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5 reasons to invest with GICs

June 26,2020

Author: Martha Harbell

1. GICs are secure and low risk

With a GIC, you get a guaranteed return on the money you invest. There’s no holding your breath and hoping that you don’t lose your savings. Plus, financial institutions like motusbank issue GICs that are eligible for deposit insurance from the Canada Deposit Insurance Corporation (CDIC).

2. GICs help balance your portfolio

GICs are a safe investment option, but that doesn’t mean they’re only useful to people who want to play it safe. If you want to check out higher risk investments, GICs are a great way to keep some of your money secure. That way, you could potentially earn more interest without taking a lot of risk.

3. You can customize GICs to fit your savings goals

Flexible GIC term lengths, from a few months to several years, make it easy to customize your investments to save for short- or long-term goals. You can also choose different types of GICs based on what kind of interest rate you want or whether you might need access to your money early. Registered GICs are also a great option because the interest you earn is tax-free.

4. Maximize the returns on your investment with multiple GICs

Get the most out of your GICs by laddering. This is when you divide your investment into multiple GICs with different maturity dates – like 1-year, 2-year, 3-year, 4-year, 5-year. This way, one of your GICs will mature each year, giving you the option to access some of your money or reinvest. It adds flexibility, protects against changing interest rates, and increases your overall annual returns.

5. Establish a reliable source of income

You can choose a GIC that allows you to withdraw guaranteed interest payments at select intervals. This is great for anyone living on fixed income, because it provides another reliable source. It also makes it easier to plan out your finances because you know you can count on that income.

The benefits of investing with a motusbank GIC

Now that you know all the benefits of GICs, let’s talk about investing with motusbank!

It’s easy to get started
The minimum investment for GICs at many financial institutions is $1000, but at motusbank it’s only $100!

Build your perfect GIC with all our great options
With motusbank, you can choose from a range of great GICs with terms ranging from 30 days to 5 years and highly competitive rates.

Explore all GICs