Page 210 - A Canuck's Guide to Financial Literacy 2020

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▪ Redeemable GICs

Redeemable GICs work the same way as regular GICs. You are able to earn a
guaranteed rate of interest on your deposit. In addition, you have the option to
withdraw the funds at any time before maturity.
▪ Short Term GICs

Short term GICs have a term of less than one year. The terms are typically from 30
to 365 days. Short term GICs offer a lower rate of interest in comparison to long-term
GICs.

▪ Long Term GICs

Long term GICs are for individuals who don’t’ need access to their money for
1,2,3,4,5 years. These type of GICs offer a higher rate of interest as you cannot
access your money before maturity.

▪ Market Linked GICs

These types of GICs are hybrid investment instruments. Your original principal is
guaranteed along with the potential for higher returns as these types of GICs are
linked to specific market performance over 3- or 5-year period.
▪ Foreign Currency GICs

A foreign currency GIC allows you to earn interest in a foreign currency such as US
dollar. These type of GICs offer lower interest rates than regular GICs but you may
get the opportunity to make money on exchange rates. Be aware of exchange rate
risk.

GIC Terms

The term is the length of time that your money will be invested for. There are short term and
long term GICs. Short term GICs are considered GICs with terms of less than one year.
Long term GICs are longer than 1 year. The longer the GIC terms, the higher the interest
rate.

Short Current Annual Interest Rate
Term
30-59 days 0.2000%
60-89 days 0.4000%
90-119 days 0.5000%
120-149 days 0.5500%
150-179 days 0.5500%
180-269 days 0.6000%
270-364 days 0.7000%