Check the details about the Best GIC Rates in Canada for February 2024: Here’s What You Should Know About GIC Rates. With the beginning of the new month, the GIS rate of interest will also be modified. We have shared the details about the Best GIC Rates in Canada for February 2024 in this article.
Best GIC Rates in Canada for February 2024
The citizens of Canada invest more in the GIC than other investments like stocks and mutual funds. They believe the GIC has a low-risk margin compared to the other investments. Even families with moderate incomes save to invest in GIC. Although the GIC ensures to provide low interest, the price of the GIC is also less compared to other investments.
There are many public and private financial institutions that have proven the service of GIC. This includes RBC, GIC Market Link, ESG, CIBC index Growth, EQ Bank, and many others. The GIC plans will be issued based on the time frame of the investment. The investment period includes one, two, five years, or 18 months. Scroll the article to know more about the Best GIC Rates in Canada for February 2024.
What is GIC?
The Guaranteed Investment Certificate entailed for moderate-income families. With the help of the supplement, individuals can invest their savings in the long-term cause. The GIC provides the low-risk interest. the GIC is a short-term loan to the banks. If the bank goes bankrupt for uncertain reasons, the Canada Deposit Insurance Department will step forward to return all the benefit principles to the beneficiaries.
In simple terms, the GIC can be explained as the amount the applicant is providing to the bank as the loan, and they will receive the benefit amount at any time with the principal margin included in the paycheck. When the applicant will be investing the GIC, they will sign a contract with the bank stating that the bank will return the amount to them with the interest rate calculated in it.
Benefits of GIS
In the previous year, there was a huge trend to invest in GIC. The rate of GIC was decided to be 0.50 percent before the summer holidays. Around 12 million new investments were recorded during that period.
The investment principal will be safe no matter what happens in the stocks and the market values. The principal rate of the policy will not change. The market-linked GIC will be a better option for candidates who are in doubt about the change in the market, which will affect the prices in the benefit. There are many investment policies, such as non-readable, cashable, and Personally readable GIC.
Who Has the Best GIC Benefit Plan?
The GIC rates have constantly been rising, all thanks to the Canada Bank. To overcome the inflation, the policy interest is adjusted to 5.00 percent for this fiscal year. The interest amount has been raised by 10 % compared to 2022. The GIC interest rate will be dependent on the investment plan and the time of the investment. There are many investment pains ninth e in benefits. Some of them are discussed in the below section
One Year Plan
The plan is to provide the investors with a year guarantee. The interest rate for the plan is 5.70 percent. The minimum deposit required for the investment is $1000. There are many financial institutes providing the best plans.
- EQ Bank-5%
- Peoples Bank Long term 1 year- 5.25 percent
- Tangerang Bak – 4.92%
Two Year Plan
The interest rate for the plan is 5.60 percent. The minimum investment required for the deal is $1000.
- Wealth One Bak of Candana Two Year Plan- 4.80%
- EQ Bank-4.40%
- Tangerine Back – 4.00%
- Motive Bank – 4.55 percent
Five Year Plan
The interest rate for the plan is 5.00 percent. As the time frame of the investment increases, the interest rate decreases.
- EQ Bank-4.49%
- Tangerine Back – 3.8%
- Motive Bank – 4.55 percent
Here’s What You Should Know About GIS Rates
The investment rate is likely to be 1.05 percent this year. Although it is quite high compared to the previous year. The interest margin of the benefit is also expected to increase with the investment plans. The GIC rate can be 5.6 percent for the 30-day to 10-year investments. All the institutions will be providing different plans for the investments, such as
- Fixed-rate GIC
- Escalator GIC
- Market Linked
- Variable GIC.
The national GIC interest rate is 3.03%, with a long-term average of 4.08 percent and a growth rate of 7.96 percent. The investors cannot access the funds until their maturity dates.