Guaranteed Investment Certificates | GIC's | President's Choice Financial®

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Guaranteed Investment Certificates (GIC)

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President's Choice Financial® GICs are a safe way to save your money where it can grow with a competitive rate for the entire length of your term1 − guaranteed!

  • Risk-free investment option
  • Eligible for open dialogregistered and non-registered plans
  • Interest can compound automatically to help you save faster
  • Choose 1, 2, 3, 4 or 5 year terms
  • No set-up fees or service charges
  • Affordable, start with as little as $100
  • Earn a guaranteed rate for the entire term
  • In your registered plan, tax is deferred while you save for the future
  • View your account online, by phone or through mobile banking and all for free

How do I apply for this account?
If you bank with us, sign in to your online banking or call 1-888-723-8881 to apply. For new customers, you can talk to a Personal Banking Representative at a PC Financial® pavilion near you.

Interest RatesOpen Interest Rates DialogClose Interest Rates Dialog
This table lists the interest rate for the RRSP GIC and GIC
GIC/RGIC term Rate (%)2 APY (%)3
1 year
2 year
3 year
4 year
5 year

*Interest is calculated on each day's closing balance based on the simple interest rate and is paid or compounded (depending on the interest option chosen) at the end of each month. Your GIC is non-redeemable and must be held for the entire term. Rates subject to change.

²Simple annual interest rate.
³Annual percentage yield (APY) - the effective interest rate, illustrating the effect of compounding, or earning of interest on interest.

About GICsOpen About GICs DialogClose About GICs Dialog

A Guaranteed Investment Certificate (GIC) is an investment that is made for a fixed period of time at a set interest rate offering the security of guaranteed interest and protection of your principal (up to the Canadian Deposit Insurance Corporation limit of $100,000). The financial institution you invest with agrees to pay the full amount of your initial investment plus interest − which is payable on a regular basis.

About Registered GICsOpen About RGICs DialogClose About RGICs Dialog

President's Choice Financial GICs are RRSP-eligible, which means you can enjoy all the same benefits of a GIC plus they can be held within your Registered Retirement Savings Plan (RRSP). This way, you have a risk-free investment as part of your retirement portfolio and the taxes you would otherwise pay on any interest income on your GIC are deferred until the money is withdrawn from the RRSP.

About GIC LadderingOpen About GIC Laddering DialogClose About GIC Laddering Dialog

GIC laddering is an investment strategy that allows you to spread your money across a mix of shorter and longer term GICs (from 1 to 5 years). Laddering staggers the maturity dates of your GICs to reduce the risk of interest rate changes, while providing you with ongoing access to a portion of your funds on an annual basis. In a rising interest rate environment you can reinvest your maturing GICs at a higher rate, while in a declining interest rate environment the remainder of your GICs are protected. This strategy also provides access to a portion of your GIC funds each year − should you ever need it.

Key benefits:

Flexibility − take advantage of rising interest rates to reinvest.
Reduced risk − offset the impact of declining interest rates.
Liquidity − access a portion your GIC funds each year without penalty. Plus, staggered maturity dates ensure ongoing liquidity to meet your cash flow needs.

An example of GIC laddering at work

  • With an initial investment of $5,000 you can buy five GICs of $1,000 each, with staggered maturity terms ranging from 1 to 5 years.
  • Each year one GIC will mature and you can reinvest the money into a new 5 year GIC:
    • If interest rates increase, you can reinvest at a higher interest rate.
    • If interest rates decrease, your other GICs continue to earn at a higher interest rate.

1st year 2nd year 3rd year 4th year 5th year
Purchase a $1,000 1 year GIC On maturity reinvest in a 5 year GIC
Purchase a $1,000 2 year GIC On maturity reinvest in a 5 year GIC
Purchase a $1,000 3 year GIC On maturity reinvest in a 5 year GIC
Purchase a $1,000 4 year GIC On maturity reinvest in a 5 year GIC
Purchase a $1,000 5 year GIC On maturity reinvest in a 5 year GIC
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