Guaranteed Interest Accounts

Guaranteed Interest Accounts

A GIC is an interest-bearing deposit tool, usually with a term of one to five years. Interest on a GIC may be paid periodically (monthly, quarterly, semi-annually, annually), or may compounded and become payable on maturity.  It should be noted, however, that it is taxable every year regardless of whether the interest is actually received. Such products are called term deposits.

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