Motusbank GIC review
Invest in a motusbank GIC to maximize your savings and earn competitive interest rates.
GICs give a guaranteed return of your principal, so you will never lose your initial investment.
If you’re looking to guarantee your principal and lock in high interest rates on your investment, then a motusbank GIC could be just the ticket. motusbank offers some of the best fixed rates on the market for long- and short-term non-redeemable GICs.
All deposits are automatically insured up to $100,000 and can be held in either a registered or non-registered account. And the best part is, you’ll only need a minimum investment of $100 to get started.
What is a motusbank GIC and why should I consider one?
A motusbank Guaranteed Investment Certificate (or GIC for short) is a low-risk investment that offers a guaranteed return of your principal along with a competitive return on interest. You can purchase only non-redeemable GICs through motusbank, which means you’ll need to lock your investment in over a specific period of time.
The GICs on offer have terms ranging between 30 days and 5 years and come with fixed interest rates, which means you won’t be able to invest in a market-linked product. That said, the rates that motusbank gives are higher than those on offer from the “Big Five” Canadian banks.
Types of motusbank GICs
All of motusbank’s GICs are non-redeemable with fixed interest rates. You can hold most of its products in registered or non-registered accounts, and you’ll only need $100 to start investing.
Motusbank offers non-redeemable short-term GICs that are locked in for a term lasting from 30-270 days. Rates for these GICs sit around 1.80% to 2.20%, depending on the length of time you invest your money. These are some of the highest rates on the market for short-term GICs.
Even though these GICs aren’t cashable, they can be a suitable investment if you may need to access your money in the near future. They offer higher rates than most cashable GICs, and you can set your term for as little as 30 days. This means the money you put in won’t be locked away for years, and you’ll only need to wait a short time to access it in case of an emergency.
Motusbank has a range of long-term non-redeemable investments that you can choose from. These GICs have terms from 1-5 years and offer much higher interest rates than competitors (rates typically sit around 2.30% to 2.70% depending on the length of your term).
These GICs can be a good fit if you have a lump sum of money you know you won’t need to access for a while. But you should avoid them if you might need to take that money out in case of an emergency.
Motusbank also offers a hybrid GIC called an Escalator GIC, which gives a fixed rate of return over a three- or five-year term. The rates increase each year, so you can make more money the longer your funds are invested.
But you also have the flexibility to withdraw your funds on an annual basis. These GICs usually offer a return around 2.55% to 2.80%.
Why should I invest in a motusbank GIC?
- Low-risk product. GICs give a guaranteed return of your principal, so you will never lose your initial investment.
- High interest rates. You can earn around 2.75% on long-term investments and around 2.30% on short-term investments (which is higher than the competition).
- Many different terms. Terms last between 30 days and 5 years, so you can pick the time period that works best for your finances.
- Deposits are insured. Motusbank is a member of the Canada Deposit Insurance Corporation (CDIC) so you’ll be insured for deposits up to $100,000.
- Low minimum investment. You’ll only have to put in $100 to get your GIC up and running.
What should I look out for?
- No cashable GICs. All of motusbank’s GICs are non-redeemable, which means they’ll be locked in for the term specified.
- No variable rates on offer. Motusbank doesn’t offer market-linked products, so you won’t have the potential to increase your earnings if the stock market performs well.
- Unable to cope with inflation. If you lock your investment in over three to five years, your interest rates may not be able to keep pace with inflation and you’ll lose money.
- Interest subject to taxation. You’ll have to pay taxes on any GIC that isn’t held in a registered account like an RRIF, TFSA or RRSP.
- No options for RESPs. You won’t be able to put any of motusbank’s GICs into your Registered Education Savings Plan (RESP).
How to apply for a motusbank GIC
If you think a motusbank GIC is the best fit for you, you can apply online quickly and easily. You’ll just need to make sure you meet the eligibility requirements and have all the relevant documents on hand.
- Eligibility requirements
- To apply for a motusbank GIC, you will need to meet the following criteria:
- Be a Canadian citizen or permanent resident who is at least 18 years old (19 in some provinces)
- Have a valid email address and a minimum of $100 to invest.
- You will also need to provide the following documents and information:
- Your name, residential status and contact information
- Your social insurance number and date of birth
- Your email address and phone number
How can I buy a motusbank GIC?
You can buy a GIC directly from motusbank by applying through their online platform. Feel free to check out the table above to see the rates that it offers on popular products. If something piques your interest, you can click through to motusbank’s website to register as a member. Just remember that most GICs require a minimum investment of $100.
How does motusbank compare to other banks?
Motusbank is an online-only bank that competes directly with similar banks like Tangerine, EQ Bank and Simplii Financial. It offers higher interest rates on many of its GICs than the “Big Five” Canadian banks and some of its competitors. It’s also known as one of the more trustworthy and reputable online-only banks because it’s owned by Meridian Credit Union, which is the biggest credit union in Ontario.
Motusbank ratings, reviews and complaints
Motusbank has very few ratings on trusted review sites like Trustpilot or NerdWallet. Customers who have left feedback on similar sites seem to appreciate the ease of mobile banking and the high interest rates. But some voice concerns over long response times and inadequate customer service.
Motusbank offers a number of non-redeemable fixed-rate GICs with some of the highest interest rates on the market. You can learn more about these products by speaking to a motusbank advisor or by clicking through to their website on the table above.