In Canadian deposit terminology, the term GICs refers to Guaranteed Investment Certificates. These investment vehicles offer Canadians a safe and effective storage of wealth while paying out an attractive rate of interest.
For example, GICs can be very similar to Certificates of Deposit and are readily available in Canada for term deposits, as well as a variety of other different forms. GICs are generally available for six months, as well as one, two, three, four, five and ten year terms, and they carry an interest rate of from one to nine percent in 2011. Some GICs have their interest rate determined by the growth of a stock market index, such as the TSX or the Toronto Stock Exchange Index. These GICs are known as Market Growth GICs and Market Stock Indexed GICs. The Canadian Deposit Insurance Corporation acts as the guarantor for GICs, thereby making them relatively secure investment vehicles.