Looking for a secure, guaranteed way to grow your money?
Guaranteed Investment Certificates (GICs) offer both peace of mind and steady growth
GICs are a safe and reliable way to grow your wealth over time. They’re ideal if you’re saving for a long-term goal that’s a year or more away, whether it’s retirement, a dream vacation, or a special milestone in the future. Your money stays secure, earns guaranteed interest, and grows steadily toward your goals.
How GICs work at SCU
With a minimum $500 deposit, you can choose a term that ranges from one to five years. All deposit interest is accrued annually, so after the first year you’ll begin to reap the rewards that come with compounding interest (you’ll earn interest on the interest accrued in previous years).
Did you know?
GICs aren’t just safe—they’re also flexible You can hold them in a variety of registered accounts like TFSA or RRSP for tax advantages, or in non-registered accounts for easier access. This means you can tailor your investment to fit your financial goals and tax strategy. Talk to SCU about diversifying your portfolio.
Additional features of GICs at SCU:
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As an SCU member, you’ll enjoy some of the best rates in the Manitoba market. View our rates.
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We offer tiered rates starting at $100,000, so you’ll earn even more interest the more you save.
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All savings in a GIC are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.
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You can choose to have your interest compound within the term, or receive an annual interest payout to your account, as long as you choose a like-to-like transfer. For instance, each year you could have your TFSA GIC interest paid to your TFSA variable savings account.
Maximize returns in your GIC
The longer the better: Consider the longest term that fits your savings goal. Longer terms typically earn higher rates. Keep some cash in a High Interest Savings Account for unexpected expenses.
Consider laddering: Deposit laddering is an investment strategy that helps you maximize returns while offering the liquidity to tap into your GIC funds on an annual basis. The concept is simple: divide your investment into multiple GICs with different terms. For example, invest $25,000 by placing $5,000 in each term from 1 to 5 years. Each year, one GIC matures, giving you flexibility to reinvest or access funds.
Explore options at maturity: When your GIC is about to mature, we’ll send you a reminder and can help can review your options.
- You can choose to roll the funds into a new term (interest and all).
- Transfer funds to another savings option and enjoy a 14-day rate guarantee on renewals.
Smart saving strategies
- Combine GICs with other products: Pair GICs with a High Interest Savings Account for emergency funds. This gives you security and liquidity.
- Consider tax efficiency: If you're in a higher tax bracket, holidng GICs in registered accounts like TFSA or RRSP can help reduce taxes on interest.
- Plan for a rate change: Interest rates can fluctuate. Laddering helps you take advantage of future rate increases while keeping some funds accessible.
- Review your goals regularly: Life changes, so should your savings strategy. Revisit your GIC terms at maturity to ensure they still align with your plans.
Ready to start?
