GIA (GIC)
GIC, or Guaranteed Investment Certificate, is a secure investment, which has a guarantee to preserve your money.
You will earn interest at a set rate or a variable rate.
Because GIC's are a 'safe' investment, the interest rates tend to be fairly low if compared to a more aggressive investment.
There are benefits of having your investment in a GIC:
- They are safe, you will not loose money as both your invested dollars and your interest to be paid are guaranteed.
- The interest rates are competitive and are guaranteed for the entire term of your investment.
- You have options of what type of term to invest in. That can be a Flexible investment term which can range anywhere from one day to five years, seven years and ten years.
- You can choose the frequencies of your interest payments.
- GIC's are eligible for registered investment plans.
Redeemable
Redeemable GICs or term deposits, can be redeemed prior to the maturity date. However, a lower interest rate applies to early redemptions.
Non-Redeemable
Non-redeemable GICs are not redeemable prior to maturity except in exceptional circumstances.