Guaranteed investment certificates
A Guaranteed Investment Certificate (GIC) is a secure investment that allows you to earn interest over a period ranging from 30 days to 10 years.
Investment
Our GIC investment services
When you buy a GIC from Assurancia, you agree to lend your money to a financial institution for a set number of months or years (the term).
A Guaranteed Investment Certificate (GIC) is an investment that functions much like a special deposit. When you buy a GIC from Assurancia, you agree to lend your money to a financial institution for a set number of months or years (the maturity date). At maturity, you’re guaranteed to get back the amount you’ve invested. That’s why GICs are one of the safest ways to invest money.
Nine things you need to know about guaranteed investment certificates
- The minimum amount you can invest is usually $500.
- You pay no fees when you buy a GIC.
- The interest rate on most GICs is fixed for a specified period (for example, 6 months, 1 year, 2 years or up to 10 years). The end of the period is called the maturity date.
- Some GICs offer variable interest rates, based on the performance of a benchmark index such as a stock market index.
- In general, the longer the term of the investment, the higher the interest rate.
- Interest on your GIC can be paid monthly, quarterly, semi-annually, annually or only at maturity.
- For some GICs, you’ll have to pay a penalty in order to withdraw your money before the maturity date. Other GICs, those that are redeemable or cashable, allow you to get your money back at any time, without penalty.
- Your money is protected, subject to certain limits, by the Canada Deposit Insurance Corporation. This protection does not apply to U.S. dollar GICs or GICs over five years old.
- You can hold GICs in registered investment accounts, such as Registered Retirement Savings Plans, Registered Retirement Income Funds and Tax-Free Savings Accounts.