News Releases

TORONTO, ONTARIO--(Marketwire - Feb. 2, 2012) - With less than a month left for Canadians to make 2011 contributions to Registered Retirement Savings Plans (RRSP), BMO Bank of Montreal today announced it is offering a market-leading special rate of 2 per cent on its one-year Guaranteed Investment Certificate (GIC).

"We want to encourage Canadians to get their RRSP contributions completed as early as possible, and this market-leading special rate is a good incentive for investors to do so," said Domenic Gallippi, Head of Term Investment Products, BMO Bank of Montreal.

Mr. Gallippi added that for many Canadians, it can be difficult to make sense of their investments amid uncertain market conditions. According to a BMO survey, continued global market volatility is causing Canadians to consider safer investment options more so now than during the market downturn of 2008, with three quarters (72 per cent) of Canadian investors willing to sacrifice potential gains for stability and security. One-in-three investors (36 per cent) are more open to including guaranteed investments - such as GICs or bonds - than in 2008.

"Recent volatility may have Canadians looking for ways to insulate their investments from the ups and downs of the markets," said Mr. Gallippi. "And for many, it's important that they can balance risk versus reward within their investment mix. Products such as GICs are designed to do just that."

"Making regular contributions to an RRSP remains the most effective way for Canadians to set themselves up for retirement success," said Tina Di Vito, Head of the BMO Retirement Institute and author of 52 Ways to Wreck Your Retirement… and How to Rescue It. "For those who are concerned or uncertain about how to invest when the markets are so volatile, a GIC may be a good choice for them as it allows them to build up their retirement savings while minimizing risk."

Ms. Di Vito added that the money you invest within an RRSP grows tax free. Since you pay no tax on investment growth while your money remains invested in an RRSP, your investments compound far more quickly than they would have if invested outside of one.

BMO will be offering the special rate of 2 per cent on one year GICs for new contributions made to a RRSP between Feb 2^nd and 13^th.

For more tips and advice on investing, please visit www.bmo.com/smartinvesting.