What are GICs and Term Deposits?
Guaranteed investment certificates (GIC) and Term Deposits are lower risk investment products that pay a fixed rate of interest for a specific term. The key difference between a GIC and a term deposit is the length of the term. Term deposits generally have shorter terms between 30 and 365 days, and GICs have longer terms between 1 and 5 years.
Both can be held inside registered accounts like a TFSA or RRSP, or purchased as a non-registered investment with regular cash. It grows at a guaranteed rate regardless of which account type it’s in – the account type simply affects how the interest is taxed.
GIC and Term Deposit Options
GIC and Term Deposits listed below require a minimum investment of $500. Based on your situation and goals, you can make your Term Deposit non-registered or registered.
Guaranteed Investment Certificates (GIC) - Non-Redeemable
This popular term deposit is ideal for investors who want a higher rate of return. A non-redeemable GIC does not allow for access to the investment prior to the maturity of the term.
Key features:
- Minimum $500 investment
- Interest calculated daily and paid annually
- Eligible for registered or non-registered plans
- Renewable
- Early withdrawals not permitted
- Selection of terms available
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Redeemable Investment Certificates (Cashable GIC)
A Redeemable GIC can be a great investment for short and long-term goals, like saving for a major purchase, wedding costs, and retirement with a guaranteed rate of return for the period of your term. Ideal for investors who want to access their money at any time while earning a higher interest rate than a savings account.
Key features:
- Cashable without penalty after 30 days
- Minimum $500 investment
- 1 year term available
- Interest is calculated daily and will be compounded on the maturity date
- Eligible for RRSP/TFSA /Non-registered plans
- Renewable
- Automatic Investment Plan option is available
Effective January 1, 2026, Kawartha Credit Union Limited will amalgamate with Libro Credit Union Limited.
On this date, Kawartha Credit Union Limited will begin operating as Kawartha Financial Services, a division of Libro Credit Union Limited.
On this date, Kawartha Credit Union Limited will begin operating as Kawartha Financial Services, a division of Libro Credit Union Limited.