You can start investing in GIC with as little as $500. In this GIC guide for Canadians, we’ll show you how these versatile investments can help you maintain your purchasing power in the face of high inflation, without putting your savings at risk.
How do GICs work?
GIC is a type of investment property. Buying a GIC is like making a loan to a bank (or any other financial institution) at an agreed-upon interest rate for a set amount of time—as little as 30 days to as long as 10 years.
How GIC Interest Rates Work: Canada’s rising interest rates have one major advantage: higher returns on GICs. Learn what affects their rates and how to buy a GIC.
The period of time is called the “tenure,” and interest is paid to you annually, semi-annually, or at the end of the term, depending on the GIC you purchased. The last day of the tenure is the “maturity date” of the GIC. At that point, you’ll get your principal back, along with the remaining interest. Most GICs are “non-callable,” meaning you can’t cash them out early.
While buying a GIC, you can choose whether to hold it in a registered or non-registered account. In a registered account, your earnings will be tax-sheltered or tax-exempt depending on the type of account.
Buying a GIC can be convenient—Canadian banks and other financial institutions all offer them. If you don’t yet have an investment account, you may need to open one to get started.
How to Buy Scotiabank GICs: Scotiabank has a wide range of GICs to meet investors’ financial goals, including short and long-term GICs, cashable GICs, individual redeemable GICs and market-linked GICs. Read more about the Scotiabank GIC. Invest in GIC
GICs can play a role in your investment portfolio no matter what stage of life you are in. Below, we’ve rounded up a dozen articles full of investment ideas.
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