In order to find superior interest rates on guaranteed investment certificates, consumers should consider looking beyond big six banks such as RBC, BMO, CIBC and TD, explains CBC News. Many websites, such as RateHub.ca, RateSupermarket.ca and Cannex Financial Exchanges, provide investors with comparative tools to identify favorable deposit rates from not only banks, but from credit unions, trusts and life insurance companies.
RateSupermarket.ca allows prospective buyers to input their postal codes to determine their eligibility for various offerings, and then select a preferred GIC term length in months or years, intended investment amount, and desire for a compounded interest feature, as noted on the company website. Moreover, users can look for GICs with early redemption options and can filter by eligibility for registered status as a part of RRSPs, TFSAs or RRIFs. When uncertain about the details of the investment products they are purchasing, consumers should ask about these types of features, including minimum deposit amounts and protection under the federal government's Canada Deposit Insurance Corporation program for financial institutions that are registered with the Registered Deposit Brokers Association, according to the CBC.
Consumers can also make use of deposit brokers, which act similar to mortgage brokers in helping clients seek out the most favorable GIC terms, notes the CBC. Such brokers can also assist in maximizing returns and investment flexibility through strategies such as "laddering," which involves using financial instruments from several borrowers to create staggered maturity dates. However, many institutions, including most large banks, do not work with such brokers.