Saving




Automatic savings can be set up for purchasing guaranteed investment certificates. This is commonly known as Pre-Authorized Purchase (PAP), Pre-Authorized Contributions (PAC), or Pre-Authorized Debits (PAD).

Some companies will give employees a bonus in the form of a GIC. Other corporations will match employee contributions to a RRSP or Guaranteed investment certificate. Tax savings can be realized by investing expendable income into a GIC.

A GIC can be purchased that allows with-drawl at any time. Other banking institutes will charge a fee or not allow any with-drawl until maturity date. Be sure to check the policies on your particular guaranteed investment certificate. 

Some GIC's are government backed where others are funded by private investment firms and mutual funds. Investors are allowed to hold GIC's in their registered RRSP's, TFSA's, and RRIF's.

A guaranteed investment certificate is one of the safest ways to invest money. You are guaranteed your initial deposit back plus interest made over the GIC term.