TORONTO, ONTARIO — (Marketwired) — 12/16/13 — A new investment poll from BMO Bank of Montreal reveals that two-thirds of Canadians (63 per cent) expect a market correction within the next decade and more than half (51 per cent) indicate they will look for safer investment options in 2014.
“More Canadians are looking for ways to protect their money,” said Ryan ffrench, Director, Term Investments, BMO Financial Group. “GICs provide a safe investment vehicle that offers Canadian investors a flexible range of investment options and competitive returns. Canadians can have peace of mind when investing using GICs as they generate steady, predictable income and offer diversification for the overall investment portfolio.”
Mr. ffrench notes the is a unique solution that offers ongoing, competitive interest rates plus access to 25 per cent of the outstanding balance once every year. A special rate offer is in effect until December 31, 2013, where you can earn annual returns of 1.50 per cent in the first year, 2 per cent in the second year and 2.10 per cent in the third year.(i)
Purchasing a GIC and Return on Investment
According to the survey, one-quarter (27 per cent) of Canadians currently own a Guaranteed Investment Certificate (GIC), with 32 per cent planning to purchase a GIC within the next year and nearly half (44 per cent) likely to purchase additional GICs in the next five years.
Canadians- interest in purchasing GICs increases significantly as the level of return rises. For example:
“With our call that the Federal Reserve will start raising rates in the first quarter of 2016, and the Bank of Canada looking more dovish, we predict the Bank of Canada will hike rates starting in the third quarter of 2015,” said Michael Gregory, Deputy Chief Economist, BMO Capital Markets. “We believe the Bank will move cautiously to prevent fuelling too much Canadian dollar strength – likely no more than one rate increase per quarter until the Fed joins the tightening party.”
The survey also found:
Regional and Demographic Findings
(i) Interest paid annually or compounded annually and paid at maturity. Terms and conditions apply.
The survey results cited in the report conducted by Pollara are compiled from an online sample of 1,023 Canadians 18 years of age and over between November 29 and December 5, 2013. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $537 billion as at October 31, 2013, and more than 45,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.
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