Keep in mind that inflation has an effect on GIC rates, and timing is crucial!
Talk to the team at Walton Financial Group about the timing of GIC purchases and the financial advice for your portfolio
There are still opportunities to capture rates on guaranteed investment certificates that offer a very satisfactory return when you consider a risk level near zero thanks to deposit insurance.
Rates of 5 per cent are gone for longer term guaranteed investment certificates, but a few alternative banks have offered 5 per cent for one year and an even smaller number had 5 per cent for two years. Now, there’s wider availability of 5-per-cent returns for a two-year term.
Don’t get the wrong idea about GICs in today’s high rate world – they’re not a replacement for stocks as a portfolio pillar unless you’re a very conservative investor. What GICs do is offer security for money you need to keep safe, as well as a way to diversify or even replace bonds in a portfolio.
Call the financial planners at Walton Financial Group in Barrie Ontario for advice about whether GICs would be a good fit for your portfolio today.
