- Interest rates: The interest rates on cashable GICs are generally lower than non-cashable GICs due to the added flexibility they offer.
- Withdrawal restrictions: Although cashable GICs allow you to withdraw your funds before maturity, there may be some restrictions. For example, some cashable GICs only allow you to make a certain number of withdrawals per year or require you to maintain a minimum balance.
- Maturity date: Cashable GICs still have a maturity date, which is the date when the GIC term ends, and you can redeem your investment without penalty.
- Deposit insurance: Like all GICs, cashable GICs are typically insured by the Canada Deposit Insurance Corporation (CDIC) or another government-backed insurance program. This means that your investment is protected up to a certain amount in the event that the financial institution holding your GIC fails.
- Advantages: The primary advantage of cashable GICs is their flexibility. They allow you to access your funds without penalty if you need them before the maturity date. They can be a good option if you're saving for a short-term goal or if you want to keep your funds in a low-risk investment.
- Disadvantages: The main disadvantage of cashable GICs is that their interest rates are generally lower than non-cashable GICs. They may not be the best option if you're looking for the highest return on your investment.
Overall, cashable GICs can be a good option if you're looking for a low-risk investment that offers some flexibility. However, it's important to compare the interest rates and withdrawal restrictions of different cashable GICs before choosing one.