Maximize your GIC investment
Bridgewater Bank’s non-registered, non-redeemable Guaranteed Investment Certificates (GIC) offer competitive rates, and we offer flexible terms to suit your lifestyle and investment goals. Our GICs provide security for your investment dollars, as well as a fixed rate of return. GICs help balance your investment portfolio and are a great option for the fixed-income part of your asset allocation. They’re also a great investment vehicle for smart investors who can use GIC benefits to their advantage while offering consistent and stable returns.
GICs are a good fit for all ages. They are a good fit for older investors who will need access to money sooner and want a low-risk investment or simply need to balance their portfolio. But they are also a good investment vehicle for younger investors looking to save for their next vacation or a down payment on a house. You can use GIC terms to your advantage; they are a good option for short, medium and long term goals.
Consider these tips when you’re investing in a GIC:
Climb the ladder to GIC success
When you “ladder”, you purchase multiple GICs with different maturity dates. Once all the money is invested, you would have portions of your investment coming up for renewal regularly. This helps you maximize your returns while both avoiding risk and taking advantage of varying interest rates. Staggering your GIC investments with laddering also allows you to access cash if you need it with shorter-term GICs, while benefiting from higher rates offered by longer-term GICs.
Diversify by products
There are many term and interest rate options to choose from. By diversifying your GIC investment across a variety of short and long term investment products, you are able to benefit from the different terms and rates that each product offers.
Always be prepared
We never know what the future holds for us, so it’s always smart to be prepared for what life brings. Give yourself the security of knowing you can cover unexpected expenses should the need arise. Create a fund so you don’t rely on credit or a loan. Have a GIC investment specifically set aside to help build your rainy-day savings, or try directing a small monthly amount into a Smart eSavings account and build up your fund.