Personal Retirement & Savings:
Guaranteed Investment Certificates (GICs)
Guaranteed Investment Certificates (GICs) are one of the safest and easiest investment options available. With a GIC, you receive a guaranteed amount of interest for a guaranteed period of time. GICs are secure investments that are guaranteed to preserve your principal, while your investment earns interest at either a fixed or variable rate.
What kind of flexibility to I get with a GIC?
- Short term – 30 to 364 days
- Long term – 1 to 5 years or 10 years
- Flexible maturing dates – you get to pick the exact date that you receive your money back
What if I need my money back before the term is up?
You can have access to some or even all of your money if you require it before the maturity date, but penalties may apply.
Why should I invest in a GIC?
- Competitive interest rates
- Eligible for registered investment plans
- Flexible investment terms
- Security and safety
- Selection of interest payment frequency
GICs have a low-risk profile, which is why the return is generally less than other investments (such as stocks, bonds, or mutual funds). Fixed rate GICs are a safe investment for low risk tolerance individuals, but variable rate certificates tied to an underlying index can produce even higher gains. The type of GIC that is right for you all depends on your risk tolerance and whether or not you require a short or long term investment. At maturity, GICs can either be cashed as taxable income or renewed for another term.
GICs are an excellent investment option for short term goals (such as saving for a vacation), but are also great for longer term goals as well.
Guaranteed Investment Certificates (GIC’s): issued by Sun Life Financial Trust