Financial Channel

Hey people.....

First time poster, longer time reader. Found a company, not a bank which was guaranteeing 1 year locked in accounts for 5%. Any good? They also had a 10 year lock program that averaged a return of 7% guaranteed. What things should I look for? They're registered but fairly new. The rate is guaranteed as a loan to them. Sounds good to me especially with rates all guaranteed and higher than anywhere else. I saw some GIC ladders where they give you high returns, but when averaged, its only like 5-5.5%. I believe for the 10 year, it is not fully locked in. It has some what of a deferral fee structure for pulling out early.

Are they insured by the CDIC ?

Dont know. I would imagine they have reserve funds or something. I dont know how they would be insured by CDIC cause they aint a bank.

Well what company is it?

any financial institutions even though they are not a bank , needs to be insured by CDIC. I think ALtamira is insured by Manitoba and not CDIC. But like manu life, pacific and western, citizens bank etc are not the chartered banks, but they are financial institutions. So first make sure what kind of protection do they have, if u were to loose all your money.

You need to change the title of your thread. If I had known it was "another" silly question regarding GICs/savings accounts, I would not have clicked on it.

To address your question, 5% is a good rate of return if you need that money locked up for short-term purposes. If you need a more liquid investment, this would not be the option. In addition, this investment must match your goals as an investor. If this the growth component of your portfolio, you will need to re-assess them.

Welcome to RFD.

It's pretty good compared to whats out there. As for the guarantees, you would be getting a good deal. I do not know of any 10 year guarantees for 7% average and 5% 1 year. Though you could get better elsewhere, this would appeal to the very conservative. It seems better then GICs.