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What is a Guaranteed Investment Certificate (GIC)?

Written by Tom Anderson | September 18, 2024 6:20:49 Z PM

Do you know what a Guaranteed Investment Certificate (GIC) is? You may also have heard it referred to as a term deposit. It’s a type of investment where the principle you invest earns a predetermined interest rate over a set period of time (term).

The goal for the investment is the primary determinant for the term length you choose. For example, a short-term GIC might be good if you want to see returns in a shorter timeframe – maybe you just need some extra money for a down payment on a car or a bucket list vacation. You could earn higher interest than in your savings account for as little as 30 days! On the other hand, a longer-term GIC could be most appropriate for longer-term goals, as you are more likely to realize a greater return over the course of the term.

During whatever term you choose, your investment is generally non-redeemable, or in other words, locked in. You can’t withdraw it until the end of the term. However, there is very little risk involved, since it is a guaranteed investment. You get back your original investment plus interest.


At Kindred, we have several GIC options for you! Our standard GICs offer term lengths from 30 days up to 5 years. Did you know we also offer a 1-year cashable GIC that allows for cashing out the investment before the term is up and you will still earn some of the interest? And, ALL of our standard GICs are socially responsible! Also, make sure to ask us about our unique to Kindred - impact GICs such as the Community Inspiration GIC, and the Affordable Housing GIC.

Depending on your plans and goals, sitting down with a professional is the first step. Even if you’ve invested in GICs before, it’s always good to speak with a financial advisor to determine what is right for you, right now. Whether you are a seasoned investor or just getting started, we can help you add the right investment to your portfolio or start you on your investing journey.

Speak with a member of our Wealth and Investment team today! We’re here to help you Make Peace with Your Money®. You can ask us anything.