GICs are back in financial style!

27/07/2022 | Wealth Management

It’s been over 15 years since GICs have paid a decent amount of interest. And now, with the Bank of Canada raising interest rates by 2.25% over the past 5 months, investing your money in a GIC is officially back in style.

A Guaranteed Investment Certificate (GIC) pays a guaranteed rate of return by the company that issued it and the principal amount invested is further protected up to $100,000 by the Canadian Deposit Insurance Corporation (CDIC). This guarantee delivers predictable returns, and peace of mind knowing that your money is safe.

Investing in a GIC today provides more return than a high-interest savings account. Using Manulife Bank as an example, their High-Interest Advantage account pays 1.5% on cash balances compared to 4.00%* on a one-year GIC.

GICs are not meant to be a replacement for the long-term investments in your portfolio. Instead, they are there to provide protection and security for money you may need in the short term.

In this economy, it is important to have your money working in your favour in both the short-term and the long-term. Connect with your CAPCORP advisor or email us at to discuss if GICs are the right fit for your portfolio.

* Rate as of July 26th, 2022. Rates subject to change


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