Page 211 - A Canuck's Guide to Financial Literacy 2020
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Long Current Annual Interest Rate
Term
1 year 1.0000%
2 years 1.3000%
3 years 1.4000%
4 years 1.5000%
5 years 1.7500%
6 years 1.9000%
7 years 2.0500%
8 years 2.2000%
9 years 2.3000%
10 years 2.5000%
Example of GIC Purchase
John has $10,000 to invest in his non registered account. He is a low risk investor and
wants to purchase a 5-year GIC at 1.75%
Year Principal (end of year) Interest
1 $10,175.00 $175.00
2 $10,353.06 $178.06
3 $10,534.24 $181.18
4 $10,718.59 $184.35
5 $10,906.17 $187.58
Total $906.17
Interest
At the end of 5 years, John has earned $906 in interest.
Canada Deposit Insurance Corporation
Canadian Deposit Insurance Corporation is a Canadian federal Crown Corporation that
provides insurance to deposits at Canadian commercial banks and saving institutions. The
CDIC insures up to $100,000 per personal account in the event that a insured member were
to go bankrupt or default.
