Are GICs a good investment right now?


You can start investing in GICs with as little as $500. In this GIC guide for Canadians, we’ll show you how these versatile investments can help you preserve your purchasing power in the face of high inflation, without risk to your savings.

How do GICs work?

A GIC is a type of investment asset. Buying a GIC is like making a loan to a bank (or another financial institution) for a set amount of time—from as little as 30 days to as long as 10 years—at an agreed-upon interest rate.

  • How GIC interest rates work: Canada’s rising interest rates have one major upside: higher returns on GICs. Find out what affects their rates and how to buy a GIC.

The length of time is called the “term,” and the interest is paid to you annually, semi-annually or at the end of the term, depending on the GIC you buy. The last day of the term is the GIC’s “maturity date.” At that point, you’ll get your principal back, along with any remaining interest. Most GICs are “non-redeemable,” meaning you can’t cash them in early.

When 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-free, depending on the type of account.

Buying GICs can be convenient—Canada’s banks and other financial institutions all offer them. If you don’t have an investment account yet, you may need to open one to get started.

  • How to buy Scotiabank GICs: Scotiabank has a wide range of GICs to fit investors’ financial goals, including short- and long-term GICs, cashable GICs, personal redeemable GICs and market-linked GICs. Read more about Scotiabank GICs.

Investing in GICs

GICs can play a role in your investment portfolio no matter what life stage you’re in. Below, we’ve rounded up a dozen articles packed with investment ideas.

Read more about GICs:




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