Long-term GIC

By: Andrew Moor, Chief Executive Officer, Equitable Bank

Opportunity Knocks with CDIC Changes

With the marketplace in a state of persistent volatility, Financial Advisors are searching for solutions that provide a higher level of stability within client portfolios, while continuing to satisfy the need for income.

A largely overlooked alternative has emerged following major reform instituted earlier this month by the Canada Deposit Insurance Corporation (CDIC), which expanded coverage of eligible deposits held in GICs with terms greater than five years – marking a significant transformation for Canadians. Clients can finally benefit from the guaranteed (and typically higher) rates of a long-term GIC with government backing to boot.

It’s a particularly fitting solution for aging Canadians – especially those in the pre-retirement or retirement stages – who require steady cash flow from their investments to sustain their monthly living costs, without the risk of capital losses associated with equities and bonds.

With our help, this represents a clear opportunity for you to provide your clients with the peace of mind they crave in the current environment. We’ve built on our existing suite of GICs to launch new 6-10 year terms, locking in the high rates Financial Advisors have come to rely upon from Canada’s Challenger BankTM – for longer.

We’ve Got You Covered: Equitable’s Long-Term GIC

With the Equitable Long-Term GIC, Financial Advisors can access our competitive, guaranteed rates for up to 10 years, helping to instill confidence, preserve and grow wealth. The principal is 100% guaranteed until maturity, reducing risk further for a more balanced, and resilient, portfolio overall.

In addition, the recent CDIC changes have made deposits in our long-term GICs eligible for CDIC insurance, providing even more safety and surety.1

From retirees to younger couples looking to save for major expenses down the line, our new long-term GICs can be used efficiently across your book to provide security for the long haul. In terms of strategy, consider laddering GIC maturity dates among the range of our term options – and reinvesting into a 10-year term (which generally earns a higher rate), as each GIC matures.

Broad Suitability:

  • Investors who value the stability and security of a fixed-term investment (e.g., retirees)
  • Canadians wanting to save for future goals (e.g., retirement, college tuition)
  • Clients willing to lock-in deposits for longer terms
  • Investors seeking portfolio diversification for a more balanced portfolio overall

Equitable Bank offers a full suite of GIC terms and payment options to suit clients’ diverse needs, while helping to control portfolio volatility – and produce steadier returns over time.

All of our GICs are offered by Equitable Bank, and its wholly owned subsidiary, Equitable Trust. Both issuers are CDIC members, so eligible deposits held in each entity are protected separately, up to applicable CDIC limits and policies.

ProductTermMinimum InvestmentIssuersCDIC Eligibility
Long-term GIC6-10 years (non-redeemable)$1,000Equitable Bank (EQB)

Equitable Trust (ETR)

Yes, effective April 30, 2020

Learn more about Equitable Bank, and our comprehensive GIC offering.

For more effective tools and strategies to enrich your practice, or to find out whether the Equitable Long-Term GIC is right for your client, contact us at wealthsolutions@eqbank.ca

1 Deposits are eligible for CDIC coverage, up to a maximum of $100,000 per insured category, subject to CDIC’s limits and policies. Please visit the CDIC website for more details. .