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Guaranteed Investment Certificates (GICs)
Guaranteed Investment Certificates (GICs) are a trusted way to grow your savings with confidence. Offering security, flexible terms, and predictable returns on fixed rate GICs, they are ideal for Canadians seeking stability in their financial plans. Whether you're saving for short-term financial goals or building long-term wealth, GICs can help you work toward achieving your financial goals.
What is a GIC?
A GIC is a secure way to grow your money since it offers 100% principal protection with the potential for a return on your GIC investment. You can choose how long you want to invest your money and at the end of the term, you get your principal GIC investment back plus any potential interest earned.
Benefits of GIC
TD's Featured GIC Rates in Canada
|
GIC |
Term |
Rate |
|
|---|---|---|---|
|
100 days |
Earn up to % per annum |
||
|
14-month |
Earn up to % per annum |
||
|
5 years |
Earn up to 55%* over the entire term of the GIC |
||
|
1 year |
Earn up to % per annum |
How do GICs work in Canada?
- Choose your plan and term: Grow your money tax-deferred or tax-free when you invest in a registered plan like an RRSP1 or TFSA2. Then choose how long you want to invest your money depending on your investment goals.
- Select a GIC: Fixed-rate GICs offer guaranteed returns, equity-linked GICs provide growth potential, and foreign currency GICs diversify investments in foreign currency.
- Cashability: You can choose a cashable or redeemable GIC, if you want the flexibility of cashing out early before the end of the term.
Types of GICs
Whether you're saving for a down payment, a major purchase, wedding costs, or a major reno, TD offers 5 kinds of GICs designed to help you achieve your unique investment goals in a stress-free way. Discover which TD GIC is right for you.
Capitalize on the growth potential of stock markets without risking your principal investment while receiving a guaranteed minimum interest return.
Take advantage of these TD GICs which feature competitive interest rates and convenient automatic renewals.
- Rate: Up to % per annum on a 14 month term
- Terms: 100 days, 14 months and 18 months
- Minimum investment: $5003
- Cashability: Cashable or Non-cashable
- Type: Fixed-rate
- Plan: Registered or non-registered
Great for: Investors looking for convenience and competitive fixed-rates with short to medium term goals.
Get flexible access to your money when you need it, while earning a guaranteed return.
- Rate: % per annum on a 1 year term
- Terms: 100 days, 1 year and 3 years
- Minimum investment: $5003
- Cashability: Cashable at prescribed early cashing rates
- Type: Fixed-rate
- Plan: Registered or non-registered
Great for: Investors looking for the flexibility of cashing out early or a place to park your money and earn interest, while you explore other investment options.
Enjoy a guaranteed rate of interest return that is generally higher than a cashable GIC, by locking in your money for a set period of time.
- Rate: % per annum on a 1 year term
- Terms: 30 days to 5 years
- Minimum investment: $5003
- Cashability: Non-redeemable
- Type: Fixed-rate
- Plan: Registered or non-registered
Great for: Investors looking for a higher guaranteed interest rate and want to invest until maturity.
Earn interest on your U.S. Dollar funds at a guaranteed rate.
- Rate: % per annum on a 5 year term
- Terms: 1 day to 5 years
- Minimum investment: $1,000 USD4
- Cashability: Cashable or Non-cashable
- Type: Fixed-rate
- Plan: Non-registered only
Great for: Investors looking to earn interest on U.S. currency until it's ready to be converted.
Tools and Calculators
Frequently Asked Questions
If you hold your GICs in a registered account such as a TFSA or RRSP you could grow your money tax-free or tax-deferred, respectively. However, if you hold your GIC in a non-registered account, the interest that you earn each year will be taxed.
Cashable GICs give you the flexibility to access your money at pre-encashment rates. However, non-cashable GICs can’t be cashed in early and generally offer you a higher return than cashable GICs for your commitment to keep the investment for the entirety of the term.
Investing in a GIC ensures your principal is secure with the potential to earn interest, making it a low-risk option for conservative investors. Unlike stocks or ETFs, GICs protect your money from market volatility, offering stable returns regardless of fluctuations. GICs are ideal for those prioritizing financial security and predictable outcomes over higher risk, higher reward strategies.
GICs are considered safe investments in Canada as they provide full principal protection with interest potential. They are insured by the Canada Deposit Insurance Corporation (CDIC) up to specific limits, ensuring your funds are protected.
Yes, you can hold a GIC in a TFSA (Tax-Free Savings Account) or RRSP (Registered Retirement Savings Plan). In a TFSA, the interest earned grows tax-free, with tax-free withdrawals. In an RRSP, the interest grows tax-deferred and is taxed upon withdrawal. GICs are a secure investment that have the potential to earn investment returns, and holding them in registered accounts adds tax benefits, making them a suitable choice for long-term financial planning.