What “guaranteed” means
The guarantee applies to the principal and, in a fixed-rate GIC, to the return announced at maturity. It does not apply to purchasing power: a return below inflation preserves nominal capital and erodes its real value.
The non-redeemable GIC
Your money is locked in until maturity. In exchange, the rate is generally higher than on a redeemable product. It is the right choice only if you are certain you will not need the funds.
The redeemable GIC
It allows a withdrawal before maturity, sometimes after an initial period, often at the cost of a reduced rate or an interest penalty. Liquidity has a price, here as everywhere.
The market-linked GIC
Principal is guaranteed, but the return depends on the performance of an index or a basket, under a contractual formula that usually includes a cap, a participation rate, and averaging provisions. A rising market does not necessarily translate into an equivalent return.
Laddering maturities
Spreading an amount across successive maturities keeps periodic access to funds and reinvests gradually, without having to predict rates. It is a method, not a forecast.
The questions to ask
Is the money accessible before maturity, and on what terms? Is the return guaranteed or conditional? How is the interest taxed given the account used? And is the product covered by a deposit insurance regime?
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.