The Best GIC Rates in Canada​

Are thinking about purchasing a Guaranteed Investment Certificate (GIC)? Canada has an impressive range of options when it comes to investments, with many financial institutions offering high-interest GIC rates. Across the country, you’ll find a variety of products that provide short or long-term gains for Canadian citizens. Here, we’ll take a look at these service providers and help you to quickly discover the best GIC rates…




Best Short-term GIC Rates in Canada

When you buy a Short-term Guaranteed Investment Certificate (GIC), you’re making an agreement to lend the financial institution money for a period of between 30 to 365 days. The financial institution guarantees to return back the deposited amount at the end of the term. You will also earn some interest at the rate agreed upon, but longer the term, the higher the interest rate you’ll earn.

Best 30-Day GIC

Term: 

30 Days

Type: 

Non-registered

Minimum investment: 

$5,000

Interest paid: 

at maturity

Term: 

30 Days

Type: 

Non-registered

Minimum investment: 

$500

Interest paid: 

at maturity

Term: 

30 Days

Type: 

Non-registered

Minimum investment: 

$1,000

Interest paid: 

at maturity

Best 90-Day GIC

Term: 

90 Days

Type: 

Non-registered

Minimum investment: 

$1

Interest paid: 

at maturity

Term: 

90 Days

Type: 

Non-registered

Minimum investment: 

$1,000

Interest paid: 

at maturity

Term: 

90 Days

Type: 

Non-registered

Minimum investment: 

$100

Interest paid: 

at maturity

Best 180-Day GIC

Term: 

180 Days

Type: 

Non-registered

Minimum investment: 

$1

Interest paid: 

at maturity

Term: 

180 Days

Type: 

Non-registered

Minimum investment: 

$1,000

Interest paid: 

at maturity

Term: 

180 Days

Type: 

Non-registered

Minimum investment: 

$100

Interest paid: 

at maturity

Best 1-Year GIC

As the name suggests, the GIC guarantees that you’ll receive the principal you invest along with the agreed interest amount. However, when browsing around for the right instruments, you should know that different financial institutions offer individual rates of interest and other terms and conditions. Check out our page on offerhub.ca for detailed information about the best GIC rates available before making your choice.

Term: 

1 Year

Type: 

TFSA

Minimum investment: 

$1

Interest paid: 

annually

Term: 

1 Year

Type: 

TFSA

Minimum investment: 

$100

Interest paid: 

at maturity

Term: 

1 Year

Type: 

TFSA

Minimum investment: 

$1,000

Interest paid: 

annually

Term: 

1 Year

Type: 

USD

Minimum investment: 

$5,000

Interest paid: 

annually

Term: 

1 Year

Type: 

USD

Minimum investment: 

$1

Interest paid: 

annually

Choosing the Right Guaranteed Investment Certificates

You can choose from different GICs depending on your wealth-building strategy like, for instance, short-term redeemable GICs or long-term redeemable GIC.

Given a choice between a guaranteed and non-guaranteed investment certificate, you could consider choosing the option with a guarantee. That’s because non-guaranteed or non-registered GICs, as they are also called, are not invested in any of the existing registered savings deposits including RDSP, RESP. RIR, and RESP. You’ll invest your money for a specific time, or “term” against assurance that you’ll receive a specified amount of interest subject to the condition that you don’t redeem the certificate before the maturity date. This interest amount varies directly with the term. The longer you keep your money invested, the higher will be the interest you earn.

Should you choose to invest in the redeemable GIC, expect to receive a lower rate of interest because of the flexibility to redeem the certificate at any time. Investing in market-linked GICs is another option. These certificates are connected to the movements of the stock market. While you may not get any assurance of receiving returns, you do have the possibility of getting much higher Return on Investment (ROI) as compared to the regular non-registered GIC investment option.

Benefits of Short-term GICs

Before you invest in a short-term GIC, it’s important to consider the following features and restrictions.

