GIF & HISA Savings Options
Guaranteed interest funds (GIFs) and high interest savings account (HISA) offer you security in the face of volatility. They are among the first products to benefit from rising interest rates and offer guaranteed returns.
Both our GIFs and HISAs also come with many interesting benefits:
• A higher, risk-free return compared to chequing accounts
• Your savings and the interest accumulated are guaranteed and cannot be affected by stock market fluctuations
• Redeemable at any time (under certain conditions for GIFs)
• Possible creditor protection and quick and easy payment at death
• No management fees
Both our GIFs and HISAs also come with many interesting benefits:
• A higher, risk-free return compared to chequing accounts
• Your savings and the interest accumulated are guaranteed and cannot be affected by stock market fluctuations
• Redeemable at any time (under certain conditions for GIFs)
• Possible creditor protection and quick and easy payment at death
• No management fees
Better Returns for GIFs and HISAs
Guaranteed interest fund (GIF) is a good alternative for those who seek stability and want to protect their capital from market fluctuations.
Combine returns and security with this investment option that allows you to save risk free and diversify your portfolio.
The high interest savings account (HISA) could be a great option too for those who wish to put money aside while waiting for the right time to invest in the markets.
Grow the money lying dormant in your bank account securely with this simple savings option that you can access at any time.
What are guaranteed interest funds?
Similar to guaranteed investment certificates (GICs) offered by banks, guaranteed interest funds (GIFs) are an investment option that offers a fixed, guaranteed interest rate for the duration of your investment. However, they offer, at no additional cost, benefits that are not available with GICs, such as quick settlement in the event of death and possible creditor protection.
Our GIFSs offer competitive returns based on market interest rates. You can choose terms of one month, one to five years or ten years. They are ideal for investors who seek stability and want to protect their capital from market fluctuations while diversifying their portfolio.
Benefits of guaranteed interest funds
Benefits specific to iA guaranteed interest funds
What is a high interest savings account?
A high interest savings account (HISA) allows you to earn higher returns on your savings with a higher interest rate than a chequing account.
Simple and accessible, this option is ideal for people who want to save risk free. For example, you can use it to build an emergency fund, save for a project or protect your money from market volatility until the time is right to invest.
At iA, opening a high interest savings account requires no minimum investment and you can access your savings at any time. Our HISA also includes all the benefits available with segregated funds, such as quick settlement in the event of death and possible creditor protection.
Overall benefits
Benefits specific to iA’s HISA
Guaranteed interest fund (GIF) is a good alternative for those who seek stability and want to protect their capital from market fluctuations.
Combine returns and security with this investment option that allows you to save risk free and diversify your portfolio.
The high interest savings account (HISA) could be a great option too for those who wish to put money aside while waiting for the right time to invest in the markets.
Grow the money lying dormant in your bank account securely with this simple savings option that you can access at any time.
What are guaranteed interest funds?
Similar to guaranteed investment certificates (GICs) offered by banks, guaranteed interest funds (GIFs) are an investment option that offers a fixed, guaranteed interest rate for the duration of your investment. However, they offer, at no additional cost, benefits that are not available with GICs, such as quick settlement in the event of death and possible creditor protection.
Our GIFSs offer competitive returns based on market interest rates. You can choose terms of one month, one to five years or ten years. They are ideal for investors who seek stability and want to protect their capital from market fluctuations while diversifying their portfolio.
Benefits of guaranteed interest funds
- Reduce the risks associated with market volatility
- Improve portfolio diversification
- Guarantee 100 % of the capital at maturity
- Offer competitive returns
- A great alternative to bonds
- Available in all types of registration (RRSP, TFSA, etc.)
- No management fees
- Both individuals and corporations can benefit from this investment vehicle
Benefits specific to iA guaranteed interest funds
- Redeemable at any time*
- May include creditor protection
- Allows for quick and easy payment in the event of death thanks to beneficiary designation
- No estate settlement costs
What is a high interest savings account?
A high interest savings account (HISA) allows you to earn higher returns on your savings with a higher interest rate than a chequing account.
Simple and accessible, this option is ideal for people who want to save risk free. For example, you can use it to build an emergency fund, save for a project or protect your money from market volatility until the time is right to invest.
At iA, opening a high interest savings account requires no minimum investment and you can access your savings at any time. Our HISA also includes all the benefits available with segregated funds, such as quick settlement in the event of death and possible creditor protection.
Overall benefits
- Offers higher returns than a chequing account
- Reduces the risks associated with market volatility
- Available in all types of registration (RRSP, TFSA, etc.)
