GICs (via Banks): Who Qualifies and What You Get
Learn how Guaranteed Investment Certificates work, how to protect your savings, and the trade-offs of locking your money away for interest.
Guaranteed Investment Certificates (GICs) are a way to save your money in a bank while earning a set amount of interest over a specific period.
Who it's for
This is available to anyone who has savings they wish to invest.
What you get
You receive a guaranteed interest rate on the money you deposit. This means you know exactly how much your investment will grow by the time the term ends.
What it costs you
The main cost is your liquidity, or how easily you can access your cash. When you invest in a GIC, your funds are locked away for a specific term, meaning you may not be able to withdraw them until that time has passed.
The catch to know
There is a risk that inflation—the rising cost of goods and services—could rise faster than your interest rate. If this happens, your money might lose purchasing power even though the numerical balance is increasing.
How to apply
- Compare different interest rates offered by various banks.
- Choose a term length that fits your savings goals.
- Open a savings account or visit your bank to deposit your funds.
- Confirm that your investment is covered by deposit insurance.