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GIC (Guaranteed Investment Certificate)

A deposit instrument issued by a bank or trust company with a guaranteed rate over a fixed term.

Definition

Principal is guaranteed by the issuer. GICs purchased through a CDIC member bank are CDIC-insured up to $100,000 per insured category. Sold either as conventional GICs (fixed rate, fixed term, typically non-redeemable) or as market-linked GICs (return tied to an index, with a floor at the principal).

Source

CDIC Act; CSA Staff Notice 81-330 (market-linked GICs)

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