Rising interest rates might be bad news for Canadians with mortgages, but it also means higher rates on savings vehicles such as guaranteed investment certificates (GICs), prompting renewed interest in the investments.
Mahima Poddar, senior vice-president and group head of personal banking at Equitable Bank, said GICs haven't been popular in recent years, but with the rise in rates they are now more attractive and demand at EQ Bank, the bank's digital platform, has never been higher.According to rate-watching website Ratehub.ca, rates for GICs are now north of four per cent, with some offerings for five-year investments reaching five per cent.
Naveen Senthamilselvan, director of strategic initiatives at Meridian Credit Union, said GICs in the spring of last year were sitting at one to 1.5 per cent, while today they are paying four to five per cent. Senthamilselvan said a lot of investors are looking at a laddered strategy that has a portion of their money in GICs reaching maturity each year giving them the option to reinvest or reallocate some of their overall investment each year.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Monkeys under attack in Brazil amid rising monkeypox fearsTen monkeys poisoned in Brazil because of fears of monkeypox
Read more »
Monkeys under attack in Brazil amid rising monkeypox fearsSAO PAULO (AP) — The World Health Organization expressed sorrow on Tuesday for the killing of monkeys in Brazil amid fears of monkeypox contagion.
Read more »
Millennial Money: When is it OK to be selfish with money?Amid rising inflation, interest rates and recession worries, money is getting tighter for many folks — and probably for you. Yet there may be charitable…
Read more »
Millennial Money: When is it OK to be selfish with money? - BNN BloombergAmid rising inflation, interest rates and recession worries, money is getting tighter for many folks — and probably for you.
Read more »
Cost of war in Ukraine is rising, and Canada missed a key opportunity to stymie Russia's tapWe will train Ukraine soldiers, scour the world market for munitions to send them, and fly the blue and yellow flag in solidarity with Ukrainians. But when we had a chance to cripple the Russian economy, we chose not to.
Read more »