- Improves portfolio diversification
- An excellent option for building an emergency fund
Benefits specific to iA’s HISA
- Can provide protection against creditors
- No estate settlement costs
- Allows for quick and easy payment in the event of death
- No minimum investment required
- Allows withdrawals at any time and at no cost
- No management fees
What is a TFSA?
Tax-free means more savings - Whether your savings goals are short-term or long-term, a TFSA can help you fast-track your savings
A Tax-Free Savings Account (TFSA) is a savings option that allows you to grow your savings without ever paying tax on the growth within your account. This is unique from traditional savings accounts where you are required to pay tax on the growth earned by your investment. Even in a Retirement Savings Plan (RSP) the growth is taxed when the money is withdrawn from the RSP. With a TFSA, no matter how much your investments earn, you will never pay tax on the growth.
How much can I contribute to a TFSA?
Each year residents of Canada who are at least 18 years of age are allowed to invest up to $6,000* into their TFSA, in addition to any previously unused contribution room. Deposits made into a TFSA are made with after-tax dollars meaning that withdrawals can be made at any time on a tax-free basis. Once a withdrawal is made, the contribution room is regained in the year following the withdrawal.
When you invest in a TFSA, all the earnings are tax-free. This allows you to save more and reach your goals faster.
For example, if you were to make a $200 TFSA contribution each month for 20 years you would have contributed a total of $48,000 and earned $43,116 in tax-free growth. In comparison to a non-registered account where all investment income is taxable, you would save an additional $10,926 by investing in a TFSA.
Who should have a TFSA?
With so much flexibility, the TFSA is a savings option from which most Canadians can benefit. At any time you can access your savings without ever paying tax on the growth, making it perfect for any kind of short-term savings goals, including:
• home renovations
• a vehicle
• a family trip
• emergency savings
A TFSA is also a great option for retirement savings for individuals who are looking for an alternate source of income during retirement, or who expect to be in an equal or higher tax bracket once they retire.
Unlike an RSP, a TFSA does not need to be converted to an income product at age 71, which makes it an ideal option for retirees who are looking for a way to save on a tax-free basis throughout their retirement.
Additionally, income from a TFSA does not affect your eligibility to receive Old Age Security (OAS), Guaranteed Income Supplement (GIS), goods and services tax (GST) credit, or other income tested benefits and tax credits.
Tax-free means more savings - Whether your savings goals are short-term or long-term, a TFSA can help you fast-track your savings
A Tax-Free Savings Account (TFSA) is a savings option that allows you to grow your savings without ever paying tax on the growth within your account. This is unique from traditional savings accounts where you are required to pay tax on the growth earned by your investment. Even in a Retirement Savings Plan (RSP) the growth is taxed when the money is withdrawn from the RSP. With a TFSA, no matter how much your investments earn, you will never pay tax on the growth.
How much can I contribute to a TFSA?
Each year residents of Canada who are at least 18 years of age are allowed to invest up to $6,000* into their TFSA, in addition to any previously unused contribution room. Deposits made into a TFSA are made with after-tax dollars meaning that withdrawals can be made at any time on a tax-free basis. Once a withdrawal is made, the contribution room is regained in the year following the withdrawal.
When you invest in a TFSA, all the earnings are tax-free. This allows you to save more and reach your goals faster.
For example, if you were to make a $200 TFSA contribution each month for 20 years you would have contributed a total of $48,000 and earned $43,116 in tax-free growth. In comparison to a non-registered account where all investment income is taxable, you would save an additional $10,926 by investing in a TFSA.
Who should have a TFSA?
With so much flexibility, the TFSA is a savings option from which most Canadians can benefit. At any time you can access your savings without ever paying tax on the growth, making it perfect for any kind of short-term savings goals, including:
• home renovations
• a vehicle
• a family trip
• emergency savings
A TFSA is also a great option for retirement savings for individuals who are looking for an alternate source of income during retirement, or who expect to be in an equal or higher tax bracket once they retire.
Unlike an RSP, a TFSA does not need to be converted to an income product at age 71, which makes it an ideal option for retirees who are looking for a way to save on a tax-free basis throughout their retirement.
Additionally, income from a TFSA does not affect your eligibility to receive Old Age Security (OAS), Guaranteed Income Supplement (GIS), goods and services tax (GST) credit, or other income tested benefits and tax credits.
Registered Education Savings Plan (RESP)
A registered contract between an individual (the subscriber) and a person or organization (the promoter). The subscriber generally makes contributions to the RESP, which earns income, paid in the form of educational assistance payments to one or more identified beneficiaries.
An RESP has a ceiling of $7200 grant or 20% matching contribution from the government of Canada.
The subscriber can contribute up to age 36. RESP provides a savings plan intended for education and related expenses while acquiring education like housing, books, fare, etc.
