GIC's, Explained - When Should You Invest In Guaranteed Investment Certificates?
ฝัง
- เผยแพร่เมื่อ 1 ก.ค. 2024
- If you just clicked on this video, then you’ve probably heard of the letters ‘GIC’ before, but you’re not sure if it’s actually something you should be investing in. Investing has a few key steps, and we like to look at it like a flow chart - First, you pick your investment platform, where you’re actually going to create an account. Second, you pick your investment account, what you’ll buy the investments in. Finally, you actually pick an investment and buy it - but this step is the one that can be a little more complex. In this video, we'll break down what your investment options are, and when to choose them!
If you want to learn more about EQ Bank GICs, check out their website - www.eqbank.ca/personal-bankin...
If you want to open an EQ Bank Savings Plus account, check it out here - click.linksynergy.com/fs-bin/...
0:00 What should you invest in?
1:25 What is a GIC?
3:24 When should you invest in GICs?
4:24 EQ Bank GIC's
5:54 Investing in Bonds, Stocks and Funds
7:40 When should you invest in Funds?
#ad Thank you to EQ Bank for working with us on this video!
➡️ Simplii Financial - Our No Fee Checking Account (up to $400 bonus) - api.fintelconnect.com/t/l/65a...
➡️ EQ Bank - Our High Interest Savings Account - click.linksynergy.com/fs-bin/...
➡️ Wealthsimple Invest - Our Robo-Advisor Investment Platform ($50 bonus) - wealthsimple.sjv.io/vnkndW
➡️ Wealthsimple Trade - Our Favourite Stock Trading Platform ($25 bonus) - wealthsimple.sjv.io/yRARNB
➡️ Neo Financial - Our Cash Back Credit Card ($50 bonus) - join.neo.cc/stephandden
➡️ Questrade - Low Fee Investment Platform Canada ($50 in commission free trades) - questrade.sjv.io/AWa9jo
➡️ M1 Finance - Low Fee Investment Platform USA (Up to $500 free) - m1finance.8bxp97.net/DVq3gd
➡️ Borrowell - Free Credit Score Check - api.fintelconnect.com/t/l/612...
The links above are affiliate and/or referral links that provide us compensation when you use them to sign up. Thank you for supporting our channel!
Website - stephandden.com
Instagram - @stephandden
TikTok - @stephandden
Camera - Sony A6400 - amzn.to/2vsmDqc
Lens - Sigma 16mm - amzn.to/2vslvCV
Microphones - amzn.to/2tSa3jQ
Tripod - amzn.to/37EAibU
Small Tripod - amzn.to/2S3dWul
External Hard Drive - amzn.to/3mQzMlP
Our Music - www.epidemicsound.com/referra...
The links above are affiliate links - Steph & Den are Amazon Associates and we earn from qualifying purchases.
Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
Any questions about GICs? Ask away!
Thoughts on FHSA?
Can you buy the EQ GIC with the FHSA? Or will it be taxed?
@stephandden please tell me is GIC and RRSP are same ? But i want ti contribute into RRSP savings account to get tax retunrs at the end of year. So tell me which one to take either RRSP or GIC ?
@@Sfhhukmbcxccvhfinvest in RRSP
I need a GIC from Jamaica
Guys, visually representing what you are explaining is extremely helpful ! Thanks and keep it up. All the best.
So glad you liked it! Thank you 😊
With GICs, you put a set amount of money for a predetermined time and receive your initial investment back along with guaranteed interest. GICs are considered safe investments because they are insured and offer predictable returns.GICs are suitable for short-term savings goals, such as saving for a down payment on a house. They offer a conservative approach, providing a return on investment while ensuring capital preservation.
I agree! GICs are indeed a safe investment option, offering predictable returns and capital preservation. They are well-suited for short-term savings goals. 👍💰
You've summed up GICs (Guaranteed Investment Certificates) beautifully! These financial instruments indeed offer a safe and predictable way to grow your money.
I completely agree with this comment. GICs (Guaranteed Investment Certificates) are indeed a safe investment option, and they are known for providing predictable returns and capital preservation. They can be an excellent choice for short-term savings goals, such as saving for a down payment on a house. With GICs, you can invest a predetermined amount of money for a set period and have the assurance of receiving your initial investment back along with guaranteed interest. It's a conservative approach that suits those who prioritize the safety and security of their investments.
This video on GICs provides clear and valuable insights into a sometimes complex investment option, and I really understand what it means by how she explains it. Thanks for breaking it down!
Never heard about GICs, this video is an eye-opener to someone like me!
I love GICs because still trying to understand the other investment platforms. EQ is the best.
I really love the animations, they are so helpful! Thanks for these videos!
We're happy to hear that! Thank you for watching 😊
Great video, always so glad to learn more about investing specific to Canada :)
Thank you! 😊
I love yalls channel. I love ppl when age group talking about finiancial advice
Thank you! We love to hear that 🙏🏿🙌🏻
Very good explainer video I used to not know what GIC was lol but now getting more into it
🙌🏿🙏🏻 love to hear that!
You guys are awesome, thank you
Excellent videos. Spurred me to make active steps towards investing.
