GICs (Guaranteed Investment Certificates) are investments which earn you a fixed rate of interest when you deposit your money for a specified period of time.
It's always best to speak to your Motor City Financial Services Representative to find the best solution for your financial needs.
A GIC can be easily illustrated by the following:
GICs (Guaranteed Investment Certificates) are investments which earn you a fixed rate of interest when you deposit your money for a specified period of time. Interest earned on a GIC is taxable. The principal and interest on a GICs is insured and guaranteed up to a maximum of $250,000.
Read more about GICs below
A Tax-Free Savings Account (TFSA) is a registered savings account, and the interest you earn is tax-free. A total of $6,500 can be contributed for 2023, and the current maximum cumulative amount that can be held in a TFSA account as of January 1, 2023, is $88,000. The principal and interest on a TFSA are insured and guaranteed with no limit on the maximum amount.
A Registered Plan is an umbrella term for several different savings plans that are registered with the Canadian government. Contributions to your Registered Plan reduce your taxable income, which allows you to pay less tax now and build a larger retirement fund for the future.
Registered Plans include Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Locked-In Retirement Account (LIRA), and Life Income Fund (LIF). The principal and interest on a Registered Plan is insured and guaranteed with no limit on the maximum amount.
These GICs are completely cashable, meaning that at any point during the term, you can take them out with no fees or penalties, along with whatever interest you've earned. Because of their flexibility, redeemable GICs will tend to have lower interest rates than non-redeemable ones.
These GICs are not cashable, meaning that your deposit is locked in for a certain amount of time. Should you wish to cash in a non-redeemable GIC early, you will incur fees or penalties while losing out on the interest you would have made for the full term. Non-redeemable GICs have higher interest rates.
Index-Linked GICs offer unlimited earning potential with zero risk to your principal investment. Your investment will be locked in for a pre-determined period and linked to stock market performance. Returns are calculated based on the S&P/TSX 60 Index*, which tracks sixty foremost companies in leading industries in Canada. Find out more about Index-Linked GICs below.
30 - 364 DAY OPTIONS
Short terms offer lower interest rates but can be used as a short term place to park your money and have it earn more than leaving it in a standard savings or chequing account.
1 - 5 YEAR OPTIONS
Longer terms offer better interest rates and can be a great way to maximize the return on your investment if you can let it mature longer. Plus, with a guaranteed rate of return, you don't have to worry about the volatility of the stock market.
Motor City offers redeemable term deposits (not locked in), which are usually short term deposits and also non-redeemable term deposits (locked in), which are usually longer term deposits.
If you are thinking of getting back into the investment market, but want the security of a term deposit with stock market gains, an Index-Linked GIC is an excellent investment option. Returns are calculated based on the S&P/TSX 60 Index^, which tracks sixty foremost companies in leading industries in Canada.
^Standard & Poor's® and "S&P®" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Central1 Credit Union and sublicensed by the Credit Union. "TSX" is a trademark of the Toronto Stock Exchange and has been licensed for use by Central1 Credit Union and sublicensed by the Credit Union. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor's or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in these deposits.
NON-REDEEMABLE GICS - REGULAR RATES | Rate |
---|---|
30 - 59 Days |
0.30
|
60 - 89 Days |
0.30
|
90 - 179 Days |
0.40
|
180 - 269 Days |
0.50
|
270 - 364 Days |
0.60
|
1 Year |
4.95
|
2 Year |
4.75
|
3 Year |
4.65
|
4 Year |
4.55
|
5 Year |
4.45
|
15 Month Special |
5.55
|
REDEEMABLE GICS | Rate |
---|---|
1 Year Redeemable GIC |
0.65
|
1 Year Redeemable RRSP |
0.65
|
1 Year Redeemable TFSA |
0.65
|
RRSPS, RRIFS, TFSA | Rate |
---|---|
1 Year Non-Redeemable |
4.95
|
2 Year Non-Redeemable |
4.75
|
3 Year Non-Redeemable |
4.65
|
4 Year Non-Redeemable |
4.55
|
5 Year Non-Redeemable |
4.45
|
USD GIC | Rate |
---|---|
30 days |
0.10
|
90 days |
0.10
|
1 Year |
0.35
|