In Canadian deposit terminology, the term Cashable GICs or Guaranteed Investment Certificates refers to a fixed term investment like a certificate of deposit. A specific feature of Cashable GICs is that deposited funds can be withdrawn after an initial period without incurring a penalty.
For example, some Cashable GICs might require that funds be placed on deposit with a Canadian financial institution for one year, with funds available for withdrawal without penalty after an initial period of thirty days within which investors cannot withdraw funds. Cashable GICs tend to be quite safe investments that are insured in Canada by the Canadian Deposit Insurance Corporation or CDIC. Such insurance is subject to certain limitations and requires that funds be deposited with a CDIC member financial institution.Investors might choose Cashable GICs if they require liquidity for their funds or think that interest rates might soon rise. Cashable GICs generally offer a lower rate of return than Non-Redeemable GICs because they allow the investor to withdraw funds prior to the GICs maturity date.