Team Creditaria Financial Group
A GIC, or Guaranteed Investment Certificate, is a type of investment offered by Canadian financial institutions such as banks and credit unions. GICs are a low-risk investment option that provides a guaranteed rate of return for a specified period of time.
When you invest in a GIC, you lend your money to the financial institution for a fixed term, which can range from a few months to several years. In return, the financial institution pays you a guaranteed rate of interest on your investment. The rate of return is determined at the time of purchase and is fixed for the term of the investment.
One of the key benefits of a GIC is that it provides a guaranteed rate of return, which means that you know exactly how much you will earn on your investment. This can be particularly attractive for risk-averse investors who prioritize safety and stability over high returns.
However, because GICs are low-risk investments, they typically offer lower rates of return than higher-risk investment options such as stocks or mutual funds. Additionally, GICs are not liquid investments, which means that you cannot access your money until the term of the investment has expired without facing penalties.
Book an appointment to see if a GIC is the right product for your specific situation.
