What is a cashable GIC? + MORE Dec 23rd

Canadian investors have been struggling with high inflation for a couple of years now. In an attempt to cool inflation down, the Bank of Canada (BoC) continues to keep interest rates high. As a result, the interest rates available for guaranteed investment certificates (GICs) look to be pretty attractive—above 5% for certain types of GICs. While people often think of GICs as “locking in” your money, there are several types of GICs suitable for different types of investors, including cashable/redeemable ones. Simply put, a cashable GIC is a flexible GIC—one that you can sell and convert to cash even before it matures.

How cashable GICs work

Traditionally, GICs offer Canadian investors three core benefits:

Principal protection to ensure your money remains safely investedA guaranteed interest rate to ensure you get a fixed return on your investmentCanada Deposit Insurance Corporation (CDIC) coverage of up to $100,000 per depositor (in the event of bank insolvency), subject to CDIC rules and regulations

In addition to these three core benefits, a cashable GIC offers investors the option of getting their money back even before the term of the GIC has ended, if they so choose…

More Canadians will soon be able to afford dental care. A new government initiative is making it easier to get preventative cleanings, long-needed fillings or new sets of dentures. Earlier this month, the Government of Canada released more details about the Canadian Dental Care Plan (CDCP), first announced in the 2023 federal budget. The plan aims to make dental care more accessible to Canadians with an adjusted net family income below $90,000 and no private insurance. Currently, the dental plan is only available to kids under 12, through the Canada Dental Benefit (CDB), but seniors will soon get their chance.

“Far too many people have avoided getting the care that they need simply because it was too expensive, and that’s why this plan is essential,” Mark Holland, the federal health minister, said at a press conference on Dec. 11, 2023. He also noted that the plan is “going to help make life better for eligible Canadian residents because they won’t have to make the choice between paying their bills and getting the care that they absolutely need…