  • The Canadian Deposit Insurance Corporation offers protection for the deposited amount up to set limits except GICs with terms over five years and US dollar GICs.
  • Short term GICs provide you with the opportunity of reinvesting your earnings sooner especially if you’re expecting an increase in interest rates in the near future. You can take advantage of the possibility of higher interest rates as well as respond to interest rate changes. That’s the benefit of investing in a short-term GICs, but you should ask yourself what will happen when the reverse comes true. It means you’re also taking a risk just in case there’s a decrease in the interest rates – you would have missed the current rates for long-term GICs.
  • Short-term and Cashable GICs offer maximum flexibility, without committing yourself for a long-term. It’s an ideal investment alternative if you want to maintain maximum access to your funds and still earn a guaranteed return.
  • Note that most financial institutions won’t allow you to cancel the contract before it matures if you have a short-term GIC. That means most short-term GICs are non-redeemable. Make sure you’ve read through the fine print before buying a short-term GIC.
  • You may consider a high-interest Savings account, which usually has an open term and may offer higher interest rates than short-term GICs. However, make sure you’ve checked the transaction fees when looking at high-interest savings accounts. The transaction costs could reduce your interest.

What are Cashable GICs?

A cashable GIC is a one-year term investment and an excellent choice for anyone who thinks the interest rates might increase in the near future. When you purchase a cashable GIC, you’re agreeing to lock in your investment for a closed period of either 30 days or 90 days before you can cash it out at any time without paying any penalty.

Benefits of investing in a Cashable GIC

Some of the factors you must look at when choosing which investment is right for you, including your risk tolerance, your time horizon, and your goal. Do you want to have your money readily accessible? Are you willing to make a higher level of risk investment to get higher returns? When do you intend to have the proceeds of your investment? These are critical questions to ask yourself even as you choose from the different types of GICs. Cashable GICs will make you money readily accessible which means you will enjoy the flexibility of this liquid investment. However, you may receive lower interest rates compared to non-redeemable GICs.

Your primary goal should, therefore, be having access to your money and not getting the high-interest rates. It’s the perfect investment option if you’re anticipating a major purchase shortly. You don’t have to lock in your money for a set term when you’re expecting an increase in the interest rates. Cashable GICs give you the opportunity to quickly redeem your money and reinvest it somewhere else where you can earn higher returns.

High-interest savings accounts tend to move with the market changes and fluctuations. With a Cashable GIC, you can lock in your money at the current interest rate meaning you won’t have to worry about any declines in the interest rates. Which one seems to offer more benefits? Cashable GICs will present a better investment opportunity in a market environment where interest rates are dropping.

It’s, however, important to note that withdrawing your money during the first 30 or 90 days, when the GIC is supposed to be locked in would result in no interest at all. We’ve already pointed out that cashable GICs tend to offer slightly lower interest rates compared to what’s offered on non-redeemable GICs. These are some of the things you would have to face when investing in a cashable GIC. You may refer to them as drawbacks, disadvantages or restrictions!

Before investing in a cashable GIC, note that there’s usually no interest penalty and you receive the contract interest rate until the time of encashment. You will be required to leave a minimum remaining balance for you to continue holding the cashable GIC. And don’t forget that you will have to lock in your money for the first 30 or 90 days before the GIC becomes cashable. If you choose any redeemable GIC, make sure you’ve gone through every detail and the restrictions and terms of the product.

 

What is a Guaranteed Investment Certificate?

A Guaranteed Investment Certificate is a fixed income investment typically issued at Canadian banks and trust companies. The GIC provides one of the safest ways for Canadians to invest their money, as it guarantees the protection of the principal or original investment, as well as the rate of return or interest rate. Banks usually require a minimum deposit of $500. Investors who apply for GICs agree to lend the bank the money for a fixed period of time, which can range from 30 days to 10 years. The interest you’ll receive at maturity will be based on that agreed term – so, the longer the term, the higher the rate of return. Therefore, your investments can potentially double when you secure the best GIC rates.

Types of Guaranteed Investment Certificates

There are different types of GICs that cater to the specific needs of investors. Whether you intend to save for the short-term, or you want to invest for your family’s long-term future, there’s a GIC tailored to your needs. Here are three Registered GICs you should take a look at:

  • Registered Retirement Education Plans GICs are government-approved savings accounts for Canadians’ future retirement. Investors can make payments into these accounts until they are 71 years old.
  • Registered Education Savings Plan GICs are government-approved savings accounts that parents can purchase for their children’s education, particularly post-secondary education.
  • Tax-Free Savings Account GICs are designed to help Canadians who want to increase and withdraw their investments tax-free.

Guaranteed Investment Certificate or GIC is a type of Canadian investment offering guaranteed return rate for a fixed period. This type of investment is common among banks or trust companies. Due to its low-risk profile, the GIC’s guaranteed return is lesser than other investments like mutual funds, stocks and bonds.

