Guaranteed Investment Certificates (GICs): Who Qualifies and What You Get
Learn how GICs provide guaranteed returns on your money and what you need to know about locking your funds away.
A Guaranteed Investment Certificate (GIC) is a way to invest your money where you are promised both your original deposit back and a set amount of interest.
Who it's for
This is available to any resident of Canada.
What you get
When you invest through this method, your principal amount—the initial money you put in—is protected. You are also guaranteed to earn a specific rate of interest on that money over a set period.
What it costs you
While there is no direct fee to join, your money is typically locked away for a specific term. This means you may not be able to access your funds until the investment period ends without facing penalties.
The catch to know
Even though your money grows, inflation can erode the real value of your returns. This happens if the rising cost of living grows faster than the interest you earn on your investment.
How to apply
- Check with your financial institution to see their current rates.
- Decide on a term length that fits your financial needs.
- Open an account or use your existing banking tools to purchase the certificate.