If you have some money you would like to invest, but you don’t want to risk losing it, getting a Guaranteed Investment Certificate (GIC) is a great idea. With a GIC, you are guaranteed to get your money back, with some interests.
Before you buy a GIC, you will need to shop around for the best rates, and to consider your different options. Here is how you can get a Guaranteed Investment Certificate.
1. Start by comparing GIC rates
People who are interested in buying a GIC have different options, so it’s important to take a moment to compare GIC rates before you make a decision.
An easy way to do this is to go online and search for a GIC rate comparison tool. Using such a tool will be more simple than getting in touch with different suppliers of Guaranteed Investment Certificates to ask them about their rates.
2. Decide on the term of your GIC
While searching for the best GIC rates, you also need to look at GIC terms. When you buy a GIC, you will be paid a fixed rate of interests for a term that can go between 6 months and 10 years.
Think about how long you would like to invest your money, and search for the best combination of interest rates and term. If you think you won’t be needing this money anytime soon, go for a longer term.
3. Figure out if you might need a redeemable or cashable GIC
If you don’t know whether you might need your invested money before the end of the term, you might want to choose a redeemable or cashable GIC. Both options allow you to withdraw your money without paying penalty fees.
With a cashable GIC, you will be able to get your money after a certain period of time, and you will receive your interests for the amount of time you kept your investment. With a redeemable GIC, you can withdraw your money anytime, but you will earn less interests if you do.
4. Buy your GIC from an independent broker
It’s possible to buy a Guaranteed Investment Certificate from an independent broker, in person or online. Brokers can offer you GICs from different financial institutions, and they can generally present you with higher interest rates.
It’s also possible to buy a GIC from an online discount brokerage, but if you choose this option, you won’t be able to receive advice and recommendations. If you need some advice to make the best choice, make an appointment with a broker.
5. Buy your GIC from a bank or a trust company
You can also decide to buy your GIC from your bank or trust company, which can be done in person, over the phone, or online.
Of course, it’s possible to buy a GIC from a bank you don’t have an account with, if you are interested in what they are offering, but you will first have to open an account with them.
6. Buy your GIC from a credit union
Finally, it’s possible to buy a GIC from a credit union. This can be done in person or online, as long as you have an account with the credit union. If you don’t, you will first have to open an account before you can buy your GIC.
Rates and terms can vary a lot from one supplier of GICs to the other, which is why you need to first do your research and compare rates. Even though a GIC is a safe investment, it’s important to take a moment to figure out exactly what you want and need.