Best GIC Rates in Canada

The best GIC rates in Canada can be found from credit unions than on large banks. Although you may be loyal to your lender, it does not mean your lender offers the best GIC rates. It would be wise to shop around especially when the interest rates are low. Those interest rates provided by the banks may stagnate behind online banks and credit union banks.

Best Redeemable Gic’s in Canada

Redeemable GICs are the most convenient forms of GIC which give flexibility to your hands. If you want to invest your money in a safe instrument but also want the flexibility of withdrawal anytime you want to, Redeemable GICs is the best choice for you. Redeemable GICs like all other forms of GICs provide you with a fixed term of investment and a guaranteed return. However, the advantage of redeemable GICs is if you need the fund sooner, you can choose to withdraw the fund at an earlier time on specified early redemption dates.

Compare Redeemable GIC rates in Canada

Offerhub.ca lists a wide variety of Redeemable GICs to give you the flexibility to choose from. Offerhub.ca knows that you want to see all the options before you invest your hard-earned money. Hence, the list below provides you with a range of Redeemable GICs currently available in the market with a range of maturity dates, rates and issuer companies.


Best USD GIC Rates

In Canada, some financial institutions offer the ability to invest in the currency of the U.S that is the dollar. It is important to find out and compare the different rates offered by banks for the best choice.

What are foreign currency GICs?

A foreign currency GIC allows you to access the currency of the country in question with still bearing an interest. In Canada, one can invest in the Yen of Japan, the pound of Britain, the Euro and the dollar of the U.S. However, the latter dominates the GICs.

Why invest in foreign currency GICs?

A GIC of an external currency allows you to access the currency of the country that it is associated with, if in future its need arises, and interest is earned when it is invested. However, foreign currencies GICs are nowhere found in the travellers’ list. Both U.S. and Canadian dollars are followed by the majority of investors and should you suspect a significant decline in the Canadian Dollar in the future, as a result of the decline, you would get a profit if you would invest in U.S. dollar GIC. Therefore, diversification of your cash and preservation of your power to purchase would be possible via the addition of an external currency GIC to your investment selection.

Are there any drawbacks to investing in foreign currency GICs?

Here are some of the things you should22 consider when choosing to invest in foreign currencies;

  1. CDIC insurance does not cover the external currency GICs hence, no guarantee of getting the money back.
  2. The rates on currency GICs of foreign nature can be minimal, in comparison to GICs from Canada.
  3. The banks sell the investments and a high rate and buy at a low rate hence diminishing your returns
  4. For the U.S. GICs and term deposits are not offered within registered accounts.


Best Short Term GIC Rates in Canada

Guaranteed Investment Certificates (GICs) are investments which not only guarantee your initial investment but also provide a fixed rate of return over a specified period. Short-term GICs are usually for less than a year. The short-term maturity date helps you plan your expenses efficiently while earning interest on funds that you don’t need immediately.

Should you invest in Short-term GICs?

If you’re looking for a way to invest your money towards a short-term goal, short-term GICs could be an excellent option. Short-term GICs are a great option if you want to accumulate funds fast for a big-ticket purchase like a home, new car, or a down payment on a mortgage.

GICs are appropriate for anyone who wants to guarantee their principal amount since they provide a guaranteed payout just as the name suggests. You have probably never understood why many investors choose to have short-term GICs in their portfolio. When you invest in a short-term GIC, you would be aware of the amount you’re going to receive as soon as the term is over. You won’t be worried about market price fluctuations because the invested amount remains safe and sound. You won’t have to worry about losing your principal.

Benefits of Short-term GICs

If you want to have an investment that offers a liquid, yet stable rate of return, a short-term GIC would be the right choice. Remember your money won’t be locked for an extended period of time as it happens with long-term GICs.

Short-term GICs gives you the flexibility you need in the current interest rate environment. Despite the fact that they offer lower interest rates, Short-term GICs remains a good option for anyone who wants to park a portion of their money. They provide a safe way of investing funds while saving for large purchases and future investments.


Best 1-Year GIC Rates in Canada

The one-year GICs offer the best possible combination of competitive interest rates and flexibility of investment. They do not have any long-term commitment and are ideal for funds that you may have in your hand now but do not need for the next year. The interest rates on one-year GIC are higher than the 180 days GIC because of the longer period of investment.

 

One-Year GIC Rates Canada

One year GICs rates listed above are the best possible options available in the market right now which not only will provide you with good returns but will also ensure that your principal is secured.

