Safety guaranteed – GICs for short-term gains

Does the idea of saving for retirement make you fidget? Do you have plans to make a major purchase in the near future? Do you have an average attention span?

If you answered yes to any of these, then investing through short-term GICs (Guaranteed Investment Certificates) may be for you.

Think of GICs as a payday that arrives faster than your senior discount. A way to get that extra cash sooner rather than later. A way to honour that fact that the average human attention span is eight seconds and you need an investment that matches that.

Easily grow your money with a short-term GIC

A GIC is an investment that generates interest on a specific amount of money, at a specific rate, for a specific amount of time. With short-term GICs, the investment period ranges from three months to one year and offers little to no risk - the return is quite literally guaranteed.

Since short-term GICs provide an easy way to grow a lump-sum of money over a short period of time, they tend to be ideal if you are saving for a large purchase, such as a car or a house. In addition to protection against losing the money you invest, GICs also guarantee that you will receive the interest on those savings. The specific profit one can amass depends on the amount of money invested, the interest rate and the amount of time those savings are in play. Short-term GICs are favoured for their relatively fast growth and lack of long-term restraints – think of it as you loaning your bestie some money. (But in this case your bestie is your bank.)

Approachable on-ramp to investing

Did you know that people feel more comfortable admitting that they’ve never seen Breaking Bad than trying to figure out investing? Ok, that might not be true. However, for someone with little knowledge on how to get into the investment game, it can feel exactly like that. First off, know that you are not alone. If you find all of the options and risk levels intimidating, short-term GICs are a no fuss, no muss introduction into investing your money. In a nutshell, you can invest it, forget it, and earn more without paperwork, long processes or any other banking nonsense. 

Due to the fact that a short-term GIC is similar to a savings account (but with higher interest rates and locked in terms), you can avoid any unwanted learning curves. In fact, your gains from short-term GICs can be moved into the long-term variety or any other type of investment. Many people use a short-term GIC to build enough revenue to explore other ways to grow their savings.

A short-term GIC could be the cure to squashing first-time investing anxiety.

Avoid having your money tied up for a long period of time

As previously mentioned, short-term GICs are a great way to increase your savings at a relatively fast rate. Choosing this type of investment means you aren’t beholden to waiting years before cashing out. In addition to building funds for a house, wedding or anything that may require an increased cashflow, short-term GICs allow you to dabble in investing while sidestepping long-term commitment.

This is not to say that there aren’t benefits to long-term investing – there absolutely are. Short-term GICs simply offer a way to invest money that won’t disrupt your purchase plans or your attention span.

Have enough attention left to give it a try? Check out our range of GICs now.