If you want your savings to earn interest without worrying about the stock market, a GIC (Guaranteed Investment Certificate) is one of the simplest options available in Canada.

With a GIC, you deposit money with a bank or financial institution for a set period — for example, one, two or five years. In return, the institution pays you a guaranteed rate of interest. You know the rate when you invest, so there are no surprises if markets go down.

What does “non-redeemable” mean?

A non-redeemable GIC generally means you agree to leave your money invested until the GIC matures. In exchange for giving up easy access to your money, these GICs will often offer better rates than cashable or redeemable alternatives.

For example, if you put $10,000 into a one-year GIC paying 3.5%, you would earn about $350 in interest over the year before tax, assuming simple annual interest.

The catch is simple: don’t put money into a non-redeemable GIC if you may need it before maturity.

Compare before you buy

GIC rates can vary quite a bit from one bank to another, even for the exact same term. A few minutes of comparison can make a meaningful difference, especially on larger deposits.

That’s why we built RateCompute.

Ready to see what’s available? → Compare today’s Canadian GIC rates