You can buy GICS at banks, trust companies, credit unions, caisses populaires and some investment firms.
4 quick steps
1. Decide on how much to invest and for how long
Your money will be locked in for that term. You will have to pay a penalty for withdrawing your money early. If you think you may need to get your money out early, buy a redeemable or cashable GIC that can be cashed anytime without penalty.
2. Decide on the type of GIC
If you want a guaranteed rate of interest, choose a fixed-rate GIC. If you're comfortable with varying interest rates, consider an index-linked or market-linked GIC.
3. Shop around for interest rates
Compare GIC rates online for the term you've chosen. Talk to some banks and financial institutions. Ask if you can get a better rate than the one posted.
4. Choose a financial institution and GIC
If you don't already have an account with them, you’ll need to set one up. Bring 2 pieces of ID with you. At least one of them must be from the government. The list of acceptable IDs is the same as for opening a bank account. You can pay by cheque or transfer from a bank account or another GIC that is maturing.
If you want a guaranteed rate of interest, choose a fixed-rate GIC. If you're comfortable with varying interest rates, consider an index-linked or market-linked GIC.
Compare GIC rates
To compare interest rates for GICs from banks and other companies across Canada, visit the CANNEX website.Then use this GIC Interest Rate Comparison Calculator to compare the difference in accrued interest between 2 rates over different deposit amounts and time periods.
Did you know?
Insurance companies
sell an investment similar to a GIC. It's called a GIA (Guaranteed
Interest Annuity or Guaranteed Interest Account).