If you are thinking about investing some of your hard-earned money, forget about the stock market. A Guaranteed Investment Certificate, or GIC, is a safe and secure investment. Getting the best GIC rates for your portfolio is an interesting process, and a GIC offers you many benefits. Here are 8 of these benefits.
1. Your principal amount will be safe
One of the main benefits of investing in a GIC is that you know your principal amount of money will always be safe. When the term of your GIC is over, you are guaranteed to get your money back, which makes it a much safer investment than buying stocks.
2. You are guaranteed to earn some interests
When you invest in a GIC, you can be confident that you will be earning some interests. The amount of interests you can earn depends on GIC rates, as well as on the type of GIC you choose to invest your money in.
3. There are different types of GICs
GICs are flexible investments. They can be associated with a fixed interest rate, or with a variable interest rate. You can choose between a cashable GIC, which you can redeem anytime you want, and a non-redeemable GIC, which you can’t redeem until the term is over.
4. They are easy to understand
Unlike other types of investments, GICs are pretty easy to understand. If you have some doubts, contact your financial institution, and ask them any question you might have about GICs. You will see that there’s no need to be a financial genius to understand how it works.
5. They are simple to manage
Since they are safe, flexible and easy to understand, GICs are also easy to manage. In fact, after you have chosen the right GIC for your needs, you won’t have much monitoring to do. Since your investment will be safe, you know you won’t be having any unpleasant surprise anytime soon.
6. You have different options to choose from
It’s up to you to decide how you want to invest with a GIC. You can decide to lock your money in for only one year, or you can choose a 2, 3, 4, or 5 year GIC. The GIC rates you can enjoy will depend on which option you choose.
7. It will protect your savings better than a savings account
Saving money to buy a new car or to go on a dream vacation can be difficult. When you are facing an unexpected event, it can become tempting to use some of the money you are keeping in your savings account. When you choose a non-redeemable GIC, you know your savings will be protected, no matter what happens.
8. GIC rates are interesting
The interest rates associated with ordinary savings accounts are generally pretty low. GIC rates are much more interesting, and can help you reach your financial goals faster. Don’t hesitate to compare GIC rates online so you can make the most of the hard-earned money you want to invest.