GICs & Term Deposits
GICs are a good investment choice
if you want to give your money
a chance to grow, safe and secure.
Guaranteed Investment Certificates (GICs) and Term Deposits are a safe way to save money because your initial investment (principal) is protected. And depending on the type of GIC you choose, you may earn a guaranteed rate of return for the term of your investment.
What are the benefits of TD GICs and Term Deposits?
Safety and security
Your original investment and interest payments are guaranteed.
Terms range from 30 days to five years.
Eligible for non-registered and registered investment plans
GICs are available in non-registered and registered accounts (RSP, RESP, RIF and TFSA). Term Deposits are available in non-registered and registered accounts (TFSA).
TD Canada Trust helps you find the right GIC
for every savings goal
At TD Canada Trust, with a wide range of GICs and Term Deposits, you'll find a secure and effective way to reach your savings and investing goals.
Whether you're purchasing your first home, buying a new car, building toward a sound retirement, preserving your capital during retirement - our financial advisors can help you save for the future while you continue to enjoy life today.
What types of GICs are available?
1 Foreign Currency Term Deposits are not offered within an RSP; are not an insured deposit as defined by CDIC and are fully guaranteed by TD Bank Financial Group. Foreign Currency Term Deposits are subject to foreign exchange risk as the underlying currency may appreciate or depreciate during the investment term.
* Laddering strategies can be ideal for shorter time horizons too. The key is to spread out your investments and maximize your return over your preferred time horizon.
The benefits of laddering GIC maturities
Developing a laddered maturities plan can be an easy way to help you maximize GIC returns while maintaining a secure portfolio. This proven method of investing (also known as a laddering strategy) can help you reduce the risk of interest rate fluctuations and increase your portfolio's overall return.
Laddering maturities can be achieved in two steps:
As a result, 20% (1/5th) of your portfolio will mature each year. This can be cashed, or reinvested for five years at the then prevailing rate. This strategy locks in the portfolio for higher long-term rates, yet also provides liquidity.
Strategies for maximizing return while minimizing risk
If your goal is to reduce interest rate risk, you can begin by spreading the maturity dates so that one or more certificates (and approximately 20% of your GIC portfolio) comes up for renewal each year for the next five years.
If you want to increase the rate of return, every time a certificate comes up for renewal, reinvest it as a 5-year GIC. Work toward a portfolio of laddered 5-year GICs with some renewing each year, so that you receive the higher long-term rates.
Have a few questions?
We've provided answers to some of the most common questions people have about GICs and Term Deposits.