How to Maximise GIC Returns

I recently had some short term money to invest. I wanted to get the best GIC rate for the same. Having seen earlier how banks pay different rates of interest, I thought of getting quotes from them for my own deposit.

A few days before I was to get a cheque for a good amount of money, I started shopping for the best GIC rate. I went to as many as 5 banks in 2 days. It was not easy to get appointment right away. But being a question of getting deposits, I usually got an appointment right away.

I told each bank upfront that I am out shopping for a better rate of interest. And whosoever provides me the best rate, will get my money. All these banks offered me varied rates ranging from 3.5% to 4.30%. Obviously I deposited with the bank which payed me 4.30% for 30 days (renewable).

In fact I made 2 deposits. One for 90 days and the other for 30 days at the same rate of interest. With GIC, the minimum period of deposit is 30 days.

The above indicates that one should never rely on what just one bank offers. They have a cushion which they can use if dealt with rightly. They always have a little flexibility.

So if you got some short term funds and want to put them away for a while, you can make a little bit more on your money. Shop around and you will make a little extra money.

Never rely on one bank. Keep contact with 2 to 3 banks and always shop for best services.