 

Best 2-Year GIC Rates in Canada

We have compiled a list of popular two-year GIC’s available in the market We want you to make the most out of available options in the market. The list is revised regularly to come up with the best solution for you.

Advantages of 2-Year GIC Rates in Canada

 

Are you saving for an expense that you need to incur after two years? GICs with a two-year maturity is the right choice in this case. Not only will GICs invest the funds and earn you interest, but it will also ensure that your principal amount remains intact and is not lost in the process of making money from money. Two-year maturity GICs make sure that your fund is available to you when you need them for your expenses.

 

Best 3-Year GIC Rates in Canada

We make shopping for the best 3-year GIC rates in Canada easy. It is often said that the longer a fund is invested the better is the return on the fund. The beauty of GIC is that irrespective of the time limit of investment all funds are guaranteed. Three-year GICs provide options for you to invest your funds for the next 3 years and provide you superior interest in return.

 

It is true most Canadian GICs are classified by Canadian dollars, but, you will also find some institutions that provide GICs in other foreign currencies,  with the most popular being U.S. currency. Here are a couple of reasons why you should consider purchasing GIC products.

 

Should I Purchase in Foreign GIC Currencies?

By investing in foreign currency GICs, you can acquire the currency of the country associated with it. This provides you with the opportunity to make future investments more profitable. For instance, if you decide to take a trip outside Canada in 6 to 12 months and suspect the value of the currency in Canada might drop before you decide to leave the currency, buying foreign currency GIC is a great way to take advantage of the current situation before packing your bags. However, this may not be a wise option for travellers as many investors rely on both U.S. and Canadian dollars, so you ought to stick to both these currencies. Purchasing U.S. GIC is a profitable move. By investing in the GIC of foreign countries, you can retain your buying power and diversify your investment portfolio.

What currencies can I choose from?

U.S. GICs are the most popular in Canada. This is because the U.S. is Canada’s largest trading partner. However, some financial institutions offer GICs in several profitable currencies including the Japanese Yen, Pound and Euro.

Disadvantages of GICS in foreign currency

The following are a few disadvantages of GICS in foreign currency:

  • GICs in foreign currency interest rates are nominal when equated to Canadian GICs
  • Similar to any other foreign currency dealings with the bank, they will buy it somewhat lower than the average market rate. However, they will sell the foreign currency at a higher rate. This is why the bank generates profits.
  • Foreign currency GICs are not backed by CDIC insurance, which means that if your financial institution fails, you may not have the option to get your money back.
  • Term deposits and U.S. GICs are not provided by registered accounts

GICs in RRSPs

GICs can be held and purchased in both registered and non-registered accounts. Registered accounts constitute special tax-sheltered saving plans that are government approved. On the other hand, non-registered accounts are similar to regular bank accounts. Take a look at how RRSPs work and how you can use them for your benefit.

 

What are RRSPs?

RRSPs are accounts that have been designed to help Canadians save money after retirement. These plans enable you to contribute a specified amount of money every year till you hit 71 and deduct this contribution from your taxable income. The maximum contribution can range up to 18% of your income. Additionally, RRSPs can be accessed through most financial institutions. You are also allowed to hold a wide diversity of investments including bonds, GICs, stocks, investments, etc.

Benefits of holds GICs in RRSPs

Here are some key benefits of holding GICs in RRSPs:

  • It decreases the amount of income tax you pay. You can deduct a maximum of 18% from your taxable income, allowing you to save a significant amount of money.
  • Unlike other forms of investments that are insecure and dependent on the stock market, RRSP GIC gives you a fixed amount of interest over a specific time period. This ensures you can determine your return even prior to making an investment.
  • With GIC, your principal will always be guaranteed; this makes it a comparatively safer form of investment.
  • As long as it’s in the RRSP account, your money can grow tax-free. You only pay tax on the money that has been withdrawn from the RRSP account.

GIC in RESPs

Most first-time investors are not aware of the fact that they can purchase GICs in both registered and non-registered accounts. Some tax-sheltered government accounts include TFSAs, RDSPs, RRSPs, and (RESPs), registered education savings plans. Take a look at how you can use RESPs to save money for your child’s education.

What are RESPs?

RESPs are saving accounts that have been approved by the government for post-secondary education. Most parents typically open this account in anticipation of their child’s future. There is no annual limit to RESPs opened since 2007; however, there is a lifetime contribution limit of $50,000. While the federal government along with some provincial governments offer grants to enhance RESP contributions, these do not include the limit, making it a safer option if you want to send your kid off to college. RESPs can remain open for maximum 35 years.

