Gics And You: Navigating The Td Direct Investing Landscape

GICs, or Guaranteed Investment Certificates, are a type of debt market security issued by Canadian banks and trust companies. They are typically considered a safe way to save money, as your initial investment is protected and often earns a guaranteed rate of return over the term of your investment. GICs can be purchased through TD Direct Investing, either online or through the WebBroker trading platform. TD offers a range of GICs, including Cashable GICs, Non-Cashable GICs, and U.S. Dollar GICs, with terms ranging from 30 days to 5 years.

Buying GICs through WebBroker

To buy GICs through WebBroker, you'll first need to log in to your account. From there, you can access GIC order entry by clicking the Buy and Sell quick launch icon on the top right, followed by the GICs tab.

You can then choose the term of the GIC you want to buy and use the filters to narrow your search by Type, Term, and Interest Calculation Period. Once you've found the GIC you want to purchase, select it by clicking the Rate.

The next step is to enter the dollar amount you wish to purchase, keeping in mind any minimum or maximum amounts indicated for your chosen GIC. You'll then need to enter your Trading Password and Preview Order. Please note that renewal instructions are not currently available in WebBroker, so if you wish to purchase a GIC with renewal options, you'll need to speak with an Investment Representative.

Finally, carefully confirm the details of your order and, when you're ready, click Agree & Send. You can check the status of your order by going to Order Status.

GIC order entry is available Monday to Friday from 9 am to 4 pm Eastern Time, excluding statutory holidays.

Cashable GICs

A cashable GIC could be a good option for an emergency fund or when saving for a big purchase, such as a down payment on a home, as there is no risk of losing the initial investment. They can also be useful in a rising interest rate environment, as you can easily withdraw your money and reinvest it to take advantage of higher rates.

When considering a cashable GIC, it is important to compare interest rates, locked-in periods, minimum redemption amounts, early redemption schedules, and minimum investment requirements. While cashable GICs offer a guaranteed rate of return and principal protection, they may not be suitable for those willing to take on more risk for higher potential earnings.

Non-Cashable GICs

One of the key features of Non-Cashable GICs is that they cannot be cashed in before the maturity date. This means that your funds are locked in for the specific term you have chosen. As a result, Non-Cashable GICs generally offer higher returns than Cashable GICs. This makes them an attractive option for those willing to commit their funds for a longer period.

When considering a Non-Cashable GIC, it is important to keep in mind that early withdrawal options are limited. Breaking the contract before the maturity date typically requires demonstrating financial hardship, and even then, it is at the discretion of the issuing financial institution. Penalties and loss of accrued interest may also apply if the contract is broken. Therefore, Non-Cashable GICs are best suited for those who are certain they can commit their funds for the full term.

TD Direct Investing offers a range of Non-Cashable GICs, including the TD Special Offer GICs (Non-Cashable). These GICs automatically renew into another TD Special Offer GIC of the same term, ensuring you don't miss out on any interest. The interest rates for these GICs vary depending on the amount invested and the term. For example, for a 14-month term, the interest rate for investments between $1,000 and $9,999.99 is %, while for investments over $100,000, the rate is %.

GIC order entry availability

GIC order entry is available Monday to Friday from 9 am to 4 pm Eastern Time, excluding statutory holidays. You can access GIC order entry by clicking on the Buy and Sell icon on the top right of the WebBroker platform and then selecting the GICs tab.

From there, you can choose the term of the GIC, as well as filter by Type, Term, and Interest Calculation Period. Once you've selected the GIC you want, click on the Rate to bring up the trade ticket. Enter the dollar amount you wish to purchase, keeping in mind any minimum or maximum amounts indicated for the GIC. Then, enter your Trading Password and Preview Order.

Review the details of your order carefully before clicking Agree & Send. After submitting your order, you can check its status by going to Order Status.

If you wish to purchase a GIC with renewal instructions, note that this option is currently unavailable in WebBroker, and you will need to speak with an Investment Representative.

GIC rate sheet

A GIC rate sheet is a document that outlines the interest rates offered by different financial institutions for Guaranteed Investment Certificates (GICs). GICs are a type of investment product that offers a guaranteed rate of return over a fixed period of time. They are considered a safe way to save money as the initial investment is typically protected.

TD Bank Group

• TD 1-Year Cashable GIC
• TD 3-Year Premium Cashable GIC
• TD 1-Year US Dollar Cashable GIC

Scotiabank Canada

• Personal Redeemable GICs (12-month term): 10.00% up to 50.00%†
• Market Linked GIC, Scotiabank Canadian Top 60 (24-month term): N/A
• Long-term Non-Redeemable GICs (5-year term): Varies based on customer package

Financial Services Group

• IA Financial High Interest Savings Account: 4.2%
• Manulife Advantage Account: 2.60%
• Manulife Advantage Account- Corporate: 2.85%

The above rates are provided for informational purposes only and may not be current. It is important to note that GIC rates can vary depending on the financial institution, the term of the investment, and other factors. When considering a GIC purchase, it is always recommended to refer to the latest rate sheet and speak with a financial advisor to understand the specific rates and terms offered.

Frequently asked questions