Making the most out of the money you earn is ideal. This will require you to make the right investments and to avoid squandering away your hard-earned cash. The good news is that there is a wide variety of methods for you to earn interest on the money you have. One of the top techniques is by obtaining a guaranteed investment certificate (GIC). Doing so will allow you to make a certain amount of interest and this can help increase your bank account with great ease.
1. Think about the length
You’ll need to commit to a certain amount of time if you wish to earn the most from your investment. The good news is there are varying levels that typically range from one to 10 years.
However, you don’t want to choose a term that’s too long if you need the money sooner rather than later. Doing this could cause you to be faced with fines and penalties that you’ll undoubtedly wish to avoid.
2. Stay in the loop
Taking time to do your research is by far one of the most effective ways to earn the most cash from your investment efforts. The best time to make a move and get a GIC is when the financial market in Canada is doing well.
You’ll be much more likely to secure a higher interest rate, and this is the reason for making an effort in the first place. Taking time to watch the news and staying in tune to the various happenings around you can pay off much.
3. Choosing not to lock in your cash
One thing you’ll want to do is think about the type of GIC you wish to get. There are varying types and keep in mind as stated earlier if you do lock in your money may be penalized if taking it out too early.
If there’s a slight chance that you may need to do this, you’ll want to avoid selecting a lock-in option. This can allow you to feel at better ease about the entire situation.
4. The amount
Of course, one of the top decisions you’ll need to make is how much you intend to invest in your GIC. This is one thing that’s necessary to do before even visiting a bank in your area.
It’s a great idea to plan for this time by having a certain amount of money put back in your savings. Another thing you’ll want to consider doing is going over your budget exceptionally well and learning what you can afford in this situation.
5. Fixed or variable
You’ll have the option to choose from a variable or fixed rate, and this is something you should consider well beforehand. Remember that a fixed rate will remain the same throughout the GIC term.
However, a variable rate will change at different intervals, and this is something you’ll want to consider. There will be highs and lows so be sure to think long and hard before making a choice.
6. The banker
You’ll want to choose a banker that you can rely on and have done business with in the past. This is the key to feeling safer and more secure with any investment.
While it’s possible to use a new lender, you may feel less anxiety about working with a previous one.
Taking charge of your financial status is entirely up to you. One way to help you with this goal is by choosing a GIC that suits your individual needs.