We love to hear that! 😊
I just found your channel and it's amazing. The way you both explain everything, the scenarios, the language. Thank you so much for that! All the best! :D
Thank you so much! We appreciate that 😊
Last year with the higher GIC rates I split up my emergency fund into 2 pieces, one that is in a high interest savings account (EQ as it turns out), and the other piece I split into 4 sub pieces which are in GICs that come due every 3 months - if I don't need the money then I just renew that piece for another year. It gives me access to money if it is required in an emergency, but also gives me higher rates overall since emergencies aren't all that common. I did it by buying the GICs over the course of a year, but if you already had the money you could buy 3, 6 , 9, 12 month GICs and then set them all to 12 months as they come due.
How was the return on the GIC?
You could also just buy a bond index ETF as well. Although considering the average cost of even a 1bd condo in Toronto, higher growth approaches are probably needed to save enough for a down payment.
Great vid! This stuff with clear visuals should be taught as part of Financial Literacy in High School in Canada, it didn't exist back in my day but I heard it's starting to be offered.
Thank you! We definitely agree! 😊
That my friend is a size 16 Elgin Pocket Watch that you have in your video. I repair vintage pocket watches as a hobby and I’ve repaired many Elgin pocket watches over the years.
Just FYI- There are different names for this type of ‘investment’. In the US, it is called certificates of deposit (or CDs). In other countries, it is called certificates of fixed term deposit or term deposit or term saving.
So happy y’all made a video about GICs! Whenever I talk to my friends about investment I always play your videos to help explain investing options... Could you do a video (maybe a TikTok) on GIC laddering? Would love your thoughts on them. Thanks!
So glad you liked it! We'll definitely keep that suggestion in mind, too 😊
Just got to say I’m totally understanding this now I just started to invest. I did GiCs but was like gonna invest like 5k maybe and just leave it and forget about it two platforms hoping to use my main bank and Wealth simple. It grows oh will it doesn’t oh will. 😂. Personally I have no dependant( and do not want one) so I don’t worry too much for my future. It’s a just in case scenario.
Could you do a video abour business bank accounts? I am trying to figure what the best business bank account to open is.
Hi just found your Channel! i have Eq Banking too. Thinking about an GIC in my TFSA account, can i get the monthly interest but back into my TFSA account, so i can use the Interest to make a Emergency Fund with it! or is it locked in for the full year then goes back into my TFSA Account??
Great content! Just a note that only those who have PR or Citizen status can open GICs with EQ Bank.
Thank you! 😊
Does the GIC help you to get taxes in return at the end of the year? Great video btw.😊
Do I need to deposit one time amount of money to GIC or can I deposit some every month?
You mentioned you can buy up to 20 non-registered GIC's for maximum of $ 100,000 each - but that would total a maximum of $2,000,000 - despite that I read somewhere you can only have a total $200,000 in EQ Bank. Also CDIC only insures up to $100,000 per account type per CDIC member - so if you have more than 1 GIC with EQ Bank, those won't be insured.
Hello, Den mentioned that the worst that can happen with a GIC is that you get your money back. That means in the worst-case scenario, you have your money back without the 5% interest. In this case, you are losing both time and money. right?
Just traying to understand this :) thank you.
whats it mean to pick a gic- tfsa? arent those two seperate thingss?
whats the amount gics can be taxed on?
Have you made a video on non-taxable investing. I've started adding them to my financial plan but it seems people act like you shouldn't have them unless you've maxed out registered accounts, but they have soo much freedom and simple rules with a taxable account.
Great suggestion! We can definitely do a video on this 😊
Did you consider the tax aspect on interest gained from GICs? It's taxed higher than capital gains from stocks and could even make the investment goes negative after taxed :) Also, I would love to more videos abt your fav ETFs!!
Did you consider stock can go to zero?😂 you can claim capital lost on it
Thats why u buy GICS in TFSA account.
Do you think its smart to max out your $8k FHSA limit entirely in a GIC instead of spreading it across a Savings acc and GIC?
Great explanation guys. Why do you use animations showing USD bills when you're a Canadian content creator🤔 Show the world our colorful money pride LOL
Quality or Quaintly for GIC's. Which are better?
What do you mean? GIC products are for the most part identical across the board - but they differ based on whether one is registered vs unregistered, their length of time and their interest rate. 😊
@@stephandden I wanna invest 1 GIC for 1 year. 5% interests in a non - registered account over 2 GIC'S for 1 year less money in the same account. Would you agree it's a higher profit within that year?
There are GICs called cashable GICs
The downside of the GIC is that the interest is taxed at your personal income tax rate, which could be high. Otherwise the rates are starting to look attractive
If GIC is held in a TFSA - there's still no taxes.
EQ provides 3.75% for 3-Months and 4.55% for 6-Months. Wouldn't it make sense for me to invest for 3 months.. and reinvest for 3 months.. it gives me more than investing for 6 months straight? i know im probably going wrong with the calculation.. im just not able to figure out how exactly its calculated
No that's not how it works. Those posted interest rates are always for one year. So with a 3 month GIC you'd get a quarter of 3.75% interest. For a 6 month one you'd get half of 4.55% interest
@@hieronymusvonlipschitz thank you!
whats a non regestered gic?
You have to pay tax on the interest earned because it's not in a tax sheltered account
too fast to register any thing
Is this legit?
My simple answer . . . .NEVER ! It is the highest taxed investment with no risk or growth. Worst of all, you are giving your money to the bank to invest and they are giving you some peanuts for it. Buy the bank . . . don't lend them your money cheap ! ! GICs only have one means of return. Bank stocks have potential of two means of return, capital gains and dividends.
GICs are such a scam man, just learn to invest. All my money is locked in prison till august
She’s a keeper GG ! 💯🫡