What is a GIC?

A Guaranteed Investment Certificate (GIC) is a deposit investment which is issued for a fixed term and rate.  The principal and Interest are guaranteed up to $100,000.00 by Canadian Deposit Insurance Corporation (CDIC) or Deposit Insurance Corporation of Ontario (DICO).  GIC’s are an extremely safe method of investing for the conservative investor.  

With GIC’s you have several choices as follows:

Long-Term GIC – can be purchased from 1 up to 5 years and cannot be redeemed until maturity.  You can receive annual, semi-annual, monthly or annual compound interest payments.

Short-Term GIC – cannot be redeemed prior to maturity and the investment period ranges from 40 to 364 days.

Cashable GIC – can be redeemed after a specified period of time prior to maturity without penalty.  The investment will run until the maturity date which is normally a 1 year duration.