Q&A: Wants to get GIC money
Question: I have GICs at a bank that have matured and the
money was reinvested. I am over 60 years old. I wish to remove some funds, how
do I go about it, and are there taxable penalties? – J.
Gordon Pape’s answer: There are no tax implications in early
GIC withdrawals, assuming the certificates are not held in a registered plan.
But there will almost certainly be a penalty imposed by the financial institution,
if indeed they allow you to take any money at all before the next maturity date.
That depends on the policy of the bank and you will have to discuss the matter
My advice is to never agree to an automatic rollover of GIC investments. Always
instruct a financial institution to deposit the proceeds to your account at
maturity. You can then decide if you want to reinvest in GICs, take some of
the cash for spending, or put the money to work elsewhere.