Share your savings horizon and objective to prepare a discussion about options available at the time of the conversation. No rate is shown or guaranteed on this site.
What a GIC guarantees, and what it does not
It guarantees the principal at maturity and, in a fixed-rate GIC, the return agreed at the outset. It does not guarantee that the return will outpace inflation, nor that you can get the money back before maturity.
Liquidity is the real constraint
A non-redeemable GIC locks the amount until maturity. A redeemable one allows early withdrawal, generally at a lower return and sometimes after an initial period. That is the first question to settle, before the term.
Choosing the term
A long term suits you only if you are certain you will not need the funds. Staggering several maturities is a common way to keep flexibility without giving up longer terms entirely.
Fixed-rate and market-linked GICs
The second protects principal but ties the return to an index, with ceilings and a calculation formula specific to the contract. It is not a risk-free product; it is a product with no risk to principal: the return itself can be zero.
Deposit protection
Deposits are protected by a deposit insurance regime, up to ceilings and under conditions that vary notably with the term and the institution. A representative tells you what applies in your case.
Tax treatment depends on the account
In a non-registered account, interest is taxable each year, even if paid only at maturity. In an RRSP or TFSA, treatment differs. The net return therefore depends as much on the account as on the rate.
A maturity approaching
At maturity, many institutions renew automatically if you say nothing. That is rarely the best option. The period around maturity is when comparing costs least.
A GIC within a portfolio
A GIC fills a specific role: securing an amount whose date of use you know. It compares poorly with a fund, which answers a different need. The choice is made against the objective, not the posted return.
Why no rate is shown here
Rates vary by institution, term, and amount, and change constantly. A figure shown here would be stale and misleading. The representative presents the real options at the time of the conversation.
What happens after you submit
An authorized representative calls you back with the terms and conditions actually available at the time of the conversation, since they change constantly. Enter no account detail or precise amount here.
Frequently asked questions
Are rates advertised elsewhere guaranteed here?
No. No rate is displayed or guaranteed on this site. Real conditions are presented by the authorized person at the time of the conversation, based on the amount and the term.
Is my principal really guaranteed?
Principal is guaranteed at maturity, and so is the return in a fixed-rate GIC. What is not guaranteed is that the return will outpace inflation, nor that you can withdraw before maturity.
Can I withdraw before maturity?
Only if the GIC is redeemable, generally at a lower return and sometimes after an initial period. A non-redeemable GIC locks the amount until maturity.
What term should I choose?
A long term suits you only if you are certain you will not need the funds. Staggering several maturities keeps flexibility without giving up longer terms.
What is a market-linked GIC?
It protects principal but ties the return to an index, with ceilings and a formula specific to the contract. Principal is not at risk; the return itself can be zero.
Are my deposits protected?
They are, by a deposit insurance regime, up to ceilings and under conditions that vary notably with the term and the institution. The representative tells you what applies.
How is the interest taxed?
In a non-registered account, interest is taxable each year, even if paid only at maturity. In an RRSP or TFSA, treatment differs.
My GIC is maturing. What happens?
Many institutions renew automatically if you say nothing, which is rarely the best option. Note the date and leave yourself a few weeks: it is the only way to decide rather than default.