Simplii GIC review
Lock in competitive long-term rates and get a guaranteed return of your principal with a Simplii GIC.
ou won’t ever lose your initial investment and you’ll get a guaranteed return on interest.
If you want to lock your funds into a Guaranteed Investment Certificate with competitive interest rates, a Simplii Financial GIC could be the right fit for you. Simplii offers some of the best fixed rates on the market for long-term non-redeemable GICs. The deposits you hold are automatically insured up to $100,000 and you can start investing with as little as $100.
What is a Simplii GIC and why should I consider one?
A Simplii Guaranteed Investment Certificate (or GIC for short) is a low-risk investment option if you’re looking to balance out your portfolio. These GICs offer a guaranteed return of your principal along with a competitive return on interest for long-term investments.
You will only be able to purchase non-redeemable GICs through Simplii, with terms ranging from 1-5 years. This means you’ll need to lock your investment in over a specific period of time, with no option to cash it in if you need the money.
All of Simplii’s interest rates are also fixed, so you won’t be able to take advantage of fluctuations in the stock-market. That said, the rates that Simplii gives are higher than those on offer from most ‘big five’ Canadian banks.
Types of Simplii GICs
Simplii offers a fairly limited range of GICs which are all long-term, fixed-rate and non-redeemable. Most products can only be held in non-registered accounts or RRSPs, but they won’t be eligible for other registered accounts.
Simplii has a range of long-term GICs available, with contracts lasting between one and five years. These GICs tend to offer better interest rates than most competitors.
You might benefit from this kind of GIC 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 your money out in case of an emergency.
All of Simplii’s GICs offer fixed rates so that you get a predictable and reliable return on interest. This means that no matter what the stock market is doing, you’ll take home a set rate that won’t fluctuate based on market conditions.
The only downside is that you won’t be able to take advantage of variable rates when the stock market is performing well.
If you don’t want to lock all of your money away over the long-term, you can also invest with a laddering strategy to maximize your return. For this, you’ll need to divide the total amount you want to invest by five.
Then you take the smaller amounts and invest them into five different GIC terms (maturing at one, two, three, four and five years). When each term matures, you can either re-invest the money or cash it in.
Why should I invest in a Simplii GIC?
- Low-risk product. You won’t ever lose your initial investment and you’ll get a guaranteed return on interest.
- High interest rates. You can earn higher rates on long-term investments (higher than most competitors offer).
- Deposits are insured. Simplii is insured by the Canada Deposit Insurance Corporation (CDIC), so the cumulative worth of your deposits is protected up to $100,000.
- Low minimum investment. You’ll only have to put in $100 to get your investment up and running.
- Eligible for registered accounts. All of Simplii’s GICs are RRSP-eligible, so you’ll be able to earn interest on them tax-free.
What should I look out for?
- No cashable GICs. Simplii doesn’t offer cashable GICs, so you won’t have the option to take your money out before your term is up.
- No short-term GICs. You have to lock your funds in for at least one year since there are no shorter terms.
- No variable rates on offer. Simplii doesn’t offer market-linked products, so you won’t have the potential to increase your earnings if the stock market performs well.
- Limited insurance coverage. CDIC only insures the cumulative worth of deposits held in both CIBC and Simplii accounts, which limits how much you can invest safely.
- Unable to cope with inflation. There are no GICs that offer progressively higher rates each year, so you could lose money with inflation.
- Interest subject to taxation. You’ll have to pay taxes on any GIC that isn’t held in
- No options for most registered accounts. Simplii GICs are only eligible for RRSPs, so you won’t be able to put them in RESPs or TFSAs.
How to apply for a Simplii GIC
If you think a long-term fixed-rate GIC is the right fit for you, then investing with Simplii could be a suitable choice. You can apply online once you’ve checked that you fulfill the eligibility requirements and have all the relevant information on hand.
To apply for a Simplii 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 Simplii GIC?
It’s easy to buy a GIC directly from Simplii by applying online. You’ll just need to make sure that you have an account with them, and can access your internet banking.
Feel free to check out the table above to see the rates on offer for Simplii’s products. If you like what you see, you can click through to Simplii’s website to get started. Just remember that most GICs require a minimum investment of $100.
How does Simplii compare to other banks?
Simplii is an online-only bank that mainly competes with similar banks like Tangerine, EQ Bank and Motusbank. It has a smaller selection of GICs than most of its competitors, but it offers higher interest rates than many of the ‘big five’ Canadian banks. Simplii is known to be trustworthy and reliable, in part because it’s owned by CIBC (which is one of Canada’s biggest banks).
Simplii ratings, reviews and complaints
Simplii has low ratings on trusted review sites like Trustpilot, but so do the ‘big five’ banks and many competitors. Customers who have left feedback 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.
Simplii offers a number of non-redeemable fixed-rate GICs with competitive rates. You can learn more about these products by speaking to a Simplii advisor or by clicking through to their website on the table above.