Meridian 18 month non-redeemable GIC Review

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Do you own a small business? Get a high return on your short-term investment with the Meridian 18 month non-redeemable GIC.

If you want to redirect cash flow from your small business but don’t want to lock your money in for years, then you might like to check out the benefits on offer with the Meridian 18 month non-redeemable GIC. This product offers business members a 2.4% return on investment, with automatic insurance on any deposit up to $250,000.


Term18 months
Interest Rate2.4%
Insurance Coverageup to $250,000
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How does a Meridian 18 month non-redeemable GIC work?

The Meridian 18 month non-redeemable GIC is a low-risk savings plan that lets you earn a fixed rate of interest on your investment over a set period of time. The interest rate on offer is around 2.25% higher than what you’ll earn on a standard savings account, and 1% higher than what you’ll earn on many similar products.

You earn a higher interest rate with the Meridian GIC since you can’t withdraw the money you deposit into your GIC until your 18 month term is up. If you take it out early, you’ll have to pay a penalty (which is why it’s called non-redeemable).

Example of savings

Let’s say you bill $250,000 to a client and you want to start earning interest on that amount straight away. To maximize your return, you decide to put the money into a Meridian 18 month non-redeemable GIC, which offers a 2.4% return on any money you deposit.

With interest paid out yearly, you realize you can claim $6,750 in interest over 18 months. This is a much better deal than the 0.5% rate offered by your savings account at the bank, which would only allow you to claim $1,250 over the same time period.

The only difference is you need to keep your money tied up in the GIC for 18 months while you can withdraw it from the bank at any time.

What are the benefits of a Meridian GIC?

  • High interest rate. Earn a return of 2.4% on the amount you invest, which is around 2.25% higher than on a standard savings account and 1% higher than on similar GICs.
  • Short term. You’ll only have to lock your money away for 18 months to earn a decent return on interest.
  • Guaranteed return. The interest rate is fixed so you won’t need to worry about losing your principal investment with fluctuations in the stock market.
  • Low minimum investment. You can invest as little as $100 to get started.
  • Balanced portfolio. You can use this type of GIC to balance out your investment portfolio and reduce overall risk.
  • Deposits are insured. Any money you put into your GIC (up to $250,000) is insured through the Deposit Insurance Corporation of Ontario (DICO).
  • Made for small businesses. The Meridian 18 month non-redeemable GIC is tailor-fit to meet the needs of small businesses with excess cash flow.

What to watch out for

  • Non-redeemable. Once you put your money in, you won’t be able to access it in case of emergencies for at least 18 months.
  • Penalty for early withdrawal. If you take money out early, you’ll have to pay a penalty that will negate any savings on interest.
  • Interest subject to taxation. Any interest you earn on your GIC is subject to taxation if the GIC is held outside of your TFSA or RRSP.
  • Lower return. Since GICs are relatively low-risk, the interest you make is typically lower than what you might earn by investing directly in the stock market.

What should I know before I apply

Eligibility requirements

To apply for a Meridian 18 month non-redeemable 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).
  • Be a business member with Meridian.

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
  • Your business number and relevant details.

How to apply

  1. Click “Go to site” on this page to be directed to your Meridian 18 Month Non-Redeemable GIC application.
  2. Complete the application, which includes providing your name, email address, social insurance number and birth date.
  3. Review and submit your application.

Bottom line

The Meridian 18 month non-redeemable GIC is a short-term fixed-rate savings plan designed for small businesses. It offers a 2.4% return on investment over an 18 month term, with insurance on deposits up to $250,000.

Frequently asked questions about the Meridian 18 month non-redeemable GIC

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