Guaranteed Investment Certificate
A guaranteed investment certificate is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks.
Due to its low risk profile, the return is generally less than other investments such as stocks, bonds, or mutual funds.
It is similar to a time or term deposit as known in other countries.
Offers a range of GIA options with the following features and benefits:
- Guaranteed rates of return
- Estate planningSecurity of
- principalRedeemable/non redeemable option
- A wide choice of terms and investment options
- Potential creditor protection
- Protected by Assuris, up to limits set by Assuris. More information on the coverage can be found at
Advantages & Characteristics
GIC accounts are simple investments that can bring an important element of securityto a financial plan because there’s no exposure to the market. The basic GIC account offers two investment options: cashable, which provides the flexibility to cash in if the need arises, and noncashable, which offers a high rate as compared with the standard term in the cashable account.
- Offer an advantageous interest rate that is guaranteed for the duration of the term
- Investment terms ranging from one to five years
- Choice of interest payment frequency: annual or at maturity
- Type of accounts available: Non-registered, RRSP, RRIF and TFSA
- Deposit guaranteed by the Canada Deposit Insurance Corporation
- Are not repayable prior to maturity, except in case of death