Posted on: 23-06-09 19:55:10
Hello All,
Lets say if someone has around $10K that they wish to invest and not touch it at least for the next 3 years - what would be the most recommended option.
What suggestions do you guys have about purchasing may be 3 year non redeemable GIC and which bank would be the best to give a great rate ?
Will appreciate any and all suggestions. Looking to best ways to maximize return on this amount in the next 3 years.
Thank You in advance.
You will get the best GIC rates either through a GIC broker or through GICDirect.com
For 3 years, non redeemable GIC is the best option if you don't want to take any risk.
All other options (like bonds, preferred shares, common stock, mutual funds, etc.) will carry various types of risks.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
You will get the best GIC rates either through a GIC broker or through GICDirect.com
Thank Patrick - Where can i connect with a GIC broker. Sorry if this is dumb question - but i havent done GICs before so might as well ask.
Quote:A lot of mortgage or insurance brokers to this as well.
Originally posted by Cougar
Thank Patrick - Where can i connect with a GIC broker. Sorry if this is dumb question - but i havent done GICs before so might as well ask.
You can try asking your mortgage or insurance broker if he/she does this or can provide a reference.
You could also try calling them directly via Bank Rate.com
http://www.bankrate.com/can/rate/dep_ratehome.asp?web=can&prodtype=dep&state=ON&market=917,943&product=347&sort=3
Currently they are showing 3.25% for a 3 year non redeemable GIC.
The other option is if you have a discount brokerage account, you could try asking them if they provide "high interest" GICs. If they do, it might be easiest to buy directly through your brokerage.
Another option is to buy from GICDirect.com.
They are like an online deposit broker.
http://gicdirect.com/
So quite a few options for you...
Whichever way you go, make sure to check on whether there is deposit insurance or not, and whether it is Federal (CDIC) or a provincial guarantee.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
Originally posted by pratickm
Quote:
Originally posted by Cougar
Thank Patrick - Where can i connect with a GIC broker. Sorry if this is dumb question - but i havent done GICs before so might as well ask.
Whichever way you go, make sure to check on whether there is deposit insurance or not, and whether it is Federal (CDIC) or a provincial guarantee.
Just a quick question. What difference it makes to have Federal (CDIC) or a Provincial guarantee?
Quote:CDIC is funded by all the chartered banks and is backed by the Federal Govt. (it's a Crown Corporation).
Originally posted by web2000
Just a quick question. What difference it makes to have Federal (CDIC) or a Provincial guarantee?
OTOH, the provincial deposit insurances are backed by the provincial governments.
Many people believe that CDIC insurance is much stronger and guaranteed than provincial insurance.
In the event of a big bank failure (and the last federal failure was in 1996 and was not one of the larger banks), it is quite likely the Federal Govt. will step in and gurantee all the insured deposits.
Whether a province will do the same is less likely, although possible.
In Ontario, there have been 15 institutional failures in the last 3 years alone.
Refer -
http://www.cdic.ca/e/insuredWhere/history_failures.html
and
http://www.dico.com/design/1_3_Eng.html
None of this has mattered much in the past, but since these days financial institution failure risk is so high, the validity of the insurance must be questioned and examined.
-----------------------------------------------------------------
"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Quote:
None of this has mattered much in the past, but since these days financial institution failure risk is so high, the validity of the insurance must be questioned and examined.
I have another dumb question. What are the risks associates in having a GIC with as such not-so-popular establishments. I mean is there a way i can be sure that the money once put in a GIC will be returned to me upon maturity ? I can trust all these big banks however there are names that are offering great rates but their names are unheard of. Could it be that one could be totally cheated upon and might loose all investment because of cheaters out there.
