Frequently Asked Questions
Three Underlying Principles of GIC Simple:
Keep your money safe
Is my money safe?
GICs are insured by Federal and Provincial sponsored programs. GICs purchased from Canadian banks and trust companies are insured to a maximum of $100,000 per insured category by CDIC (Canadian Deposit Insurance Corporation). GICs purchased from Canadian credit unions are insured by provincial programs. For example, credit unions in Ontario are insured by DICO (Deposit Insurance Corporation of Ontario ) to a maximum of $250,000 per insured category, some of the other western provinces provide for unlimited insurance coverage.
Provincial Deposit Insurance Programs
- Province of Alberta credit unions
- Province of BC credit unions
- Province of Saskatchewan credit unions
- Province of Manitoba credit unions
- Provide of Ontario credit unions
GIC Simple allows you to construct a portfolio of GICs that generates the maximum yield while taking advantage of these various Federal and Provincial insurance programs.
What happens to my money if GIC Simple went out of business?
It will not impact you. Your investments and payments for GICs are made directly with the Financial Institution issuer which will return your principal and interest directly to you at maturity of the GIC. GIC Simple never touches your money at any time during the investment execution process or during the investment period or at maturity so in the event GIC Simple was no longer around, your investment is not affected.
At time of GIC purchase, the financial institution(s) will send you an official legal certificate confirming your purchase with the financial institution. This agreement is between the GIC account holder (ie you) and the financial institution(s).
Does GIC Simple pull my credit report when I open an account?
As part of the Government of Canada’s anti-money-laundering and finance of criminal activities law (FINTRAC), all financial institutions are required to identify the individual at time of account opening. If the identification of the account holder is not made ‘face to face’ with a GIC Simple, then “non-face to face” alternatives are permitted which include the “credit-file method” which is a three year credit check that does not affect your credit rating and/or the “dual-process method”, where again your identity (name, address, date of birth etc.) are verified via providing original copies of specific documents issued by a Canadian government body, financial account or other Canadian sources such as specific billings – ie utility or telecommunications billings (see FinTrac).
Is my personal information safe and secure?
All of your personal on-line information is kept only for the transaction record with the Financial Institution. Your data is stored using the latest encryption techniques used by financial institutions.
How much more can I earn using GIC Simple? What kind of returns should I expect?
GICs can offer higher yields than traditional cash equivalent products – chequing and savings accounts as well as bonds and money market alternatives. You can earn more than equivalent GIC terms with any of the big 5 Canadian banks. GIC Simple is connected to many of the GIC premium rates offered by Financial Institutions across Canada and you can create a customized portfolio of GICs based on your personal preferences and time horizons while optimizing yield.
GIC Simple offers the best GIC rates from many of the insured financial institutions across Canada. You have full flexibility to build your GIC portfolio of your choice within our extensive roster of Financial Institutions.
Most GICs are non-redeemable thereby locking your money into a term deposit investment from 1 to 5 years. This allows the financial institutions to pay you a better rate than most high interest savings accounts. There are redeemable GICs that offer attractive rates however they are slightly less than the non-redeemable rates.
GIC Simple provides you with the digital tools to construct an insured portfolio of GICs that meets your cash surplus or future cash needs so that you maximize the interest earned on your cash.
Does GIC Simple charge a fee for using the platform? How much does GIC Simple charge
There are no commissions or additional fees** charged to you by GIC Simple when you purchase a GIC. (**excluding bank service charges for electronic funds transfer). The Financial Institution issuers pay GIC Simple for assisting them with meeting their funding requirements.
Will GIC Simple reimburse fees?
There are no commissions or additional fees charged by GIC Simple to reimburse, however GIC Simple may provide clients with a bonus interest premium based on the amount of GICs purchased within a 12 month period. Contact GIC Simple for further information regarding our Rate Incentive Program or Introducing a Friend to GIC Simple.
Simplicity and save time
How do I open a GIC Simple account?
We recognize that some people prefer to invest with a financial advisor and some prefer to invest independently.
Simply, you can open an account directly with GIC Simple account on-line.
Q. I already have an advisor – how will GIC Simple add value?
A. The GIC Simple platform is available to the Advisor network. Your Advisor may or may not have access to our platform and if they do not, their GIC offering will likely be limited and suboptimal relative to the GIC Simple extensive list of issuers offering you premium interest rates while continuing to benefit from the same deposit insurance government programs in place.
We would be happy to speak with your advisor about using our platform.
What type of accounts can I open at GIC Simple?
You can open individual taxable accounts including Registered accounts.
Which countries does GIC Simple serve?
GIC Simple only serves Canadian residents and accounts at the moment.
Can I link my GIC Simple account with my other bank accounts?
You can easily link your personal savings or chequing account at any of the major Canadian banks with GIC Simple. You will then be able to quickly fund your GIC purchase(s) electronically via an electronic funds transfer (EFT) from your existing bank account. Proceeds from your GIC maturity will be automatically deposited electronically back into the same existing bank account.
How do I invest in GICs through GIC Simple?
Once you know the amount of funds you would like to invest and your maturity objectives, using the GIC Simple platform, you can construct a GIC portfolio for you that meets your cash flow needs while ensuring there is insurance coverage provided under the various government programs available. You would simply electronically input the “buy” purchases and create your basket using GIC Simple, and GIC Simple will execute the transactions.
GIC Simple will allow you to pay for your GIC investments electronically, directly from your bank account to the Financial Institution issuers of your choice, via EFT. GIC Simple never touches your funds.
Can I see my GIC portfolio through the GIC Simple portal?
You will be able to quickly view your consolidated GIC portfolio on your simple single secure web portal – including principal and monthly cash flow.
So you can open your new GIC Simple account, construct a model portfolio, purchase and view your complete GIC portfolio via our secure fully digital platform, anytime, on your home computer or mobile phone.
In addition, all of your GIC certificates provided by the Financial Institutions including confirmations are available at any time, available in your web based account. You can also print or download them and store them on your personal drive if you like.
GIC Simple will automatically inform you when a GIC maturity is approaching so that you can plan ahead and ensure that your cash never sleeps and is earning you the maximum at all times.
What is an electronic funds transfer (EFT)?
An EFT is a fast and simple way to issue Canadian dollar payments from your bank account to the bank account at any financial institution in Canada. The transaction is done electronically over a computerized network. EFT payments are extremely safe and sent through a secure communications channel.