GIC (Guaranteed Investment Certificate)
Quick Definition
A deposit that pays a fixed or set return over a fixed term.
Full Explanation
A Guaranteed Investment Certificate is a deposit product offered by Canadian banks and credit unions that guarantees your principal and pays interest over a set term, typically 30 days to 5 years. Non-redeemable GICs lock your money until maturity in exchange for a higher rate; cashable GICs allow early withdrawal at a lower rate. Eligible GICs at member institutions are covered by CDIC up to $100,000 per category.
Related Terms
CDIC (Canada Deposit Insurance Corporation)
Federal insurance protecting bank deposits up to $100,000 per depositor category.
High-Interest Savings Account (HISA)
A savings account offering above-average interest rates, often at online banks.
Compound Interest
Interest calculated on both the principal and previously earned interest, accelerating growth.
Ready to put this knowledge to use?
Use our free calculators to model your situation based on what you've just learned.