CASE STUDY
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Imagine you've inherited $25 000 and you plan on using it to pay for your post-secondary education fees (in 2-3 years).
With Scotiabank, there are numerous investment options.
With Scotiabank, there are numerous investment options.
GUARANTEED INVESTMENT CERTIFICATE (GIC)
Guaranteed Investment Certificates (GIC) are investments held for a fixed period of time that offer a fixed interest rate. They are low-risk, low-return investments.
The GICs that Scotiabank offers are:
The GICs that Scotiabank offers are:
- Cashable GICs
- Non-Redeemable GICs
- Accelerated Rate GIC
- The Ultimate Laddered GIC
- GIC with Flex
- Scotiabank Index Powered GIC
- Scotiabank Equity Powered GIC
MUTUAL FUNDS
Mutual funds are a pool of funds gathered from numerous investors. A money manager will take those funds and use it to invest in items like stocks and securities. When these funds generate income, the income is distributed to the investors of the mutual fund.
The short-term mutual funds Scotiabank offers are primarily based on government-issued securities.
They include:
The short-term mutual funds Scotiabank offers are primarily based on government-issued securities.
They include:
HIGH INTEREST SAVINGS ACCOUNT
A high interest savings account is an investment that has virtually no risk. The bank defaulting is one of the only reasons you would lose your principal. It is highly liquid, so you can withdraw your money at any time. To learn more, see the Savings Accelerator Account
PRECIOUS METALS
Gold, silver, platinum, and palladium are precious metals available for purchase from banks. A fair amount of wealth can be generated from investing in these metals if their prices rise sharply.
At Scotiabank, you can buy bars or coins of gold, silver, platinum, and palladium, as well as certificates of purchase.
conclusion
In this case, the best investment to make would be to invest in a GIC with Flex. With an interest rate of 1.7%, it provides the highest return out of savings accounts, mutual funds, and other GICs. Furthermore, it matures in 2 or 3 years, which perfectly suits your time requirements. In this case, it's best not to invest in precious metals because it is very risky. The prices of platinum, silver, and gold are currently decreasing, and there are no guarantees that you would be able to sell the metals at a higher price than what you bought them at.