In Canadian deposit terminology, the term GIC Rates refers to the interest rate on Guaranteed Investment Certificates � a financial instrument sold by Canadian banks and financial institutions. GIC Rates are often higher than the rate on Canadian Treasury Bills.
For example, GIC Rates are a guaranteed rate of return over a fixed period of time. GICs are generally issued by Canadian banks and trust companies, and GIC Rates can vary according to the type of GIC. The rates on some GICs can grow to as much as 30 percent when the valuation of the GIC is determined by the value of a basket of stocks such as Market Growth GICs and Stock Indexed GICs. On the other hand, these GIC Rates could drop dramatically in a bearish stock market environment. The guarantor for GICs is the Canada Deposit Insurance Corporation.