Guaranteed investments like Guaranteed Investments Certificates (GICs) are one of the safest ways to invest as your original investment and interest payments are guaranteed at the end of the term. When you buy a GIC, you are agreeing to lend the bank or financial institution your money for a set number of months or years, and they will guarantee you a return of the principal (the initial amount you invested) and interest at a rate specified in your contract. GICs are offered in two variations—redeemable (or “cashable”), which allow you to get your money back at any time with no penalty for early redemption, or non-redeemable, where you will have to pay a penalty if you need to get your money back before reaching the date of maturity. If they are non-redeemable, your financial institution may not allow you to cash them in early, and if they do, you may have to pay a penalty and/or lose interest on your investment. Learn more about GICs.
Speak with your financial institution or a registered representative to determine your options. Visit GetSmarterAboutMoney.ca to learn more about investing and various investment products.