When you work with a 4 Pillars debt consultant in Victoria, one of the many options you have is to take advantage of a savings option known as a Guaranteed Investment Certificate (GIC). This involves agreeing to invest a certain amount of money for a specific amount of time. In exchange for doing so, you get paid interest on the money you invest. It’s more secure than most investments as the principal is safe the entire time.
The Basics of the GIC
In the most common cases, you will invest $500 or more into a GIC. You also will be required not to touch that money for a certain period, which can vary anywhere from a month to a decade. The majority of GICs offer you interest and often at a higher rate than a traditional savings account would. However, if you end up taking the money out early, you will likely lose any interest you would have earned over the period. Also, depending on the type of GIC, there may be a penalty for withdrawing your month early.
Types of GICs to Choose From
There are two major types of GICs. There is the fixed rate GIC and the variable rate GIC. No matter which you choose, your money is safe the entire time. If you go with a fixed rate GIC, you will get a specific amount of interest for investing your money. A variable rate GIC is a bit different because the amount you are paid relies on how the stock market is doing. You take a chance with this type of GIC because you could make more than you would with a fixed rate GIC. Before you choose to invest in either, make sure you ask questions and determine it is the right fit for your needs.
Reasons to Consider a Guaranteed Investment Certificate
If you have had trouble with your finances in the past, your 4 Pillars debt consultant in Victoria may suggest this type of investment to give you a way to save money. You can invest for only a month if you prefer and you’ll still come away with extra money due to interest. If you aren’t quite ready for a long-term investment, GICs can be a great answer.
Whether you’re interested in credit counseling, debt consolidation, GICs, or other money management topics, the experts at 4 Pillars are here to help. You can learn more by visiting 4pillarsdebtconsultants.ca
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