Savings and Chequing
Save! Save! Save! A Little Money Adds Up!
Places and Ways To Save Your Money
Passbook Account
- You would receive a booklet showing all of your deposits, withdrawals, and interest.
- The average interest rate is generally lower at banks than at credit unions.
- Your funds are easily accessible.
Statement account
- These are essentially the same as a passbook account, except you would receive monthly statements instead of a passbook.
- These accounts are usually accessible through 24 hour automated banking machines (ABMs).
- The interest rates are the same as a passbook account.
- Your money is easily accessible.
Guaranteed Investment Certificate (GIC)
- A type of debt security sold to individuals by banks and trust companies
- Cannot typically be cashed out until the stated redemption date
- Pay interest at fixed rates
- Safe investment with no dependency on stock market fluctuation
- Guaranteed return
Cashable GIC’s
- One year term
- Can be cashed out after 30 days of investment
- Rates typically lower
Accelerated rate GIC’s
- 5 year term
- Annual interest rate increases each year
- Typically offers option to cash in and re-invest if rates go up
Stock indexed GIC’s
- Principle is guaranteed
- Profit based on stock market fluctuation
- Can typically be invested in your choice of the Canadian, U.S. or international stock markets
- Typically non-redeemable and non-transferable
Many financial institutions offer additional specialty GIC products that are specific to the bank. Contact your local bank to get more information.
