Who is this for?
A guaranteed interest option (GIO) may be ideal for investors concerned about market instability – in other words, people who want to make sure their investments remain secure over time. A GIO is an investment type that’s designed for people who don’t want to take any risks with their savings, meaning it could be attractive to Canadians who have a conservative investment style, such as those entering or already in retirement.
Of course, a GIO may also be useful for a younger investor who’s worried about market fluctuations and is focused on receiving a steady rate of return on their original investment over a set term.
In essence, then, a GIO is an investment that provides you with a clear picture of what your financial future will look like because the original amount invested – or the principal – is protected and the interest rate is guaranteed.