BUSINESS OPINION – Bill’s Blog – Insurance GIA vs Bank GIC

Chilliwack – Bill’s Blog | March 2, 2023

It has been over 15 years since you could get a decent return on short-term money with guarantees. Today, I want to educate you on the difference between a Life Insurance Guaranteed Investment Account (GIA) and a Bank Guaranteed Investment Certificate (GIC). You will discover the advantages of using a GIA are significant on multiple fronts. Also, my carrier provides liquidity (not locked into a term) and often at much higher rates than a bank. So let’s look at the main advantages and features of a GIA vs GIC.

• I have already mentioned liquidity before the term is up. With a GIA, you can redeem at any time***note; there would be a small fee for early redemption. I provide my clients with a strategy so there would not be fees. With most Bank GIC, there is no early redemption.
• Because a GIA is an insurance contract, you receive the beneficiary designation with several significant benefits. The money stays outside of your estate (most estates settle between 6 months to 2 years) and is not subject to probate or taxes, and the transfer is tax-free (in almost all cases, unless it is an RRSP/RRIF). The money is paid to your desired person, persons or charity in most cases in 30 days, and it is private.
• Using a GIA has another great benefit. It has the possibility of being creditor protected.
• One of the best benefits is superior returns, and I will give you an updated comparison between a sample of many big banks, smaller banks, credit unions and life insurers. I will use a 1 Year Term.
• Big Banks: Redeemable Min. Deposit Rate

1. BMO No $1000 4.25%
2. Scotia No $1000 2%
3. CIBC Yes $1000 .2%
4. National No $1000 2%
5. RBC No $1000 3%
6. TD No $1000 4.65%

• Small Banks:  Redeemable Min. Deposit Rate

1. Cdn. Tire No $1000 3.55%
2. ManuBank No $2500 4.5%
3. PC Bank No $500 2%
4. HSBC No $500 3.5%
5. Tangerine No $1 4.65%

• Credit Unions: Redeemable Min. Deposit   Rate

1. Coast Capitol No $1000 3.95%
2. First West No $5000 4.75%
3. VanCity No $500 4.5%

• Life Insurers:  Redeemable Min. Deposit Rate

1. Desjardin No $1000 3%
2. Empire Life Yes $500 4%
3. Equitable No $1000 4%
4. IA Yes $1000 4.7%
5. Sun Life Yes $1000 3.85%

NOTE: Rates can Vary Weekly

So, there you have it, a good sampling of many financial institutions and what returns they are willing to pay you for your deposits into a GIC or GIA. If you are unhappy with what your bank, credit union or insurer is paying you, don’t hesitate to contact me for the superior benefits of a GIA with the best rate in BC.

Please join us on March 18 at 10 AM PST (45-minute webinar with Q&A to follow. Josef Schachter has over 40 years of experience in the financial markets as a top analyst. Josef is a regular BNN energy analyst, and recently he was a keynote speaker at the World Outlook Conference in Vancouver, BC. Josef will share in this presentation why he believes we have entered a New Energy Supercycle and will share some possible opportunities in the Canadian energy space. Please register for this event:

You are invited to a Zoom webinar. 

When: March 18, 2023, 10:00 AM Vancouver 

Topic: Join Josef Schachter (Energy Expert) as he discusses the New Energy Supercycle and Opportunities.

Register in advance for this webinar:

https://us06web.zoom.us/webinar/register/WN_LJtUBtrfQ-qo5mBE6TMqcA

After registering, you will receive a confirmation email containing information about joining the webinar.

All the best in 2023,

Bill Westmacott, Owner

fivefoldfinancial.ca