You have finally decided to stop all this back and forth trial and errors with these roller-coaster stock markets that you have tried out. You have finally decided to get serious and get into something that is rock-solid and will help you a great deal with your retirement money. When you do enough research, you will realize that there are some tricks that you can adopt that can, in the long run, help you to squeeze better returns from some of the investments that are mostly considered to be of low-risk.
You will not have to be limited to the rates posted by GIC bank offers. Instead, you can try out these tricks to realize best GIC rates and hence better returns without having to risk much.
- Going online
It will most likely be a guarantee that you will never get the best GIC interest rates from that local bank near you. You need to realize that banks are not the only players in this game. You simply need access to the internet, and voila, you are good to go. You will never have to leave the comfort of your home to go to the banks. Many websites allow you to make GIC comparisons and even term deposit rates among different banks, trust companies, credit unions, and also life insurance companies. One website, the Cannex Financial Exchanges, has a list of more than 60 institutions and their rates on its site that can work as a guide towards identifying the best institution with the best GIC interest rates. You can use a broker to get the rates of these institutions as the public doesn’t have access to this data.
- Deposit brokers
You may know about mortgage brokers, but probably never heard of deposit brokers. Well, deposit brokers do almost the same thing as mortgage brokers, only that deposit brokers dig the insurance markets to find the highest GIC interest rates, while mortgage brokers look for the lowest mortgage rates. These are the people who will shop the GIC insurance market to find the best interest rates in the current market for you as their clients. The deposit broker’s fees are usually paid by the financial institutions and not the clients. The Registered Deposit Brokers Association (RDBA) represents over 1,600 brokers across the country. You can use their website, rdva.ca, to search for any deposit broker that may be available in your area. You will realize deposit brokers quoting rates of up to 2.7%, while major retail banks are offering rates, no higher than 1.85% for the same term GIC.
- Better rates
It is a guarantee that a deposit broker will get you much better rates compared to those clients that ask for the same product directly. You will realize many deposit brokers even spread their client’s deposits around different institutions to have their clients cover completely by the provisional and the federal deposit insurance limits as well. A deposit broker will even make a guaranteed investment certificate “ladder” that he or she can use to maximize returns.