With the recent roller coaster ride money and stock markets took, many people are re-thinking their investment plans and what to include in their portfolios. No one wants to lose their hard-earned money to the whims of the markets. One safe investment plan is the guaranteed investment certificates that ensure you get your money back with good interest rates in a fixed period. GIC rates can vary though and if markets rise, you could end up making less. Here is how you can move with the times.

At the time of investing in GICs, you should be aware that you could put your finance in either for a short-term period or long term. Long terms usually end in five years while the shortest you can keep your money in this is one year.

Both options are good depending on how much you want to invest. The minimum is USD 500; you fix the upper limit. How long you want to keep your money in here also depends on if you can afford not to have access to your funds in here.

Big time investors who want long-term steady growth without risk would not mind taking the long-term route in GICs. For the investor who is looking at regular or yearly income, the one-year investment plan might work. There is good and bad in both. While the one-year investor is restricted to plan future growth, the long term one will not be able to take advantage of higher rates.

To resolve this issue, you should sit with your investment consultant and figure out what the returns would be for one year as against for five years. Obviously, what is higher would be more beneficial for you. Nevertheless, consider the facts as well.

Reality is one factor to take into consideration so check with the experts what the projections are for the markets and make your decision along with this information. Naturally, one will not be able to get a fixed idea about the latter. So, weigh your options keeping in mind both market factors and earnings from long-term or short-term investment in GIC.

If you look at the other ways of earning an income from your sitting funds, you will see that GIC is actually one of the best bets. For those who have just started or do not have too much money to spare or even for those who might not have a backup plan, you can rely on this.

There might be one small hitch with the GICs. That is, if one decides to pull out your money, one will have to pay a fee or service charge for doing so. This charge will be huge. It would be better to allow the money to bake and let the interest accrue. Should market rates jump and leave you behind, that scenario would be better than markets falling and losing all your money in a risky venture, if you were to invest in one. GIC rates are usually fixed; it is only when the investment is subject to changes in the indices that they can be affected.

Author Bio: It’s a great time to be shopping for a house with exceptional mortgages available from reputable credit unions. For extra financial security, have a look at current GIC rates.

Category: Finances
Keywords: GIC rates, investing, investment, finance, financial institution