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GICs and Similar Instruments

Gears with words'Quality' and 'Certificate'

“GICs” has become the common term for certain debt certificates issued by a select group of institutional borrowers in Canada, those being members in good standing of the Canada Deposit Insurance Corporation.

There are four groups of CDIC members: banks, trust companies, credit unions, and mortgage companies, those members displaying the CDIC logo. Banks issue term deposits; trust companies and credit unions issue guaranteed investment certificates; and mortgage companies issue insured debentures.

CDIC insurance covers $100,000 per depositor per institution when the original term to maturity does not exceed five years.

When searching GIC rates, you may see quite a difference when comparing those being offered by members in each of these four groups. For instance, you may find a five-year GIC rate offered by a small mortgage company is much higher than the rate being offered by a large bank. In either case, if your deposit is no larger than $100,000 and for no more than five years, your deposit has the same degree of safety. Additionally, you may find other flexible features being offered, such as transferability and the option to cash in at full face value or re-register in the name of the heir(s) due to the death of the depositor.


Competitive GICs & HISA rates:

Major Canadian Schedule I bank

  • 1 year GIC rates 2.00% to 2.40%
  • 5 years GIC rates 2.21% to 2.46%

Credit Unions

  • 1 year GIC rates 2.00% to 2.30%
  • 5 years GIC rates 2.20% to 2.50%

HISA (High Interest Savings Account)

  • Cashable with rates ranging from 1.55% to 1.95%

For deposits in excess of $1 million please call us directly at 604-659-8051 for an enhanced rate.

For competitive GIC rates that are cashable or have longer maturities email us directly at cfg@raymondjames.ca or call us at 604-659-8051.

**** Rates as of July 9th, 2019. Rates may be subject to change.


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