About GICs

Find out all the terms, benefits, and deposit insurance coverage for your area.

What is a Guaranteed Investment Certificate (GIC)?

A GIC is a low risk Canadian investment that guarantees 100% of your investment, while earning interest. Competitive rates are guaranteed for the full term of your investment.

Due to its low risk profile, the return is generally less than other investments such as stocks, bonds, or mutual funds. On the flip side, since your interest rate is guaranteed, you don’t have to worry about any fluctuations in the economy or global market.

Benefits of a GIC

Depending on the type of GIC you decide upon, the benefits to choosing a GIC in your portfolio include:

  • no fees when you buy a GIC
  • competitive interest rates, guaranteed for the full term of the investment
  • the option to hold GICs in registered investments like RRSPs, RRIFs and TFSAs; save yourself from paying taxes on interest earned
  • select terms that offer flexibility, cashable after 30, 60 or 90 days
  • a choice of interest payment frequencies
  • protection through the various deposit insurance of: CDIC, CUDIC, DFCM, and CUDGC.
  • when the term of a GIC comes to an end (maturity date), you receive the entire amount you invested, plus interest

Read more about GICs and the best questions to ask yourself before you purchase.

Deposit Insurance

Guaranteed Investment Certificates (GICs) are insured by Federal, Provincial or Corporate insurance coverage. Chartered Banks and Trust Companies are federally insured and Credit Unions are provincially or corporately insured. Deposit insurance is automatic and does not require special application regardless of where the depositor resides.

Federal Insurance Coverage is provided by the Canadian Deposit Insurance Corporation (CDIC)

The Credit Union Deposit Insurance Corporation (CUDIC), a statutory corporation, guarantees all deposits and non-equity shares of British Columbia credit unions as set out in the Financial Institutions Act.

CUDIC’s responsibility is to administer and operate a deposit insurance fund. The Financial Institutions Commission (FICOM), an agency of the Government of British Columbia, is responsible for administering CUDIC and for administering the regulation of financial institutions operating in the province. 

All money on deposit and money invested in non-equity shares with a BC credit union is 100% guaranteed, including foreign currencies and accrued interest, regardless of the length of the term to maturity.

The Credit Union Deposit Guarantee Corporation (CUDGC) provides risk-based regulatory oversight and a deposit guarantee to enable a safe and sound credit union system in Alberta.

CUDGC’s primary roles are to:

  • Provide a 100% guarantee of deposits held with Alberta credit unions
  • Regulate credit unions and enforce the Credit Union Act
  • Review, advise and direct credit unions on sound business practices
  • Monitor credit union performance and implement appropriate actions to improve performance and reduce risks
  • Establish individual credit union loan approval limits and provide an appropriate adjudication process for loans exceeding these limits

Credit Union Deposit Guarantee Corporation is the primary regulator for Saskatchewan credit unions and SaskCentral, as assigned under provincial legislation. The Corporation promotes responsible governance by credit unions and SaskCentral, and the strength and stability of the credit union system.

Deposits held in Saskatchewan credit unions are fully guaranteed. There is no limit to the size of deposit covered by the guarantee – whether $1 or $1,000,000 or more, all deposits are fully guaranteed.

The Corporation’s system of deposit protection, including preventive approaches, strong levels of credit union capital and a strong guarantee fund ensure even the largest deposits are fully guaranteed.

The Deposit Guarantee Corporation of Manitoba (DGCM) commenced operations in 1965 as the Credit Union Stabilization Fund guaranteeing deposits in credit unions and caisses populaires on a voluntary basis.

DGCM provides an unlimited guarantee of all deposits in a Manitoba credit union or caisse including accrued interest to date of payout.  This guarantee covers all deposits including chequing and savings accounts, term deposits (including those with terms exceeding five years), registered deposits, and foreign currency deposits. The guarantee is not affected by a credit union or a caisse changing its name, amalgamating, or entering into similar agreements.

Nova Scotia Credit Union Deposit Insurance Corporation (NSCUDIC) provides deposit insurance for credit unions and caisses populaires in Nova Scotia. Working with Atlantic Central and the Nova Scotia Department of Finance, NSCUDIC provides the most comprehensive deposit insurance and stabilization programs of any financial institution in Nova Scotia.

Have Questions about Deposit Insurance for your area?