Guaranteed Investment Certificate (GIC)
A GIC is a Guaranteed Investment Certificate. That means that you are guaranteed a set rate of return on the funds you invest for the period of time that you invest it for.
A GIC can be a great way to save for a specific goal and avoid the temptation to use the money in the meantime. Typically GIC's are locked in for a set period of time (term), so you "set it and forget it" until the term is up.
A cashable GIC has a 1 year term but is cashable after 30 days with no loss of interest. If you cash it in prior to 30 days then no interest is paid.
||Non-redeemable prior to maturity
||Allows for full or partial redemption on the 12 month anniversary date
|5 Yr 20/20
||Allows for 20% of the original investment amount to be redeemed on the anniversary date|