Basic GIC Question
Just curious about something so correct me if my logic is incorrect.
Guaranteed Investment Certificate (GIC)
(short-term)
Term Rate
30 days 0.66%
60 days 0.81%
90 days 0.96%
120 days 0.96%
180 days 1.00%
275 days 1.05%
http://www.tdcanadatrust.com/GICs/GICTable.jsp
Simple short-term GIC. From my understanding, you get the rate stated upon maturity. I'm just wondering why anyone would take the 120 days over the 90 days when the rates are exactly the same? You end up with the same interest but one ends sooner so it would be advantageous to always go with 90 days over 120 days. If you won't need your money for 120 days, wouldn't it be better to lock in the 90 days and then lock in another 30 days at 0.66% with your original principal + interest earned from the first GIC. Maybe I'm missing something here, so I'm just curious if my logic is correct.
I just came across this as I want to park a large sum of money for a few months before I make a large purchase and I figured a short term GIC would suffice for simplicity over a bond of some sort. Advise if otherwise--thanks!
Guaranteed Investment Certificate (GIC)
(short-term)
Term Rate
30 days 0.66%
60 days 0.81%
90 days 0.96%
120 days 0.96%
180 days 1.00%
275 days 1.05%
http://www.tdcanadatrust.com/GICs/GICTable.jsp
Simple short-term GIC. From my understanding, you get the rate stated upon maturity. I'm just wondering why anyone would take the 120 days over the 90 days when the rates are exactly the same? You end up with the same interest but one ends sooner so it would be advantageous to always go with 90 days over 120 days. If you won't need your money for 120 days, wouldn't it be better to lock in the 90 days and then lock in another 30 days at 0.66% with your original principal + interest earned from the first GIC. Maybe I'm missing something here, so I'm just curious if my logic is correct.
I just came across this as I want to park a large sum of money for a few months before I make a large purchase and I figured a short term GIC would suffice for simplicity over a bond of some sort. Advise if otherwise--thanks!