Let’s talk about short-term savings. By short-term, we’re talking about putting away money for a few months, or even a few years, for a big goal, like a vacation, a wedding or a down payment on a home. Where should you put your savings so they’ll be secure and work for you?
When saving, you have several options, but if you want your money to work for you, hedge against market volatility and earn some interest, the often-overlooked GIC could be a smart option for Canadian investors of any age. They’re not just for conservative investors or retirement planning.
What is a GIC?
A guaranteed investment certificate (GIC) is a financial tool where Canadians can invest their money for a specified period of time and earn interest on the principal. GICs are issued by banks and trust companies, such as EQ Bank, and they’re considered safe investments because the issuers are legally obligated to return the initial deposit and (with a few exceptions, such as index-linked GICs) pay interest to the investor…