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Gic Full Form Guaranteed Investment Certificate - Definition & Advantages of Gic

What is Gic (Guaranteed Investment Certificate)?

Guaranteed Investment Certificates (GICs) are fixed income securities that offer investors a guaranteed return on their investment, along with the assurance of preserving their principal amount. While GICs are renowned for their safety and stability, they do come with certain limitations. In this article, we will delve into the full form and features of GICs, discuss the different types available, highlight their advantages, and offer some considerations for potential investors.


Different Types of Guaranteed Investment Certificates:

  1. Standard GIC: This is the most common type of GIC, offering a fixed interest rate for a specific investment term. The term can range from one to five years.

  2. Cashable or Redeemable GIC: These GICs provide flexibility as they can be cashed in before the maturity date. However, they typically come with lower interest rates compared to standard GICs.

  3. Market-Linked or Variable Rate GIC: These GICs have their interest rates linked to market conditions. This means that the return on investment is influenced by the performance of specific market indicators.


Advantages of GICs:

GICs offer several advantages that make them an attractive investment option:

  1. Safety and Security: GICs are backed by the Canadian government, providing investors with peace of mind and ensuring the safety and security of their investments.

  2. Fixed Interest Rate: GICs offer a predetermined interest rate, allowing investors to know precisely how much return they will earn on their investment.

  3. Liquidity: GICs can be cashed in at any time, providing investors with access to their funds when needed. However, cashable GICs may come with certain restrictions or lower interest rates.

  4. Flexibility: GICs come with various terms and conditions, allowing investors to choose an investment period that aligns with their financial goals and requirements.

  5. Tax-Advantaged: GICs offer a tax-advantaged way to save for retirement or long-term goals. The interest earned on GICs is generally not subject to capital gains tax.



Guaranteed Investment Certificates (GICs) present a compelling investment opportunity for those seeking stability and assured returns. With GICs, investors can have confidence in the security of their investment and enjoy a fixed return. If you prioritize peace of mind in your investments, considering a GIC might be the right choice. However, it is essential to compare different GIC products and their features before making an investment decision, ensuring they align with your financial objectives and risk tolerance