However, there are certain conditions that need to be met like going to 'qualified school.' The fund is also subject to market volatility.
An RESP has a ceiling of $7200 grant or 20% matching contribution from the government of Canada.
The subscriber can contribute up to age 36. RESP provides a savings plan intended for education and related expenses while acquiring education like housing, books, fare, etc.
However, there are certain conditions that need to be met like going to 'qualified school.' The fund is also subject to market volatility.
Disclaimer: This page has a combination of opinions and facts. It is up to the reader to do their own research or contact their nearest insurance council for a more comprehensive insurance information.
Why is it Important to Save Early for Your Child’s Education
Your child’s education is one of the most important investments you can make, and with today’s costs, it pays to plan.
Know What to Expect
College tuition gets more expensive every year. Tuition rates have increased at a faster pace than many other items over the past decade and it doesn’t look like they will slow down anytime soon.
1. The average student loan in Canada grew by 3.5% from 2019. In addition, student debt in the country rose by an average of $91 billion per year in the last ten years.
(RemitBee)
2. Students enrolled in Canadian undergraduate programs have spent an average of $6,693 on tuition fees for the 2021/2022 academic year.
(Statistics Canada)
Most young Canadians will pursue some post-secondary education, and according to Statistics Canada, almost half of those students will take on student loan debt to do it. In fact, with the average student loan balance estimated at $26,075.00, student loans can be a harsh introduction to the cold reality of debt for many young adult.
Your child’s education is one of the most important investments you can make, and with today’s costs, it pays to plan.
Know What to Expect
College tuition gets more expensive every year. Tuition rates have increased at a faster pace than many other items over the past decade and it doesn’t look like they will slow down anytime soon.
1. The average student loan in Canada grew by 3.5% from 2019. In addition, student debt in the country rose by an average of $91 billion per year in the last ten years.
(RemitBee)
2. Students enrolled in Canadian undergraduate programs have spent an average of $6,693 on tuition fees for the 2021/2022 academic year.
(Statistics Canada)
Most young Canadians will pursue some post-secondary education, and according to Statistics Canada, almost half of those students will take on student loan debt to do it. In fact, with the average student loan balance estimated at $26,075.00, student loans can be a harsh introduction to the cold reality of debt for many young adult.
Alternative Saving Strategy using Life Insurance
Life insurance is a powerful saving tool. However, a lot of people are still unaware on how life insurance contributions can turn into an accumulating asset. Our goal is to help Canadians save and enjoy the benefits they can get from their coverage. We design a policy in such a way that it will have cash-rich upfront and cash-rich values long term.
What sort of opportunities this asset would do for you?
-Emergency fund?
-Financing?
-Paying for college education?
-Travel?
-Destroying debt?
-Down payment on a home?
-Capital to start a business... opportunities are endless!
What sort of opportunities this asset would do for you?
-Emergency fund?
-Financing?
-Paying for college education?
-Travel?
-Destroying debt?
-Down payment on a home?
-Capital to start a business... opportunities are endless!
GROWTH Life Policy for Kids
The best way to start saving for your kids' future is by starting as early as possible because the earlier you start saving, the more time you have to compound interest.
Here are some tips to get you started:
Start with small goals and build up from there. Even if it's just $3 a day it all adds up over time.
Make sure you're putting money away in an account that is easy for your child to access once they're old enough.
This way, they can start learning about financial management early on by having control over their own savings. It'll also help them feel like they're contributing something towards their future!
GROWTH Plan is a strategy that helps you set up a tax-free savings tool for children that can outlive their lives and the future generations.
It is built in Whole life insurance that is safe and has guaranteed growth.
It is a Child’s plan where parents can save, invest, borrow money while building a solid financial base for their kids.
Here are some tips to get you started:
Start with small goals and build up from there. Even if it's just $3 a day it all adds up over time.
Make sure you're putting money away in an account that is easy for your child to access once they're old enough.
This way, they can start learning about financial management early on by having control over their own savings. It'll also help them feel like they're contributing something towards their future!
GROWTH Plan is a strategy that helps you set up a tax-free savings tool for children that can outlive their lives and the future generations.
It is built in Whole life insurance that is safe and has guaranteed growth.
It is a Child’s plan where parents can save, invest, borrow money while building a solid financial base for their kids.
Access to the fund can help families in times of emergency as the fund is not locked up compared to RESP, RRSP or another savings fund.
- Cash Value may be used as Emergency Fund
- Building wealth while having Coverage
- Encouraging financial stewardship
Above example is for illustration and informational purposes only, differences can include age, health condition, goals, amount or term of premiums in actual client's illustration.