Term Deposits / GICs

Is a Comtech Fire Term Deposit / GIC the right investment for you?

At Comtech Fire we offer a variety of term deposits / GIC certificates ranging from one month, three months, six months and longer terms of one, two, three, four and five years.  You can start your investment with as little as $500 (registered) or $1000 (regular) and feel confident about guaranteed growth as your rate is fixed for the term. In addition, your Credit Union also offers the highest-value term deposit / GIC rates in comparison to the big banks.

Looking to get the most out of your term deposit / GIC investment?  You may want to consider “Laddering” them.

When you ladder your term deposits / GICs you start by spreading your money in equal parts, across a range of terms, from 1 to 5 years.  For example, if you have $41,000 to invest, you would invest $8200 for one year, 2 year, 3 year and so on.  You now have five term deposits / GICs worth $8200 invested for the next one to five years, each maturing in a different year.  As each term deposit matures, you reinvest those funds in a new 5 year term deposit and repeat this process year after year.  This ensures you capitalize on receiving the top term deposit / GIC rate each year.  If you’re nervous about investing for five years, you can build a shorter ladder, say for three years.  Laddering provides you with less risk and a higher chance of better returns because your entire investment isn’t renewing all at once, possibly at a lower rate.

With laddering your term deposits / GICs, you also have the added flexibility of having the annual interest earned from one or all five term deposits / GICs credited to your day-to-day account for additional income or you can reinvest it for greater returns. In the event that you need funds in any given year, you always have a term deposit / GIC maturing each year.

Below is an example of a 5 Year ladder.  The total Investment of $41,000 is divided into 5 term deposits / GICs of $8200 each.

 * Rates shown are for illustrative purposes only.

Term Rate Amount Invested
Interest/Income earned
1 Year 1.45%* $8200 $118.90
2 Year 1.55%* $8200 $127.10
3 Year 1.75%* $8200 $143.50
4 Year 1.95%* $8200 $159.90
5 Year 2.25%* $8200 $184.50
Total $733.90
 * Rates shown are for illustrative purposes only.