# GIC Options



## christinad (Apr 30, 2013)

Does anyone know of any gics other than peoples trust or maxa financial that pay high returns. (Not really high, but higher). The problem with People's Trust is you can't take out your money before the due date. I don't like Maxa because you have to mail in a cheque, you can't do it electronically. That seems ridiculous. My concern is that if I am laid off and in dire straits I may need to take money out of my rrsp.

Thanks,

Christina


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## james4beach (Nov 15, 2012)

I use Outlook Financial (part of Assiniboine Credit Union, MB). The GIC rates are high and they're cashable, which is great. Cashable still would incur a penalty but it's nice knowing the money isn't totally locked in.


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## AltaRed (Jun 8, 2009)

There is considerable info at http://www.highinterestsavings.ca/ on GICs rates, institutional nuances/behaviour et al.


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## shanti (Dec 3, 2011)

I'm thinking about GICs offered by Achieva Financial. 

1 Year 2.15%, 2 Year 2.35% 3 Year 2.55% 4 Year 2.75% 5 Year 3.0%.


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## alingva (Aug 17, 2013)

find a GIC broker. Another option is to check with a stock broker( CIBC, RBC, TD, eTrade, Scotia etc), they offer GICs also, they offer GICs from most FIs


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## birdman (Feb 12, 2013)

I have some GIC's and savings with Achieva and find them fine. No problems and easy transferring back and forth between it and my home financial institution.


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## the-royal-mail (Dec 11, 2009)

Are you relying on your RRSPs for an emergency fund? Wouldn't it be better to save an e-fund (yes, in GICs) outside of your RRSP?

Anyway, take a look at RBC's offerings. They have pretty decent GIC rates but the kicker is the best rates are in their non-cashable version.


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## christinad (Apr 30, 2013)

Thanks for the advice. It looks like both Achieva and Outlook offer similar rates. They also offer RRIF gics which I like for simplicity when I need to transfer. I will have to look at their sites more closely and decide which I want to use. 

I am just thinking in a dire emergency - ie if I have exhausted my TFSA - I would use my RRSPs. I think I could last 2 years unemployed. I don't know how long you are supposed to be able to last in unemployment. I'm single so having that cushion is important to me.

If you have a gic ladder are you supposed to buy the gic at different months? What I thought was for simplicity I would buy a GIC the same month every year.

Thanks,

Christina


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## Nemo2 (Mar 1, 2012)

christinad said:


> If you have a gic ladder are you supposed to buy the gic at different months? What I thought was for simplicity I would buy a GIC the same month every year.


http://www.theglobeandmail.com/glob...-make-a-little-more-at-no-risk/article791134/



> the GIC ladder is a reasonable compromise that can be put together in about five minutes.
> 
> Laddering means dividing your money equally into GICs with terms of one through five years. Every year, you'll roll your maturing money into a new five-year certificate. If interest rates climb, you'll have a chance to buy in. If rates fall, you've only got limited exposure.


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## the-royal-mail (Dec 11, 2009)

Oh okay that makes sense. Plus you would be withdrawing RRSP in a no-low income year. Just make sure the GICs you buy are cashable.

Click redeemable:

http://www.rbcroyalbank.com/products/gic/gic-interest-rates.html


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## christinad (Apr 30, 2013)

So, I emailed Outlook Financial and apparently Assinboine Credit Union has been around since 1946 (Outlook Financial is a division of this bank and has been around since 2000). I'd still prefer a bank that is cdic insured but Oaken's aren't cashable early. I guess you can't have everything. :-(


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## Sherlock (Apr 18, 2010)

GICs are the worst investments, you really should not be using them at all unless you are retired or soon to be and even then there are better options.


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## james4beach (Nov 15, 2012)

How do you figure GICs are the "worst" investments? I disagree by the way.

If you're going to venture into stocks, you have to be willing to leave the money in there for at least 20 years. For any shorter time horizon, you shouldn't be in stocks


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## Sherlock (Apr 18, 2010)

There are options between common stocks and GICs. For example preferred shares, something like iShares' preferred index fund would be virtually as safe as a GIC, provide a much higher return rate than any GIC, and you can buy or sell it at any time without locking your money like with a GIC. I really think that everyone who invests in a GIC (and I use the term "invests" loosely because after inflation you're actually losing money in a GIC) does so only because they aren't aware of other alternatives, and if they were and understood them, they would not choose to stay with GICs.


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## RBull (Jan 20, 2013)

Sherlock said:


> There are options between common stocks and GICs. For example preferred shares, something like iShares' preferred index fund would be virtually as safe as a GIC, provide a much higher return rate than any GIC, and you can buy or sell it at any time without locking your money like with a GIC. I really think that everyone who invests in a GIC (and I use the term "invests" loosely because after inflation you're actually losing money in a GIC) does so only because they aren't aware of other alternatives, and if they were and understood them, they would not choose to stay with GICs.


FYI

Preferred shares are in no way as "safe" as GICs. There are many types. You may have share price risk, callable risk, dividend reduction risk etc. They are not CDIC insured. 
Not all GIC's are locked in. Also using a laddering approach helps offset changes in interest rates and locking in.
Inflation last year in Canada was 1.2% therefore you are not losing money after inflation since GIC rates currently pay higher than this. 
People who are aware of other alternatives and do understand GICS can and sometimes do choose GIC's as part of an overall allocation strategy. They may also choose this as an alternative to bonds that may lose value due to potentially higher interest rates.


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