Guaranteed Investment Certificates (GICs) are one of the safest ways to invest. Money invested in GICs is protected against loss, up to a limit.
Where can I buy GICs?
- Banks or trust companies
- Credit unions and caisses populaires
- Brokerage firms
- Some financial planning firms.
Insurance companies sell a very similar investment, called a Guaranteed Interest Annuity (GIA).
Tip: In most cases, you need to invest at least $500 to buy a GIC. With many GICs, you agree to keep your money invested for a certain period of time. You may pay a penalty if you take it out early.
Remember: Your money is safe in a GIC.
But it may not be easy to get your money out early. If you are looking for an investment that you can buy in smaller amounts than a GIC, or that you may be able to cash more easily, look into Canada Savings Bonds (CSB).
Content in this section is provided in partnership with the Investor Education Fund, a non-profit organization promoting financial literacy to Canadians. To find out more go to GetSmarterAboutMoney.ca.