Canada GIC Investing Guide

the Guaranteed Investment Certificates (GICs) in Canada. The GIC is the "fixed-income investment that guarantees the principal and the interest" — the "Canadian bank or the trust company issues the GIC for a fixed term". The CDIC coverage protects the GIC deposits up to $100,000 per the insured category per the CDIC member institution — the "principal plus the interest up to $100,000". The GIC laddering is the "strategy of buying the GICs with the staggered maturities" — the "1-year, the 2-year, the 3-year, the 4-year, and the 5-year GICs" — the "maturity each year provides the liquidity and the rate flexibility". The GIC rates in 2025-2026 range from 3.0% to 4.5% (the "1-year GIC at 3.5% to 4.0%" — the "5-year GIC at 3.5% to 4.5%"). The best GIC rates are typically offered by the "online banks" (the "EQ Bank, the Oaken Financial, the Hubert Financial, the Canadian Tire Bank") and the "credit unions".

GIC Types

Non-redeemable GIC: The "locked-in GIC" — the "cannot be cashed before the maturity date". The "highest rate among the GIC types". The "typical: 3.5% to 4.5% for the 1-year to 5-year term".
Cashable GIC: The "redeemable anytime" — the "lower rate than the non-redeemable GIC". The "typical: 2.0% to 3.0%". The "emergency fund GIC".
Redeemable GIC: The "cashable after the initial waiting period (30 to 90 days)" — the "rate between the cashable and the non-redeemable".
Market-linked GIC: The "return linked to the stock market index (the S&P/TSX 60)" — the "principal guaranteed" — the "upside potential capped" — the "typical: 100% principal protection, 50% to 100% of the index return".
Registered GIC: The "GIC held inside the RRSP, the TFSA, the RRIF, or the RESP". The "registered GIC has the same rate as the non-registered GIC". The "interest grows tax-free (TFSA) or tax-deferred (RRSP)".

GIC Laddering Strategy

5-year ladder: Invest the equal amounts in the 1-year, the 2-year, the 3-year, the 4-year, and the 5-year GICs. When the 1-year GIC matures, reinvest into the new 5-year GIC. The result: the "average of the short-term and the long-term rates" — the "liquidity each year".
Barbell strategy: Invest 50% in the "short-term GICs (1-2 years)" and 50% in the "long-term GICs (5 years)". The barbell provides the "liquidity from the short-term" and the "higher rate from the long-term".
TFSA GIC ladder: The "GIC ladder inside the TFSA" — the "interest is tax-free" — the "ideal for the conservative investors who have the TFSA room".

CDIC Coverage for GICs

Coverage limit: The "principal plus the interest up to $100,000 per the insured category per the CDIC member institution". The "categories: the individual, the joint, the TFSA, the RRSP, the RRIF, the trust".
Multiple institutions: Spread the GIC investments across the "multiple CDIC member institutions" to increase the coverage beyond $100,000. The "EQ Bank, the Oaken Financial, the Canadian Tire Bank, and the credit unions are the CDIC members".
Credit union coverage: The "provincial deposit insurance covers the credit union GICs" — the "DICO in Ontario (up to $250,000)" — the "CUDIC in Alberta (up to $100,000)".

For the high-interest savings accounts and the banking, see our Banking Guide →. For the bonds and the bond ETFs, see our Bond Investing Guide →.