A guaranteed investment certificate, or GIC, is a deposit you leave with a financial institution for a set term at a stated rate. It is a low-risk way to save for a goal with a known date, such as a down payment in a few years.
How the term and rate work
You choose a term, and the rate applies for that term. Money in a GIC is usually locked in until the term ends, so check the early withdrawal terms before you buy. Compare the rate for each term you are considering, not only the shortest one.
What CDIC covers
The Canada Deposit Insurance Corporation (CDIC) insures a GIC when two things are true: it is issued by a CDIC member institution, and it is held in a CDIC deposit insurance category. The limit is up to $100,000 per eligible category, per member institution.
Check the issuer before you buy
Not every place that sells GICs is a CDIC member, so confirm the institution is a member before you invest. A GIC from a non-member may not have CDIC protection. Spreading savings across member institutions and categories can raise the amount that is covered.
Compare the whole offer
Look at the rate, the term, the early withdrawal rules, whether the GIC renews automatically, and who issues it. Use the savings and GIC growth calculator to see what the interest could add up to over the term.
Try the savings and gic growth calculator →
Official source
CDIC · Guaranteed investment certificates (GICs)
This guide explains general rules. Confirm your figures with your lender, lawyer, or the official source before you act.