May 19, 2024

The Queens County Citizen

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How to make your $100 or more grow?

How to make your $100 or more grow?

If you have savings in your bank accounts or at checkout, here's a current solution to help your nest egg grow risk-free.

This involves transferring your savings to the purchase of new savings bonds offered by Épargne Placement Quebec, the financial arm of Eric Girard's finance ministry.

Up to 1 inclusive saleer Next June, a new vintage of savings bonds will earn you 4.75% in the first year.

Subsequently, as with all issues of savings bonds in circulation, the annual yield is adjusted to match the yield offered on the next year's new issue. Each new issue has a duration of 10 years.

  • Listen to the Finance segment with Michel Girard QUB :

Why is this 4.75% yield interesting? Because in the category of safe and cashable investments at any time, it simply does not exist anywhere else as Épargne Placement Quebec offers its holders a high return of 4.75%.

People tell me: “Yes, but I can get a little more return in 1 year.” I have no doubt about that… But it is not cashable before maturity, in case of GIC (Guaranteed Investment Certificate) with fixed tenure of one year.

Major banking institutions currently offer a yield of 4.95% on their one-year GICs. Smaller financial institutions also offer a little more than Laurentian Bank (5.08%), B2B Bank (5.08%), CDN Bank (5.09%), ICICI Bank (5.08%), 13%), Vancity Credit Union (5.15%). .

But I repeat, these are one year investments, cannot be cashed out early.

When we talk about savings bonds, we are talking about an investment that can be redeemed at any time before maturity.

  • Listen to the Finance segment with Michel Girard QUB :
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Moreover, Épargne Placement Québec (ÉPQ) is very generous with its new vintage savings bonds, exceeding the yield offered on its rate bonds (4.75% over 1 year). In the first year of these two categories of bonds, ÉPQ yields 4.60% or 15/100e A percentage point lower.

You're going to say that there isn't much of a gap. But ok. But the Quebec government “really” wants to offer its perpetual savings bonds to Quebecers, and it shows with modest yield increases.

I remind you that every year, ÉPQ organizes two new issues of savings bonds each year, namely 1er June and 1er November.

Important parentheses: previous transmission of 1er November 2023 will continue to offer its 5% yield till 31 October, while other savings bonds in circulation will undergo a yield adjustment to 4.75% from 1 Octoberer Next is June.

The minimum investment required to purchase savings bonds is $100.

Maximum amount? Notice to Quebec billionaires: No ceiling!

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