What is a GIC - Guaranteed Investment Certificate?

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  • Опубліковано 17 чер 2024
  • What is a GIC?
    GIC stands for Guaranteed Investment Certificate. There are many benefits to owning a GIC like guaranteed interest and principal protection. Generally, GICs are regarded as a low risk investment.
    GICs can be purchased in a variety of accounts like your RRSP, TFSA and Spousal RRSP account for example.
    This video explains the basics of what a GIC is and how they work.
    Topics covered include:
    - What is a GIC - Guaranteed Investment Certificate
    - Understanding online and bank promotions
    - The risks of owning a GIC
    - Why companies issue GICs
    - Important questions to ask before purchasing a GIC
    - What are the benefits of owning a GIC
    - How do you make money with a GIC
    #gic #gicinvestment #investing
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    Useful Links:
    How interest from GICs and other investments are reported on your tax return:
    www.canada.ca/en/revenue-agen...
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КОМЕНТАРІ • 25

  • @PatCantos
    @PatCantos 9 місяців тому +2

    So glad i found this channel, this has been by far the most easiest to understand not like others channels that just blab and blab till you just shut off. Thank you so much !

  • @marsdwarf
    @marsdwarf 11 місяців тому

    Loved this explanation, thank you!

  • @kalyanirajalingham1286
    @kalyanirajalingham1286 3 роки тому +3

    Great video!

  • @TheIndependentDollar
    @TheIndependentDollar  4 роки тому

    If you liked this video, check out our other GIC video on Market-Linked GICs: ua-cam.com/video/HnnjL6NAUJE/v-deo.html

  • @juliet3239
    @juliet3239 Рік тому

    So helpful

  • @sapphiregarden5
    @sapphiregarden5 Рік тому

    Hi there, is gic opens on weekends such as Saturday or it has to be when market opens ?

  • @jovictor3007
    @jovictor3007 Рік тому

    Gics are high these days almost 5.2 percent annually is it a good idea to lock money in them for 5 years ? before they fall down ?

  • @markgrove2561
    @markgrove2561 2 роки тому

    do you have tips on investing in market linked gics?

    • @TheIndependentDollar
      @TheIndependentDollar  2 роки тому

      Hi mark, here is the link to our video we did previously on market linked GICs. Hopefully this helps: ua-cam.com/video/HnnjL6NAUJE/v-deo.html

  • @GUYANESEGT
    @GUYANESEGT 2 роки тому +2

    if you lock in your money, can you add more money in later if you want? how does that affect your returns?

    • @TheIndependentDollar
      @TheIndependentDollar  2 роки тому +3

      Hi samus aran, usually once you're locked in you're not able to add more money into that GIC, you would just buy a new one with a new term and rate. Hope that helps

    • @GUYANESEGT
      @GUYANESEGT 2 роки тому

      @@TheIndependentDollar thanks for the reply :)

  • @Sally_Joe
    @Sally_Joe 3 роки тому +1

    Wait. The bank said I could have all my money back if I wanted, I just have to give them 24 hours notice. But, if I heard correctly, you're saying it's locked in and I could break the contract and get charged a fee for it?

    • @TheIndependentDollar
      @TheIndependentDollar  3 роки тому +5

      Hi Geek Squad, sounds like you purchased a Cashable GIC. Those can usually be accessed anytime. If you're not sure though, take a look at the paperwork they gave you when you purchased it. There is usually a section somewhere that breaks down the rules for breaking the GIC early. Hope that helps.

    • @Sally_Joe
      @Sally_Joe 3 роки тому +1

      @@TheIndependentDollar, ok phew. I'll read that over. I'm still learning and there's so much. Thanks so much for your content!

  • @MatHEWStorm
    @MatHEWStorm 3 роки тому

    Looks like I've invested into auto-renewing GICs without realizing :O I shot the bank a message asking this, but they'll probably take forever to respond. What do you think, am I screwed or do they usually let you turn off auto renewing?

    • @TheIndependentDollar
      @TheIndependentDollar  3 роки тому +2

      If it happened recently, they may let you out. Sometimes the penalty is just a forfeit of interest earned. It really depends on the type of GIC you purchased. I would reach out to them, especially if it rolled over into a low rate.

    • @MatHEWStorm
      @MatHEWStorm 3 роки тому +1

      @@TheIndependentDollar they just changed it to not auto renew for my :D thank you I was so worried haha

  • @hussainmandviwala3918
    @hussainmandviwala3918 2 роки тому

    GIC is not the best investment vehicle.. inflation will always outrun the return on investment.

  • @btcbull
    @btcbull 3 роки тому +10

    Guaranteed Income confiscation

  • @yokiryuchan7655
    @yokiryuchan7655 Рік тому +2

    3%? That' it? That's nothing.

    • @DavisOmoghan
      @DavisOmoghan Рік тому +1

      Waited 3 years and only made $90 😂

  • @sailormoonmuichiro320
    @sailormoonmuichiro320 3 роки тому

    am I the only one here from school?