Benefits of holding GICs in RESPs

Some major benefits include:

  • You can rest assured the principal will be returned to you because it’s in a GIC, making it a safer investment option.
  • Similar to holding GICs in TFSAs and RRSPs, with RESPs, your income is not taxed. The tax is payable by the receiver of the RESP if he or she received money for educational expenses. Since most students have little or no income, the tax may only be nominal.

GICs in TFSAs

TFSA is a tax-free saving account that is registered by the government. Take a look at how TFSA-eligible GICs works and how you can use it to your benefit:

What are TFSAs?

TFSAs were introduced by the Federal government in 2009 to help Canadians withdraw and grow their savings tax-free. At first, citizens could only contribute to $5,000 per year however; the annual contribution has now been increased to $5,500 per year in 2013.

Benefits of holding GICs in TFSAs

Like GICs in RRSPs, contributions are non-tax-deductible. Here are a few major benefits of holding GICs in TFSAs:

  • Since both your capital gains and interest are tax-free your savings are allowed to grow tax-free.
  • Unlike RRSP, in TFSAs, your withdrawals are also tax-free. This allows you to save more.
  • Like other GIC options, your principal is guaranteed. This makes TFSAs a good option as your principal will also be returned to you.

Best TFSA GIC Rates in Canada

GIC (Guaranteed Investment Certificate) is an investment that guarantees that you get your principal amount back after a fixed period of time. This means that the principal amount is not at any risk unless banking or lending institution dissolves. Otherwise, the rates differ with different banks and the return is determined by time and the rates.

Best TFSA GIC Rates in Canada

The main advantages of having a GIC over a TFSA are, there is no tax on capital gains and interests accumulated. Another advantage is that, withdrawal if completely free and finally as stated above there is a guarantee to return of principal amount initially invested.

Term: 

1 Year

Type: 

TFSA

Minimum investment: 

$1

Interest paid: 

annually

Term: 

1 Year

Type: 

TFSA

Minimum investment: 

$100

Interest paid: 

at maturity

Term: 

1 Year

Type: 

TFSA

Minimum investment: 

$1,000

Interest paid: 

annually

Best TFSA GIC Rates

Talking about the issue of best rates, a customer ought to know primarily that different institutions in the banking and lending sector offer different rates. In order to identify the best rates, it is prudent to compare the rates of the various banking and lending institutions. The best rates should suit your requirements across an array of choices.

What do you mean by TFSAs?

Now, as one makes the decision to invest in understanding what TFSAs are all about is crucial TFSA, an account that exempted from taxation, is a service offered to customers with the need to save money and withdraw money completely avoiding taxes. The best offers from banks include free transfers. This means that investment incomes like capital gains and dividends are not taxed in a TFSA.

A TFSA further allows carrying forward of the balance to the following year. In Canada, this system was introduced to favor the Canadians allowing them initially to contribute up to $5000 each month but it finally went up to $5500 in the beginning of 2013.

Most of the financial institutions in Canada have the operations of TFSA available to their customers of the age of 18 years and above. Besides TFSA being a good way of avoiding taxes, one can put in different types of investments like GICs, mutual funds, and stocks.

 

Best Market-Linked GIC’s in Canada

Well, if you’re are looking to get a higher return on your investment but at the same time you want to guarantee the safety of your capital, then a market-linked GIC would be an appropriate choice. You should, however, be willing to accept a variable rate of return and not a guaranteed one. Also known as Equity-Linked GICs, they give you the potential for a higher rate of return than the traditional GIC.

Note that this will depend on the market performance over a period of three or five years. Basically, these products are diversified solutions that involve the combination of how mutual funds, returns of stocks, and/or stock indices perform with the benefit of principal protection. Investors can enjoy the best of security and higher return potential in one packaged solution.

How does Market / Equity-linked GIC Work?

Probably the first thing you need to understand about market-linked GICs is what they promise. One, these products promise a higher rate of return when the Canadian Stock markets go higher. Of course, this doesn’t mean that you’re going to get 10 percent return when the stock market goes up by 25 percent. You might receive about 4 percent instead. What happens is that you receive a partial benefit whenever the stock market goes up. Generally, a three-year GIC whose return is usually linked to how the S&P/TSX 60 Index performs. This index is responsible for measuring how some of Canada’s largest companies perform in the stock market.

