Guaranteed Investment Certificates: Who Qualifies and What You Get
Learn how these investment products protect your principal while offering fixed interest rates for investors in Canada.
Guaranteed Investment Certificates (GICs) are financial products that offer a way to grow your money with a guarantee that your initial investment will be protected.
Who it's for
This is available to any investor looking for a low-risk way to hold their money.
What you get
You receive protection for your principal amount, meaning you are unlikely to lose the initial money you put in. In exchange for this security, you are paid a fixed interest rate over a set period.
What it costs you
Your money is often locked into specific terms for a set amount of time. If you need to access your funds before the term ends, you will likely face early withdrawal penalties.
The catch to know
If you choose a non-redeemable GIC, your money is completely inaccessible until the maturity date arrives. You must be certain you will not need that cash for the duration of the term.
How to apply
- Research different interest rates offered by various financial institutions.
- Choose a term length that fits your financial timeline.
- Open an account with a bank or trust company.
- Select your certificate type and fund the investment.