Canada Student Loans: How do Guaranteed Investment Certificates (GICs) work in Canada?

A guaranteed investment certificate, or GIC is a type of Canadian investment in which the rate of return is guaranteed over a period of time. Some types of financial products is relatively low-risk investment, and thus produce smaller gains as stocks, bonds and mutual funds. GIC is usually offered by a bank or trust. These are investment vehicles safe and secure Canadians earn interest, fixed rate, floating rate, or based on a market index.Many Canadians view the GICs good choice for a portfolio that requires security measures.
How GICs work?

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Canada Student Loans

Student Loans Company: Interest Rate Announcement

Between 1 September 2010 and 31 August 2011, the interest rate may change because it is linked to the rates charged by high street banks. The rate will be the lower of the Retail Price Index in March 2010, or 1% above the highest base rate of a nominated group of banks. As March’s RPI was 4.4%, the maximum rate of interest you may be charged between 1 September 2010 and 31 August 2011 is 4.4%.

This rate applies to all income contingent loan customers including students currently studying at university or college.

Customers will be able to monitor the rate of interest on this website and www.studentloanrepayment.co.uk and should check the rate on a monthly basis, particularly if there is a change in the Bank of England, United Kingdom base rate.

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Student Loans Company