Although GICs can differ in terms of how fast a customer can access the money and their rate of return, he said it is still crucial to engage with an adviser to ensure you have the proper option.
They can be redeemable or non-redeemable, depending on a consumer’s preference, with redeemable alternatives often yielding a lower interest rate.
The term’s duration can also vary, with alternatives with longer terms typically giving higher interest rates. The interest payment schedules may vary between packages as well.
Many investors, according to Senthamilselvan, are considering a laddered plan in which a portion of their funds invested in GICs matures each year, providing them the opportunity to reinvest or redistribute a piece of their total investment.
Aarash Rafiaie, a financial consultant from RBC, advised that it’s crucial for consumers to know why need the money because it will determine how it should be invested.
