We know interest rates are low, but so is inflation. People on fixed income GICs are doing themselves a disservice by accepting the rate offered over the counter at the bank. Today (July 17, 2003) the big banks are posting a five year rate of 2.80% interest paid annually. That's only $840. on a $30,000. investment. The better news is, Fiscal Agents as wholesale Deposit Brokers, can offer the very same Big Bank GIC with a higher rate. Its the very same investment certificate, carries the same CIDC insurance, but has a rate of 4.05% per annum - that equates to $1,215.00 per year.

Yes, the difference is huge. You'll be getting $375.00 per payment more. So, over a 5 year term, you'll receive a total of $6,075.00 guaranteed. That same GIC bought at your branch will only pay you $840.00 annually - totaling over the 5 years only $4,200.00. Playing with the numbers. That's $1,875.00 more or about 44.6% more money in your pocket - That's the Fiscal difference equaling the Bigger Pay GIC.

If you're transferring or making a new RRSP deposit, then the compounding effect over the ensuing years is remarkable. The impact in dollars equates to a difference of $2,145.53 on the same $30,000.00. This type of monetary difference really adds up. If margins remain the same, and the initial 5 year deposit is reinvested, say 4 more times, then over a 25 year period you will increase your nest-egg by over $21,700. without the risk. View a report of this example here.

To take advantage of this Bigger Pay GIC service, call our GIC order placement desk at 905-844-7700 and make more money.

More..

If you like messing around with numbers, we have a few interesting interest rate based calculators on board. The first two in this list are using live interest rate data from the RRSP and GIC term deposit table.

• GIC Rate and Return Calculator Is quite sophisticated in calculating interest earned and paid over the chosen periods. We've used this to generate the data for this article. The details can be found in the on line reports,
• RRSP Rate and Return Interest Calculator Illustrates the accrued interest on 2 different rates with varying terms on various deposit levels
• Short / Long Term Rate Comparison Is it better to go short or long. This tool is used to compare two different investment options you may be considering.
• Rate and Return Calculator This gizmo illustrates the amount of interest accrued on varying deposit amounts. Simply drag the slider below to change the values in the table.
  
  Check out the Financial Tools section for more calculators and work sheets.