Additionally, market-linked GICs guarantee security or rather the safety of your capital (the original investment) up to the acceptable coverage limits. So, we’re saying you’ll receive a return when the S&P/TSX 60 index goes up over the contract period, but what will happen if the market stays the same or even declines?

You won’t receive any return on your market-linked GIC. That’s where the difference between traditional GICs and market-linked GICs comes in. Your return depends on whether and how much the equity market or rather the index increases over the term. With market-linked GICs, just the investment is guaranteed – but the return is not.

It’s important to note that financial institutions offer different products on this model. There are some financial institutions which offer market-linked GICs that guarantee a small return, whether the stock index declines or stays the same.

There are two ways to which financial institutions limit the variable return payment for their market-linked GICs:

  • maximum returns
  • participation rates

The participation rate is defined as the percentage at which the GIC will participate in the equity market’s return. For example, you purchase a market-linked GIC when the index base level is 1,000 with a participation rate of 60 percent. If after the 3-year period, the index settlement level is 1,364, your return would be limited to 60 percent of 36.4 percent, or 21.84 percent. That comes to 7.28 percent a year (not compounded). If you had invested $20,000, your return at the end of the 3-year term would be $4,368.

Best US Dollar, Foreign Currency GIC Rates in Canada

If you’re looking to invest in Guaranteed Investment Certificates (GIC), your search will reveal that different financial organizations allow you to buy the products in Canadian Dollars, U.S. Dollars, and other global currencies.

A foreign currency GIC allows you to access the currency of the country in question with still bearing an interest. In Canada, one can invest in the Yen of Japan, the pound of Britain, Euro and the dollar of the U.S. However, the latter dominates the GICs.

Best US Dollar, Foreign Currency GIC Rates in Canada

Term: 

1 Year

Type: 

USD

Minimum investment: 

$5,000

Interest paid: 

annually

Term: 

1 Year

Type: 

USD

Minimum investment: 

$1

Interest paid: 

annually

Term: 

1 Year

Type: 

USD

Minimum investment: 

$1,000

Interest paid: 

annually

Investing in GICs allows you access to the currency of the country issuing the investment product and has several advantages. While the most commonly traded currency is the US Dollar, which is the global reserve currency, your bank may offer you GICs in the British Pound, Japanese Yen, and Euro.

How does a US Dollar GIC work?

Say, for instance, you intend to travel to the US in the next six months. You can buy a US Dollar GIC and set aside the funds you’ll need. Not only will the investment earn interest for you, but it will also lock in favourable rates if you think that the Canadian dollar value is likely to drop. You can also buy the US Dollar GICs purely for investment purposes. You’ll add diversity to your portfolio and earn good returns from currency appreciation.

Investing in Foreign GICs May Have a Few Downsides

While purchasing GICs is a good option, you may want to keep certain factors in mind.

  • You can buy US Dollar GICs and term deposits with a registered account.
  • You’ll likely earn a lower rate of interest in a foreign GIC as compared to the interest on a Candian Dollar GIC.
  • Foreign currency GICs don’t carry CDIC insurance. In case the issuing bank or financial institution fails, you have no assurance of getting your investment back.
  • When investing in GICs, you should be aware of the bank’s “spread.” Each time the bank trades in foreign currency, they add a spread of 1% to 1.5% above the market rate when buying. Banks also sell at a similar rate below the market value.

If you would more information about how GICs work, log onto our offerhub.ca website and we’ll give you in-depth details that will help you make a choice.

Why invest in foreign currency GICs?

A GIC of an external currency allows you to access the currency of the country that it is associated with, if in future its need arises, and interest is earned when it is invested. However, foreign currencies GICs are nowhere found in the travellers’ list. Both U.S. and Canadian dollars are followed by the majority of investors and should you suspect a significant decline in the Canadian Dollar in the future, as a result of the decline, you would get a profit if you would invest in U.S. dollar GIC. Therefore, diversification of your cash and preservation your power to purchase would be possible via the addition of an external currency GIC to your investment selection.

Are there any drawbacks to investing in foreign currency GICs?

Here are some of the things you should22 consider when choosing to invest in foreign currencies;

  1. CDIC insurance does not cover the external currency GICs hence, no guarantee of getting the money back.
  2. The rates on currency GICs of foreign nature can be minimal, in comparison to GICs from Canada.
  3. The banks sell the investments and a high rate and buy at a low rate hence diminishing your returns
  4. For the U.S. GICs and term deposits are not offered within registered accounts.
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