GIC
Guaranteed Investment Certificates (GICs) are secure investments that can provide you with a fixed rate of return over a set period of time. With a GIC, you will know the exact amount you will receive on the maturity date and can rely on the cash it generates to pay for your expenses.
However, despite being safe and reliable, there continue to be several myths and misconceptions about this important investment option.
Five myths and misconceptions
- GICs cannot be held in a TFSA, RSP or RIF
Not true. GICs can be purchased in a registered account so the interest you earn is either tax-free in a TFSA or tax-deferred within an RSP or RIF account. Oaken Financial offers GICs in both registered and non-registered accounts. - Your money is locked up for the long haul.
It doesn’t have to be! There are many types of GICs; they are not all long-term and non-redeemable. Oaken Financial offers GICs with terms ranging from 30 days to 5 years. How long you want to invest in a GIC will depend on your needs. Plus, with Oaken Financial cashable GICs that have a term of 1 year, you have the flexibility of accessing your money if and when you need to after the 30-day or 90-day closed period. Using a GIC laddering strategy can also help you make your investment more flexible. - GIC interest rates are all the same.
Absolutely not. GIC rates are not all the same across financial institutions. See Oaken’s GIC rates today and how they stack up against others. They’re all listed side-by-side for easy comparison, and we think you’ll agree our GIC rates are some of the best in Canada. - GICs are only for conservative investors.
GICs do appeal to conservative investors because they’re a safe investment where your principal is protected, and the interest rate is locked in and guaranteed (unless you buy a market-driven or variable rate GIC). However, GICs can also have value in other circumstances as well, such as if you are saving up for something specific – like a vacation, down payment or home renovation – and need to know your money is securely set aside for that purpose. Want to know how much your money can grow? Check out Oaken Financial GIC calculator. - GICs are not covered under the Canada Deposit Insurance Corporation.
False. GICs are protected by the Canada Deposit Insurance Corporation (CDIC), unlike mutual funds, stocks, bonds, Exchange Traded Funds and cryptocurrencies. And, because all Oaken GICs are available through either Home Bank or Home Trust Company – both of which are separate members of the CDIC – this means the funds deposited with either issuer are eligible for full CDIC coverage up to applicable limits as set out by the Crown corporation.
The truth about GICs
Whether you’re looking to set aside money in a non-registered or registered GIC, let Oaken Financial help you with your investment and financial needs. Book an appointment for an in-person chat, call us at 1-855- OAKEN-22 (625-3622) to learn more about the GICs offered by Oaken Financial, or if you prefer, get a GIC easily online in as little as five minutes.