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Your guide to GICs

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 as they guarantee your initial investment, and are a perfect choice if you’re saving for a specific goal that’s a year away or more. Here’s how they work at SCU

Features to consider when choosing a GIC

Minimum investments
At SCU, our GICs require a minimum balance of $500 and are non-redeemable.

Payment periods
Interest on your GIC may be paid annually, or on the maturity date (depending on the GIC type).

Deposit protection
At SCU, all deposits are 100% guaranteed by the Deposit Guarantee Corporation of Manitoba.*

A few GIC types available to you at SCU

  • Standard GICs: Choose from 1-to 5-year terms and earn a guaranteed rate of return. In addition, we offer tiered pricing, starting at $100,000.

  • U.S. Dollar GICs: Rather than leaving funds in a low-interest U.S. chequing account, a U.S. Dollar GIC can help you earn a few extra dollars for your next getaway.

  • Index-Linked GICs: Index-linked GICs allow you to participate in the stock market while protecting your principal investment. Our Index-linked GICs offer unlimited earning potential, with no caps or limits on returns.

How to maximize returns in your GIC

Save in a longer term
Typically with a GIC, the longer the term, the higher the interest rate. Consider the longest term possible given
the timing of your savings goal. Because funds are not available until your GIC matures, it’s also wise to keep
some cash savings readily available (within a variable savings account, for example) to help you manage the

Look for tax efficiency
There are tax advantages that come with putting your GIC in a Tax-Free Savings Account (TFSA) or in a Registered Retirement Savings Plan (RRSP). With a TFSA, all investment growth within a TFSA is tax-free, regardless of when or how much you withdraw. Alternatively, RRSPs are tax deferred, meaning you don’t pay taxes until you withdraw from your RRSP, which may reduce the taxable income you owe.

Consider deposit laddering
Deposit laddering is an investment strategy that will help you maximize your returns while offering the liquidity to
tap into those funds on an annual basis. The concept is simple — divide your total investment dollars by five
and deposit these smaller amounts into one- to five-year GICs. As each term matures, lock in for an additional
five years. This way, you’ll have a GIC that matures every year, giving you the option to access some of the money, reinvest what you have, or even add more funds to the maturing GIC.

Explore options at maturity
When your GIC is about to mature, you can choose to roll the funds into a new term (interest and all) or have the GIC funds set to be added to another savings vehicle of your choice.

Interested in opening a GIC at SCU?

Explore your term options


*Includes all savings and chequing accounts, RRSPs, RRIFs, TFSAs, and GICs.

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