Q:

Are there different types of GICs?

A:

Quick Answer

There are five investment options from which to choose when picking the right guaranteed investment certificate, according to the Bank of Montreal. Guaranteed investment certificate options include cashable investments, noncashable investments, income-generating investments, U.S. dollar investments and market-linked investments.

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Full Answer

Cashable guaranteed investment certificates are ideal for those who do not wish to lock-in their money long-term and think that they might need access to their funds, explains the Bank of Montreal. Noncashable guaranteed investment certificates are ideal for those who are comfortable with locking their investments in to achieve short- and long-term investment goals. Income-generating guaranteed investment certificates are ideal for investors who wish to supplement their retirement income. U.S. dollar guaranteed investment certificates help simplify the investment needs of persons who frequently travel to the United States. Market-linked guaranteed investment certificates have the potential for higher returns and earn those returns based on the performance of the equity markets.

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