If you're a millennial, here's why you should be investing in GICs
If you’re a millennial, among the other things you’re doing in 2022 (digging up your Walkman for your nibling who is “really into tapes” now), you likely have investing on your mind. In the wake of the great crypto crash, the stock market tanking and a precarious housing market, it’s time to find somewhere safe to invest your hard-earned money. A Guaranteed Investment Certificate (GIC) can be that safe haven.
GICs are a low-risk investment that will ensure you receive your entire investment back, plus interest. The rates and terms for non-redeemable GICs are locked in, and your deposits are secure. GICs are available in a variety of rates and terms, so you can use them for short, medium, or long-term goals.
Keep reading for some scenarios where a GIC can be your savings’ best friend.
Is home ownership in your five-year plan? Saving for your down payment is not the time to dabble in risky investments. With the guaranteed interest rates GICs offer, your nest egg is safe and growing until the term is up, and you're ready to snag those keys. Keep in mind that EQ Bank GICs are non-redeemable, meaning the funds are locked in over the course of the term you choose. You’ll want to time your GIC to mature in-line with your purchasing timeline.
Fairy-tale weddings are great - until you need to pay for one. A GIC is a great place to park savings for your upcoming nuptials. Whether your wedding is in three years, five years, or you haven't met that special someone and you just really like to plan (we've got a ten-year option, too)! If you’re currently using a high-interest credit card to reserve wedding vendors, consider stashing money in GICs that will mature just before your payments come due – you’ll earn high interest between now and the big day. Now, if the thought of planning a wedding makes you want to elope, keep reading to see how a GIC can help you purchase something with four wheels.
Gas prices may have hit historic highs this year, but it’s undeniable that some lifestyles require a vehicle. If you’re leaving a sprawling urban centre in search of greener (and more affordable) pastures, you might need one. Depending on when you’re planning to purchase your getaway car, lock in your savings at a great interest rate with a GIC and enjoy the gains when you’re ready to escape.
Did someone say escape? While you’re dreaming of your next epic trip, a GIC could be the ideal place to put away the funds that will help make those dreams a reality. A GIC is a great way to build guaranteed savings for your upcoming trip. Why not try a six-month GIC to save for your dream getaway and book the flight when the GIC matures?
The “Great Resignation” continues to top the Google search charts in 2022, proving that the movement is touching Canadian workers with a similar intensity to the US. If a skill gap is holding you back from levelling up in your career, you might be considering continuing education. A GIC can help you get there. One of the great features of non-redeemable GICs is that the funds are locked in until your term is up, meaning you won’t be tempted to spend your hard-earned money.
Retirement may seem like a lifetime away, but saving early is your best bet for a comfortable retirement. We all know when it comes to retirement savings, diversification is key, and a GIC can be a great investment to add to the mix! EQ Bank offers longer term GICs that you can use for a goal that’s a few years down the road, and you can also set up a GIC ladder to help you maximize your earning potential.
You can learn more about EQ Bank GICs here.
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