Investment Products: GIC's

Algoma Financial Services offers Guaranteed Investment Certificates from both banks and insurance companies. Terms range from 1- 5 years.

As there are differences between them, it is important to know the differences.

Banks

Up to certain limits, both your original investment, and the interest is fully guaranteed and backed by the Canada Deposit Insurance Corporation.

We offer extremely attractive rates from Manulife Bank, Laurentian Bank, National Bank of Canada and B2B Trust.

Insurance Companies

GICs offered through an insurance company offer competitive rates, and, because they are "annuities", provide you with some advantages to GICs offered through a bank.

1. Interest earned is reported as "annuity income", so if you are 65 or older, the interest you accrue is eligible for the pension income tax credit.

2. Creditor protection- your investment is protected from potential creditors when you name a family member as beneficiary.

3. Ability to bypass probate- insurance company investments include the option to name beneficiaries. That means you don’t have to specify those who will inherit these investments in your will- you can do it within your GIC. In addition, costly probate fees are avoided should you pass away. The proceeds would pass directly to your beneficiaries and bypass your estate and probate.

For more information and to get today’s best rates, email or call us at 705-949-1316