In this article, we have discussed the BMO GIC Rates: What Are GIC Rates at BMO and What are the trends for Future? The Bank of Montreal provides various options to customers for investing their funds. The institute also offers diverse financial services. The bank started its operations in 1817, making it the country’s earliest bank. Read further to study the BMO GIC Rates.
BMO GIC Rates
The Guaranteed Investment Certificate is a program that helps people achieve their financial goals. One can choose from the various types of investments. These are cashable, market-linked, US dollar, and non-cashable investments.
The GIC provides security for the amount the investors earn as against the investments made by them. This is considered to be a safe and secure way to multiply the savings. The tenure for which a specific amount is invested remains fixed and usually has a fixed rate.
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About BMO
The Bank of Montreal is among the leading ten financial institutes in North America in terms of assets. It proudly serves more than twelve million people across the country. The bank is currently listed with the TSE and NYSE.
The institute provides customers with commercial, retail, and investment banking services, along with wealth management.
What Are GIC Rates at BMO?
The GIC has low returns due to the lower risks associated with the funds invested. The BMO GIC rate is dependent on the rate of interest charges by the BOC along with the period of the term chosen.
The rates vary as per the specific plan and its features. Presently, the highest rate is provided in investments done for one and a half years to two years at 5.5 percent for the annual interest payment. The yearly plan details have been shared in a tabular form below.
| Term | CAD 1000 to CAD 99999 | CAD 100000 to CAD 249999 | CAD 250000 to CAD 999999 |
| Between one and one and a half years | 5 % to 5.5 % | 5 % to 5.5 % | 5 % to 5.5 % |
| Between one and a half and three years | 5.3 % to 5.5 % | 5.3 % to 5.5 % | 5.3 % to 5.5 % |
| Between three to five years | 5 % to 5.35 % | 5 % to 5.35 % | 5 % to 5.35 % |
| Between five and seven years | 5 % | 5 % | 5 % |
| Seven years | 5.05 % | 5.05 % | 5.05 % |
| Ten years | 5.1 % | 5.1 % | 5.1 % |
The above rates are constant if the interest payments are to be received annually, monthly, or semi-annually. They can be changed by the financial institute, given any fluctuations in the rate of the Bank of Canada. To know more about BOC, head over to the next section.
Reserve Bank of Canada
This is the supreme financial institute in the country. The officials representing BOC formulate all the regulations related to the monetary policies. The BMO GIC rates are subject to fluctuations with any changes in the related rates of this institute.
The rate at which the bank lends to other banks in the country is 5 percent. This measure has been revised over the years. The prime rate is more than 7 % and was increased in the current fiscal year. The BOC is the sole authority that makes decisions related to issuing currency and managing other financial services as well as institutes.
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BMO GIC Calculator
Anyone who plans to invest in the BMO GIC can calculate their returns using an online tool. This tool ascertains various factors before calculating the returns. The interest in this investment is compounded, hence further increasing the revenue.
One must enter the amount they wish to invest and the desired term length. The tool shall apply the specific interest rate and calculate the total amount. It also lists the plans that the person shall be eligible for. Hence, it is advisable to calculate the expected earnings before actually investing.
What are the Trends for the Future?
BMO GIC Rates keep on changing with the market trends and inflation. Considering the FISCAL year 2020 post-pandemic and to date, the customers can find an effective transformation in the rates. The bank has more than 12 million customers to date, which generates a better score. It is ranked in the top 6 Banking firms in Canada.
Small businesses, personnel, and commercials access the banking products as provided by the Bank. The estimation for the future is that the Bank will considerably be intact with the increase in the overall revenue. $ 78.07 per share is the stock price that is ongoing for BMO. The rise in the share as well as in the stock price will be observed in the near future.
