This type of investment guarantees you a set return on your money over a fixed period of time, which can be very beneficial when saving for a specific date in the future. There are short and long term deposits. Short term deposits usually require a higher investment than long term deposits, and often have a slightly lower rate of return. Term deposits pay out interest monthly on any term longer than 90 days.
This type of investment is a bit more complicated than a term deposit. The potential exists to make more money; however, a return is never guaranteed. Even with a mutual fund that invests in guaranteed government bonds there is an element of risk. There are usually fees involved in purchasing or selling funds, and there are often management fees involved. The important thing is to investigate before you invest.
Contact Credential Asset Management Inc. at Summerland Financial Services Ltd. and let them help you create a mutual fund portfolio that matches your future investment goals. Remember that the key to investing towards a post-secondary education is to start as early as possible and make sure that your investment will help you achieve your specific final objective.
*Mutual funds are offered through Credential Asset Management Inc. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.