As the name implies, a Guaranteed Investment Certificate (GIC) is exactly that, an agreement between you and a financial institution to lend that institution, some of your money. In exchange, you receive a certificate (an IOU) that states the rate of interest you will receive, how often you will receive this interest payment and for a set period of time, up to 5 Years. At the end of the term, you will receive your principal back from the institution plus the credited interest. GIC’s, available in small denominations of sometimes hundreds of dollars, these IOU’s form the cornerstone of many individual portfolios.  

What is compelling for many GIC investors is the backing of the Government of Canada, ensuring that if the Financial Institution cannot pay the principal back, the Government of Canada will return to you the principal deposited, up to $100,000. Because of these guarantees, the interest paid on a GIC is typically quite modest.

NOTE: We have structured our GIC offering in such a way that we can offer government backed insured deposits up to $2,400,000 per person. Ask us how.