Key Tips on Selecting the Right Fixed Deposit for You in Quebec

You might be intending to save and grow your hard-earned money while in Quebec. But at the same time, you might want to shield your money from any risk that might happen to it. To keep your Canadian dollars secure under the auspices of a Quebecois bank, you should open a fixed deposit where you’ll give your money to your chosen bank for a specific period – though you ideally shouldn’t withdraw from it until its term expires. But as not every fixed deposit in Quebec is the same, you’ll want to apply these key tips when selecting the right one for you:

You should figure out whether to get yourself a term deposit or a GIC.

Despite Quebecois banks interchanging the two, a term deposit and a GIC – or guaranteed investment certificate – isn’t necessarily the same. In fact, you can consider them as the two types of fixed deposit that you’ll encounter once you decide to open one in any Quebecois bank.

One major difference between a term deposit and a GIC is that the former has a shorter period ranging from 30 to 364 days while that latter has a period ranging from one to ten years.

Another major difference between a time deposit and a GIC is that you can withdraw money from the former even if it hasn’t matured yet – though the Quebecois bank where you opened it might charge you a penalty for premature withdrawal – but not the latter.

As for their interest rates, both term deposit and GIC have fixed ones, though the latter can have other ones as well that change either over time or alongside stock market values.

You might want to get yourself a fixed deposit with a longer period 

To simply put it, you can choose to open either a term deposit with a period of 364 days or a GIC with a period of ten years if you want to get the most money out of your fixed deposit with interest on top.

It’s entirely up to you though if you’re more comfortable with a short or long-term fixed deposit. No one will judge you if you decide to open either a term deposit with a period of 30 days or a GIC with a period of one year.

You should also determine the minimum amount of money that you’re willing to put in your fixed deposit.

Different Quebecois banks offer different minimum deposit amounts for their fixed deposits. If you want to test the waters first, you should choose a fixed deposit that would let you place a minimum of a few hundred Canadian dollars in it. But if you feel confident about setting aside at least a thousand Canadian dollars or more in your chosen Quebecois bank, you can opt for a fixed deposit that would let you place such an amount as a minimum.

Conclusion

Assuming that you’ve already provided your personal information to your chosen bank in Quebec – most important of which is your proof of residence in the said Canadian province, you can then open a fixed deposit there. However, before doing so, you’ll want to take note of the above-listed key tips on selecting the right fixed deposit for you. After all, you’ll want your hard-earned Canadian dollars to be in the safe hands of a Quebecois bank where it would flourish until it’s time for you to cash out the entire amount that you’ve placed in your fixed deposit.

Amelia Smith

Amelia Smith believes that the key to understanding something isn’t always about how good the explanation is, but how engaged you are with the learning process. As such an integral aspect of her pieces for sites such as GoBear.com is to ensure that insurance and banking concerns of her readers aren’t tackled just in a technical sense, but also in a way that they can relate to their lives.