Investment Insights Fixed income

A conservative investment option for short or medium-term investors.
CIBC Investor’s Edge 7-minute read

What is a GIC?

Should I consider investing in a GIC?

How do GICs work?

Traditional GICs

Non-traditional GICs

Market-linked GICs

Variable-rate GICs

What are some advantages of GICs?

What are some disadvantages of GICs?

Key takeaways

1 Although you can hold GICs in both investment and registered accounts, some GICs can only be held in a certain account type. Check the product details before you purchase.

2 If a CDIC member institution fails, GICs issued by the failed member institution are combined with any other eligible deposits (e.g., cash, other term deposits, etc) held at the same institution in the same deposit insurance category and reimbursed up to a limit of $100,000 including interest.

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4 with some possible exceptions such as the death of the GIC holder – check the terms of the GIC you’re considering to understand if any exceptions exist 

Knowledge is your most valuable asset

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