Guaranteed Investment Certificate (GIC)

A guaranteed investment contract (GIC) is an investment product that offers a guaranteed rate of return on cash deposits held over a fixed period of time. By depositing cash in a GIC, you are lending banks, insurance or trust companies, your money for a pre-determined number of months or years. In return, you’re guaranteed to receive a prescribed rate of return on the money deposited. Generally, the longer the term, the higher the interest rate you will be paid by the issuer of the GIC.

There are two types of traditional GICs:

  1. Cashable GICs: allows early withdrawal of funds, before the maturity date, without paying a penalty
  2. Non-cashable GICs: Funds are locked in for the entire term and the issuer does not allow for withdraws being made prior to the maturity date. Generally, these type of GICs pay higher rates in comparison to cashable GICs

Buying and selling GICs:

To buy or sell GICs, please check out our GIC bulletin and reach out to us at 1.866.980.9590 when you're ready to place a trade. We're available Monday to Friday, 8:00 a.m. to 4:30 p.m. ET. Trading GICs at Questrade is commission free. Minimum order is $5,000 (some GICs may have higher minimums). For products we currently offer, please click here.

Important to know:

  • Depending on the GIC, interest payment may be paid to investor’s monthly, quarterly, semi-annual, annually, or only upon maturity
  • Generally, GICs are RSP eligible

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