Best TFSA GIC Rates in Canada
GIC (Guaranteed Investment Certificate) is an investment that guarantees that you get your principal amount back after a fixed period of time. This means that the principal amount is not at any risk unless banking or lending institution dissolves. Otherwise, the rates differ with different banks and the return is determined by time and the rates.
Showing all 2 results
Specification: HSBC TFSA Redeemable 1 Year GIC
Best TFSA GIC Rates
Talking about the issue of best rates, a customer ought to know primarily that different institution in the banking and lending sector offer different rates. In order to identify the best rates, it is prudent to compare the rates of the various banking and lending institutions. The best rates should suit your requirements across an array of choices.
What do you mean by TFSAs?
Now, as one makes the decision to invest in understanding what TFSAs are all about is crucial TFSA, an account that exempted from taxation, is a service offered to customers with the need to save money and withdraw money completely avoiding taxes. The best offers from banks include free transfers. This means that investment incomes like capital gains and dividends are not taxed in a TFSA.
A TFSA further allows carrying forward of the balance to the following year. In Canada, this system was introduced to favor the Canadians allowing them initially to contribute up to $5000 each month but it finally went up to $5500 in the beginning of 2013.
Most of the financial institutions in Canada have the operations of TFSA available to their customers of the age of 18 years and above. Besides TFSA being a good way of avoiding taxes, one can put in different types of investments like GICs, mutual funds, and stocks.
The main advantages of having a GIC over a TFSA are, there is no tax on capital gains and interests accumulated. Another advantage is that, withdrawal if completely free and finally as stated above there is a guarantee to return of principal amount initially invested.