Guaranteed Investment Certificates (GICs)
What is a GIC? It’s a safe, secure investment that can suit all kinds of financial goals. A GIC protects your principal, so no matter what happens with the market, you’ll never lose your initial investment. Plus, all of our GICs are CDIC-insured footnote 1.
Stay safe and secure – Your initial investment is 100% guaranteed.- Enjoy a versatile investment – Choose a GIC to suit your needs.
- Save on taxes – Purchase a GIC in an RRSP or TFSA for a number of tax benefits.
What’s the best GIC for you?
GICs come in different forms – let’s find one that will help you reach your investing goals.
Non-Cashable Investments
- Lock in your money for a higher rate of return.
- Got some time to grow your money? A non-cashable GIC can bring a higher rate of return than a cashable investment, as long as you’re willing to leave it alone for longer.
Ready to compare? Explore our GIC list for the latest GIC rates.
Cashable Investments
- Get competitive returns without a big commitment.
- After you purchase your investment, you can cash out the GIC when you like. It’s a great choice if you might want to access your cash, but you’d like to earn as much interest as you can in the meantime.
- For example, if you opt for a 1-year cashable GIC, you can take out your money before it matures, no strings attached. Of course, if you leave it in for the full year, you’ll continue to earn interest on it.
Ready to compare? Explore our GIC list for the latest GIC rates.
Market-Linked Investments
- Enjoy 100% principal protection and the potential for a high return.
- Interested in equities? If you’re looking for higher growth linked to the stock market, these hybrid GICs may be for you. You can earn great returns when the market performs well, but even when it dips, your initial investment is protected.
Ready to explore market-linked GICs? Learn more about our Progressive GIC Series.
U.S. Dollar Investments
- Take advantage of this option if you have U.S. dollars you want to grow.
- Deposit U.S. dollars and earn interest in U.S. dollars – it’s a convenient and safe option when you’re looking to earn some interest on your U.S. funds.
Ready to compare? Explore our GIC list for the latest GIC rates.
GIC FAQs
- A GIC is a low-risk investment that guarantees the money you put into it (the principal) and allows you to earn interest over a set period of time (the term).GICs typically have a fixed term, often with a fixed interest rate, so you’ll know exactly how much you’ll have when the term is up and your GIC is cashed out.For example: Say you invested $2,000 in a 2-year GIC at a 2.00% interest rate. In two years, you’d have $2,080.80 (with compounded interest). Typically, the longer the GIC term, the higher the rate of return, so the more you invest and the longer you invest it for, the more you can earn.
There’s no one GIC rate – the rates vary from one GIC to another, and they’re tied to the current interest rates set by the Bank of Canada. Some GIC rates in Canada even depend on market performance. Check out GIC rates.
If you’re holding a GIC in a non-registered account, it’s subject to tax each year. So, if you have a GIC with a three-year term, the interest you earn on each anniversary will be taxed – even if it hasn’t been paid out to you yet. If you hold a GIC in an RRSP, you’ll only pay tax when you withdraw your money.
Yes, you can! Cashable GICs can be redeemed before the term ends, although the window can differ according to the type of GIC. Non-cashable GICs can’t be redeemed early without paying a penalty.
This type of GIC allows you to withdraw money before the end of your term – handy for when a big purchase pops up or your investment plans change. How much you can redeem, when, and how it will affect your returns will depend on what type of GIC you have.
Non-cashable GICs are just as they sound: they’re investments that can’t be cashed in before the end of their term. However, they usually offer higher rates of return than cashable GICs.
The main difference is the level of risk: with a GIC, your principal (and often your return) is guaranteed, but a mutual fund can gain or lose value as the market changes. There are several other important differences, too – learn more about investing in mutual funds.
GIC resources to help you choose
Differences between GICs and mutual funds explained
A detailed look at how GICs and Mutual Funds compare and how they can benefit your investment goals.
How to start investing
A GIC is a good way to start investing. Here are some other things to consider as you begin to grow your money.
Invest in a GIC
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Footnote || details Interest is calculated daily, paid monthly, semi-annually, annually or compounded annually and paid at maturity. The indicated interest rate subject to change at any time. The terms and conditions of this offer, including its overall availability, are at the sole and absolute discretion of BMO and are subject to change at any time without prior notice.
The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.
This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial advisor and/or tax information applicable to their specific situation.
All investments, including these, are subject to risk, including the possible loss of principal.
Footnote 1 details CDIC limits apply.
Footnote 2 details This calculator should not be used as a financial planning tool as it is designed for illustration purposes only.
Footnote star detailsGuaranteed minimum rate of return of 2.50% after 5 years. Rates are not per year and are not compounding. Potential return of up to 40.00% is based on Market Performance after 5 years.
Footnote double dagger detailsBMO Fund Linked GICs are issued by Bank of Montreal Mortgage Corporation and guaranteed by Bank of Montreal. The principal amount of a BMO Fund Linked GIC is guaranteed and is repayable upon maturity, but there is no guarantee of earning any return linked to the performance of the underlying securities. The rate of return for the term payable, will be the return on the Reference Portfolio but will not be less than 2.50% and not more than the Maximum Rate of Return of 40.00% for the term. The return on the Reference Portfolio, if any, is determined without reference to any dividends or distributions paid on the securities and is the simple average of the percentage changes in the value of each underlying security in the Reference Portfolio over the term of the GIC. The rate of return for the term is not an annual rate but is the rate of return over the entire term of the GIC. If market disruptions or other special circumstances affect the calculation of the return, the calculation agent may adjust or delay the calculation or payment of interest, estimate the value of an underlying security, replace a security and/or determine the amount of interest, if any, that may be payable in an alternate manner. Past market performance is not an indicator of future market performance. The terms and conditions for BMO Fund Linked GICs are available at your local BMO Bank of Montreal branch.
This message is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance.
Investment professional refers to Personal Bankers, Financial Planners, Investment and Retirement Planning and Investment Specialists that are representatives of BMO Investments Inc.
Some Financial Planning, Investment & Retirement Planning services - including mutual funds investing advice - are provided by BMO Investments Inc., a mutual fund dealer and separate legal entity from Bank of Montreal. Learn more about the services we do and don’t provide - and how we get paid.
“S&P” is a trademark of The McGrawHill Companies, Inc. “TSX” is a trademark of the TSX Inc. These marks have been licensed for use by Bank of Montreal. The BMO Canadian Market GIC is not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in the BMO Canadian Market GIC.
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