GIC's with TD Bank
 

So I inherited money back in 2011 and I went to go put it in my account back then and the banker convinced me to invest it in GIC's, I asked them if I could just cash them out. They pretty much told me that I can't cash them out until 2016 over the phone. That's how long it's locked in for. Is there any way this locked money can be cashed out? close my account with the bank maybe?...

i'm pretty sure you can take it out anytime, but you will lose all the interest you've made on it.

Unless you are in desperate need of cash, I wouldn't suggest pulling them out. I think there is a penalty for pulling it out early, but I might be mixing up with another type of investment here.

Yes there's a penalty. My Aunt just had to go through this a few months ago.

Most ridiculous thing was her GIC's are locked in but yields even lower than the fund I'm holding which can be cashed within 3 business days. :joy:

Locked in GIC can only be cashed out with no penalty if its due to extreme financial hardship (ie. bankruptcy) as per TD policy.

All other reasons are subject to a penalty where your GIC gets sold on the open market. Since your GIC matures in 2016 it would definitely not be worth it for you to cash it in.

how much are we talking about $1000? $10,000? $50,000?

I'm cashing them out before bankruptcy happens. Does that count?
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$14,000 even, GIC plus?
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If you are cashing it in because of bankruptcy the bank will ask for proof that you have actually declared bankruptcy. Once you provide that then it's really branch discretion but more often than not, bankruptcy = no penalty.

Since you are in a market growth GIC (return % is not determined until 2016) you will get 0% return and a lower buy back price. I don't know how much but i would assume 85/100 to 95/100 as a guess.

Lol just tuck the money away like you never inherited it.

Helped some kid get a GIC and a week after its gone

get them to apply a secured line of credit with that investment secured. You'll have to pay interest but most likely you won't pay more than the penalty. Interest rate is P+1=4%
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agreed! good recommendation, but if you are close to bankrupcy and your credit has been heavily affected by missed payments, you still may not be able to get 100% liquid secured LOC. Also depends on your debt servicing abilities.