What is a GIC?

Guaranteed Investment Certificates (GICs) are investments offered by Canadian banks, credit unions and trust companies. GICs guarantee the return of principal invested plus a return, typically based on a fixed rate of interest.  GICs are issued for fixed terms (usually between 30 days and 5 years) and are covered by deposit insurance.

Why are GICs important?

GICs can act as a risk balancer to your portfolio because they guarantee repayment of your principal and interest, are backed by deposit insurance, and can be structured to deliver your returns when you need them.

Is my money safe?

Yes.  GIC issuers guarantee repayment of your principal and interest.  In the unlikely event that an issuer fails, Canadian dollar GICs are covered by deposit insurance. Canadian Deposit Insurance Corporation (CDIC) insures deposits up to $100,000 per covered financial institution (for GICs with terms up to 5 years). Deposit Insurance Corporation of Ontario (DICO) insures deposits up to $250,000 per covered financial institution (with unlimited coverage for registered accounts).  Talk to us about how to maximize your GIC insurance coverage.

GICPlus Rates

GICPlus is not affiliated with any financial institution.  We survey a competitive community of issuers to source great rates - typically higher than those of the big 5 banks. Click here for our current rates

GIC Advantages

  • Eliminate market volatility in a rising interest rate environment. While bond and bond fund prices typically fall as interest rates increase, GIC returns are guaranteed.
  • In the current environment, GICs typically provide higher yields than federal, provincial and investment grade corporate bonds having similar maturities.
  • GICs typically pay higher interest rates than both ordinary bank accounts and high interest savings accounts.
  • GIC investments can be "laddered" to:
    • optimize the balance between your future cash flow needs and your GIC investment returns.
    • allow you to benefit from future interest rate increases when laddered GICs mature. Click here to see the benefits of a laddered GIC portfolio.

Why work with a Deposit Broker?

GICPlus is a deposit broker and an affiliate member of the Registered Deposit Brokers Association.

As your deposit broker we:

  • Put your interests first – we’re not affiliated with any issuer
  • Offer superior rates from our community of issuers – typically much higher than those of the big 5 banks
  • Manage the paperwork at multiple financial institutions – providing you with one-stop GIC shopping
  • Simplify your ongoing money management and reinvestment objectives
  • Survey rates, terms and deposit insurance coverage at multiple issuers
  • Provide you with the means to to meet your objectives for liquidity, returns, security and efficiency

Click here to see the Broker Advantage Index

How does my GICPlus advisor build a GIC portfolio?

Each client has different needs.  To build a customized portfolio for you, we first meet to discuss your specific planning needs.
We access GIC rates from a wide selection of issuers to optimize your customized portfolio, taking into account your needs for:

  • Liquidity
  • Returns
  • Security and deposit insurance coverage

In some situations a laddered GIC portfolio may be suitable.  Click here to see the benefits of a laddered GIC portfolio.