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Re: Annual vs montly payout for GIC

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I want to buy a GIC, and I noticed (on TD Direct) that there is the option of monthly/6 months/annual payout.
While I think it simply means when you get your interests paid, I wanted to confirm if there is any disadvantage to it.
Because I can see that I can get exactly the same interest (around 5%) on all the 3 options.. so I wonder who would take something different from monthly (so that you start to get interests from the earned interests).
I suppose, if there is a choice, there is a reason.. but I do not see it.
The monthly interest payout is the annual interest divided by 12. I get the monthly interest then sweep it into TD8150 each month to earn additional interest on interest. It starts to add up.... pennies to dollars.

I suppose the annual interest payout is for those who want rollover the annual GIC with interest.

Statistics: Posted by b33zlebub — Feb 5th, 2024 11:27 am



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