How do gic rates work

Buying GICs online comes with no fees and can be done in the comfort of your own home. You can, of course, purchase GICs on this website as well. Also known as deposit brokers, GIC brokers are able to get you better rates. Brokers, often but not always, charge management fees, which can add up after paying taxes on interest. GIC taxation works in a similar way that income tax does.

The percent in which you are taxed on your income also applies to the interest gained on your investment. Whether GICs are worth it depends on the person asking. Since everyone has a different attitude towards investing, financial health, and, specifically, risk tolerance, the way people invest their money depends on personal preference. How do I buy GICs? Or if you have questions, we encourage you to use our online booking tool to schedule a time to speak with us by phone.

How do I choose the right GIC for me? Can I hold a GIC in my registered plan? Ready to Invest? Buy a GIC for your registered account or on its own. Based on the following information: Base Level from the date of purchase as indicated on your GIC certificate. Participation Factor or minimum and maximum rates as indicated on your GIC certificate. Special Rates are subject to change at anytime.

On GIC terms of less than one year, interest is calculated daily on the principal amount and is paid at maturity. You have the option to have interest paid to you via electronic funds transfer EFT or by cheque either annually or at maturity.

Products are listed in alphabetical order. For terms of less than 1 year, simple interest is paid at maturity. For terms of 1 year or more, simple interest is paid when you select the monthly, semi-annual or annual interest payment option; or, compound interest is calculated annually and paid at maturity.

For terms of 1 year or less, simple interest is paid at maturity. For terms of more than 1 year, compound interest is calculated annually and paid at maturity. Redemptions before maturity are allowed only in certain circumstances and no interest is paid. If a GIC is redeemed before maturity to transfer funds to a TFSA at another financial institution, no interest will be paid and a transfer fee will apply.

For illustrative purposes only this example assumes that simple interest is calculated annually and paid at maturity with no compounding. Two interest options are available: simple interest calculated and paid annually or compound interest which is compounded annually and paid at maturity. You may redeem early on, or within 7 days after, each anniversary date.

No redemption may be made outside the redemption windows. Interest is compounded annually and paid at maturity.