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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 secure financial tools providing fixed returns and principal protection. This piece will discuss GICs, their types, benefits, and what to consider before investing. 

Types of Guaranteed Investment Certificates: 

  1. Standard GIC: Common GIC type with a fixed interest rate for a specific term, typically one to five years.

  2. Cashable or Redeemable GIC: These GICs can be cashed before maturity but usually offer lower interest rates.

  3. Market-Linked or Variable Rate GIC: These GICs' interest rates are tied to market conditions, affecting the return on investment.

Benefits of GICs: 

GICs are an appealing investment option due to their several advantages: 

  1. Safety and Security: GICs are government-backed, ensuring investment security.

  2. Fixed Interest Rate: GICs have a set interest rate, giving certainty on the return amount.

  3. Liquidity: GICs can be cashed in at any time, although cashable GICs may have restrictions or lower rates.

  4. Flexibility: GICs offer varying terms and conditions, suiting different financial goals and requirements.

  5. Tax-Advantaged: GICs are a tax-efficient way to save for the long term. GIC interest is generally not subject to capital gains tax.


GICs are a viable investment for those seeking stability and assured returns. They offer investment security and fixed returns. If stability is vital for your investments, consider a GIC. However, compare different GICs and their features before investing to align with your financial objectives and risk tolerance.