6 times when a GIC is a smart investment choice + MORE Mar 10th

Guaranteed investment certificates, or GICs for short, are low-risk investments offered by banks and other financial institutions. In exchange for committing your money for a term ranging from 30 days to 10 years, the bank will pay you a guaranteed rate of interest.

GICs are particularly safe because they give you a guaranteed return, unlike other investments that have variable returns, such as stocks and bonds. And when you invest in GICs at a financial institution that is a member of the Canada Deposit Insurance Corporation (CDIC), your deposits are eligible to be protected by government-backed insurance up to $100,000 per eligible account.

The low-risk nature of GICs makes them ideal when saving for a big goal with a deadline, like a down payment on a home or a big vacation, as well as when you want to protect your capital—for example, if you’re approaching retirement or already retired.

Recently, GIC rates have risen significantly. Let’s take a look at how GIC interest rates are determined…

If you’re a small business owner, you know how important it is to have a dedicated bank account for your business. The problem is that business bank accounts are generally more expensive than personal accounts. If you’re not careful in choosing the right service plan, you can spend hundreds of dollars on unnecessary fees each year.
To help you find the right account for your business, I’ve compiled a list of 18 of the best business bank accounts in Canada. I’ve included the big five banks and several online banks and divided the accounts into the following categories:

Best Basic Business Accounts: Best for small and new businesses
Best Unlimited Business Accounts: Best for companies with large transaction volumes
Best US Dollar Business Bank Accounts: Best for US dollar transactions
Best Online Bank Business Accounts: Best for earning interest on business savings

You’ll notice that the big banks offer the widest range of features and service plans, but the online banks are great as complementary accounts where you can earn interest on your excess savings…

A guaranteed investment certificate (GIC) may seem like your grandfather’s kind of savings product. After all, his generation was fond of similar investment tools, like government savings bonds and treasury bills, and benefited from periods where interest rates were high enough to make these low-risk products quite attractive.

Issued by banks and trust companies, GICs work much like a savings account with interest rates that are slightly higher. The main difference is you promise to leave the funds alone for a set amount of time—usually ranging from one to five years. Your principal is protected by the Canada Deposit Insurance Corporation (CDIC) (or provincial deposit insurance, for GICs with credit unions or trust companies), up to $100,000 per product, in most cases. You can have multiple insured GICs up to $100,000 in each of your RRSP, TFSA, non-registered accounts and joint spousal non-registered accounts at one financial institution, and do the same at another institution as needed to ensure your money is fully protected…