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If you’re thinking about opening a Guaranteed Investment Certificate (GIC) in Canada, there has never been a better time! Canadians have a lot of choices when it comes to GICs, however, the newly-launched EQ Bank GIC is currently offering some of the most competitive interest rates in Canada.
What is a GIC?
New to GICs? Let’s take a quick crash course. A GIC is an investment that secures 100% of the money you put into it while earning a fixed or variable interest rate.
Usually, you will have to agree to invest your money for a certain amount of time in exchange for the interest rate. It’s considered to be a safe investment because you’ll always get the principal (the amount you put into your account) back, despite market trends.
What do we love about EQ Bank’s GIC?
EQ Bank shocked Canada when it launched its Savings Plus Account with a 2.30% everyday interest rate (currently one of the highest in Canada). Now, EQ Bank is making waves again with its new high-interest GIC offering of 2.60% on its 15-month GIC option.
That said, here are the top 3 reasons why we recommend the EQ Bank GIC to help you save for the future and generate substantial interest on those savings.
1. Competitive interest rate
EQ Bank’s 2.60% interest rate for the 15-month product is highly competitive and the interest is calculated on a per annum basis. Simply put, this means the interest is calculated yearly and paid solely at maturity. In all cases of the EQ Bank GIC option, interest is accrued for the entire GIC term.
2. A competitive term
A competitive time period is another reason why we’re excited about EQ Bank’s GIC. In the grand scheme of things, 15 months (one year and 3 months) really isn’t that long. Some GICs from other banks with this return on interest will require you to purchase a GIC with a much longer 4-6 year term.
EQ Bank does have different GIC options: 1 year, 15 months, 2 years, 27 months, 3 years, 4 years, and 5 years – all with varying interest rates. However, if you’re looking for a short-term investment and a great interest rate to earn some cash, the 15-month option may be an ideal option for you. We encourage you to browse the options yourself here.
3. Only a $100-dollar minimum investment required (!)
Historically, GICs require an investment of at least $500. EQ’s GICs are making it easy to invest when you don’t have a lot of extra cash to spare. For all of the GIC options, the minimum required investment is only $100. At Borrowell, we’re all about helping people make great decisions when it comes to their finances. By lowering the minimum investment, EQ Bank is making it easier for everyone to invest, save, and reap the benefits.
A final word
You might still be thinking, “Why do I need to start saving and investing?” Investing in a GIC is important because it’s guaranteed – a word that is hard to come by these days!
A GIC can help you save for life’s experiences, life’s goals, and life turns. Whether it’s a trip, or a mortgage, or even an unforeseen setback – life is worth saving for. An EQ Bank GIC can help you get there.
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Rachel Surman is a digital writer at Questrade and a former content marketing specialist at Borrowell. Rachel is passionate about helping educate others about credit. She's also a big fan of budgeting and saving - mainly so she can visit all the places on her bucket list.
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