Investors may feel like they pay no fees when investing in Guaranteed Investment Certificates (GICs).
The truth is, the interest you pay on a GIC is much less than what the bank earns when your money is invested in loans or mortgages.
The difference the bank retains is called the “spread”. The money earned on the spread helps the bank cover its costs and make a profit. So while there is no charge when you buy a GIC, the bank still makes money with your money.
For more information on Guaranteed Investment Certificates:
Curtis F. Dudley
Registered retirement advisor, certified professional in financial planning
Financial advisor, mutual fund representative,
100-1113 Jade Crt. Thunder Bay, Ontario P7B 6M7
Phone (807) 345-6363 | Fax (807) 345-0741 | Mobile (807) 472-8552 | Free (800) 465-3923
[email protected] | investorgroups.com
Investors Group Financial Services Inc.
Member of the Power Financial Corporation group of companies