A GIC (Guaranteed Investment Certificate) is one of the safest ways to invest.
You agree to lend the financial institution your money for a set term. You are guaranteed to get that amount back when the GIC has matured. You earn interest on the money you deposit into a GIC.
In general, the longer the term, the higher the interest rate will be.
A GIC that has a value of $100,000 or less and is invested for no more than 5 years is protected through the Canada Deposit Insurance Corporation – CDIC . (Please link the CDIC website to this)
There may be a penalty to get your money out earlier than what was agreed upon at the time of the GIC purchase.
GIC’s can play an important role in diversifying your portfolio.