Why you shouldn't auto-renew your GIC

We’ve all been there – you sign up for a year-long subscription, and pledge that you’ll reassess before the renewal date. Day 366 arrives, and you’re surprised with an unexpected charge for a service that might not be the right fit anymore (but technically you agreed to).

Guaranteed Investment Certificates (GICs) are a smart investment for those seeking security and guaranteed gains. But much like your subscriptions, many GICs auto-renew at the end of the term. ( EQ Bank GICs don’t!) So why not auto-renew when the time comes? Let’s get into it.

First off, before you embark on an email hunt for the contract you signed when you purchased your last GIC, keep in mind that your lender is required to give you written notice that a GIC renewal will be taking place. Now, here’s the thing. We live in an age of convenience, and the urge to just “let it ride” may be strong when you have so many other things on your mind. That said, if your GIC does auto renew, there’s no guarantee that it will be the best product for you and your investment portfolio at that time. Are you really okay with someone else deciding what’s best for you and your money? A GIC might be the best choice for you right now, but when the term is up, you might want to use your earnings to put towards a wedding, the down payment on a home, or university tuition. Whatever the situation is, you should be the one who gets to make that decision.

We believe your investments should be in your control, and that’s one of the reasons why EQ Bank GICs don’t auto-renew. At the end of the term you’ve chosen, your original investment, along with the interest you’ve earned, will be deposited back into your EQ Bank Savings Plus Account.

The bottom line? Read the fine print before you commit. EQ Bank GICs do not auto-renew, so at the end of your GIC term, YOU get to decide what your money goes towards next.

Sound good? Find out how you can get your own GIC (on your own terms) here.