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5 Steps to Improve Your GIC Rates


Many people encounter challenges choosing investments and making sure that the investment they’ve chosen offers the best rates of return. This is particularly true in the GIC marketplace, where customers often find they’re not achieving their best GIC rates. To help guide you in improving the rates of return on your GIC, we’ll provide a quick guide in this latest post.

1. Choose Your Investment Horizon

The first step in choosing the right GIC for you and improving upon the rates available is selecting your ideal investment horizon. Perhaps you’re focused on saving for a new car over the coming year, or for a home over five years. By choosing your investment horizon and making sure the GIC is designed based on your investment requirements, you can ensure the ideal return for your investment.

2. Determine If You Wish to Lock the Money In

One of the mistakes new investors make is locking their money into a long-term contract when they’re unsure of their financial fluidity in the coming years. Most GICs will lock your money into the certificate for that period of time, and if you wish to retrieve your money earlier than the close date for the GIC, you then have to pay a penalty of thousands of dollars. It’s important therefore that you determine whether you wish to lock the money in for that period of time, in order to safeguard your money.

3. Work with Experts to Choose Fixed or Variable Options

Most new investors will also pick fixed rate GICs as a way to guarantee their investment returns in the coming years. However, this might not be the most effective strategy for improving your return on investment. Work with a specialist to look at the current market dynamics and determine if a variable rate GIC might offer the level of return you expect for the coming years. Experts work to track the trends in the marketplace and have a greater understanding on the events that can impact interest rates. They can therefore help you allocate your GIC resources more effectively while limiting your investment risk.

4. Consider Income Potential

There are a number of income-paying GICs available on the marketplace. These products will pay you on a regular basis for the interest accrued on your investment. Another great option for those investing in GICs is to set up an GIC ladder, which allows them to buy GICs that mature at specific times and then pay interest on specific dates. You may put $5000 into a 2-year GIC and $5000 into a 3-year GIC, for example which then helps provide scheduled payments more regularly than you would simply putting $10,000 into one GIC investment.

5. The Importance of Working with a GIC Expert

So now that you have a better idea on how to choose your GIC investment and how to achieve improved rates from the investment process, it’s important to consider management of your GIC investments by professionals. A specialist in the marketplace can help you to:

  • Save on fees
  • Help you to accrue interest with their understanding on the marketplace
  • Guide you on the available options within the GIC marketplace
  • Ensure your file the proper paperwork as part of the investment process
  • Stay updated on your investment

Working with professionals can ensure you make the right choices for your future financial health. When used correctly, a GIC is a safe way to enter into a strong market and to use your built-up savings to reach an important financial milestone. Contact local specialists in your area today to learn more on the value GICs can offer your financial portfolio.


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