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Search for an ETF or holding
Updated 2mo ago.
Updated 2mo ago.
A GIC is a fixed-income investment offered by Canadian banks and credit unions that guarantees the invested principal and a fixed or variable interest rate for a set term (typically 30 days to 5 years). GICs are protected by CDIC (Canada Deposit Insurance Corporation) up to $100,000 per member institution. It is one of the safest investments in Canada.
EQ Bank offers a 1-year GIC at 4.25% and Oaken Financial at 4.30%. If you invest $10,000 in a 1-year GIC at 4.25%, you will receive exactly $10,425 at maturity — guaranteed. You can hold GICs inside a TFSA, RRSP, or non-registered account. The ETF alternative would be a money market fund like CASH.TO or CSAV.TO, which offer daily liquidity but no capital guarantee.
GICs are ideal for short-term savings (emergency fund, home down payment) where capital preservation is the priority. In a high-rate environment, they offer competitive returns with zero risk of loss. The downside: your money is typically locked in until maturity (except cashable GICs, which offer lower rates). Always compare rates across institutions — online banks often offer 1 to 2% more than the big banks.