A Guaranteed Investment Certificate (GIC) is a low-risk investment that typically provides a guaranteed rate of return over a fixed period. GICs are a safe and reliable way to grow your wealth over time, and are a perfect choice if you’re saving for a specific goal that’s a year away or more.
Features to consider when choosing a GIC
- Minimum investment: Many GICs have specific minimum balance requirements.
- Payment periods: Interest on your GIC may be paid monthly, once a year, or on the maturity date.
- Redeemability: Some GICs are cashable, while others are non-redeemable for the full term length.
- Deposit protection: Some financial institutions offer full or partial deposit guarantees, which protect you from financial loss in the unlikely event that your financial institution fails.
GICs are ideal for: