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Guaranteed Deposits

Daily interest account

Main Features

  • A daily interest account is a liquid investment with an interest rate that remains consistently higher than the rate on a chequing account.
  • The interest rate varies on a daily basis with fluctuations in the market.
  • Money in a daily interest account can be withdrawn at any time.
  • A daily interest account can be either registered or non registered.

Major Advantages

  • A daily interest account can serve as an emergency fund since the capital can be withdrawn at any time.
  • There are no management fees charged on this type of account.

Guaranteed investment certificate (GIC)

Main Features

  • A Guaranteed investment certificate GIC has a fixed interest rate and a set term.
  • Usually, are offered with 3, 6, or 9 month terms, as well as 1 to 20 year terms.
  • When your GIC matures, you have the choice of either cashing it in (if it is non registered) or reinvesting it at no charge.
  • The interest rate varies incrementally depending on the principal invested and is usually higher if you invest for a longer term.
  • GICs can be part of a registered plan like a retirement savings plan (RRSP) or a registered retirement savings fund (RRSF), but can also be non registered.

Major Advantages

  • A GIC adds stability and security to any investment portfolio.
  • With a GIC, you know from day one what your return on investment will be.
  • Since a wide variety of terms is available, you can stagger your GICs over a number of years to benefit from any rise in interest rates.
  • Your deposits are covered for up to $100,000 by Assuris (formely the Canadian Life and Health Insurance Compensation Corporation) when you purchase them through an insurance company.

Warning: The above text is of general nature and is intended for explanatory purpose only. Each of the products described above has its own specific features. Moreover, only the product contracts contain the complete terms and conditions as well as restrictions and exclusions to which they are subject.