For a few years now, there has been a decline in the number of people who invest in GIC rates. In the recent past however, people have been talking about the interest rates going up and this kind of investment is starting to look quite appealing. People are however quite skeptical because most of them have very limited knowledge when it comes to the best GIC rates. Not to worry though because below are 5 super easy ways to learn everything about GIC rates.
1. Monitoring inflation
This is a great way to learn about the GIC rates because they are generally low when the rates of inflation are low and vice versa. Clients who have an objective of saving usually have no problem accepting low rates because when inflation slows down. This is because the purchasing power of their money is still maintained even if interest rates are low. If your objective is to save and the inflation rates are somewhere around 10 percent then you only need to earn just about that same amount or a little higher.
2. Approach small financial institutions
Do your research by consulting smaller institutions. This is because the smaller institutions almost always give you much better GIC rates than the big financial institutions. Smaller institutions will consistently offer you better rates. Banks and other big financial institutions are known to offer very low rates.
3. Research on the market
Each and every website on the world wide web will let you know that they offer the best possible rates but then there must obviously be one that is the best. If you want to invest, it becomes your duty to do some research. The best way to do this is by talking to independent bodies then counter checking with a financial institution to see if the information about rates is correct.
4. Thrive on short terms
Increases are enjoyed better in the short term. Lets assume the economy will not collapse, then in future the GIC rates are projected to go up. Financial institutions such as banks or credit unions will not move with the bank of Canada. They will make their moves with close monitoring of bond markets. This means that if you are making a long term investment then you will not reap the benefits of an increase.
5. Look into the GIC ladder
The one thing that really need to do is increase your knowledge about the GIC ladder. This concept can help you regardless of the outcome. The is a concept that will show you how your money matures so that you will always know when to buy in and even when things go under, you will not be exposed as much.