Non Registered personal investment | GIC

Guaranteed Investment Certificates (GIC) provide a secure option when it comes to your savings. Your principal and interest rate are guaranteed, so you know that your money will be there when you need it.

Choice, flexibility and security with non-registered GICs

Unlike registered plans, such as a Tax-Free Savings Account (TFSA) or a Retirement Savings Plan (RSP), there are no limits as to how much you can hold in a non-registered GIC. For those that have already contributed the maximum amount to a registered account, but who still want the security and guaranteed growth of a GIC, non-registered GICs are an additional option to consider.

Oaken offers some of Canada’s highest GIC interest rates

At Oaken, we’re committed to providing you with some of the highest GIC interest rates available in Canada. We are constantly comparing our GIC rates with those offered by our competitors, and it’s a point of pride for us to consistently rank at, or very near, the top of this list.

See for yourself just how well our rates stack up. Click to view a full list of our GIC rates compared to recently posted rates by many of our competitors.

You also need to know that all Oaken GICs are issued by either Home Bank or Home Trust Company. Both entities are separate members of the Canada Deposit Insurance Corporation. This ensures that all Oaken GICs are eligible for CDIC insurance coverage, up to all applicable limits. Click for more information on the CDIC deposit insurance program.

At Oaken, we offer several different types of GICs, so it’s easy to find one that’s just right for you. Here’s what you can expect with an Oaken GIC:

  • Many options to choose from: Our terms range from 30 days to 5 years and are available as cashable and non-cashable GICs
  • Flexible payment schedules: Choose the interest payment schedule that suits your needs best, whether that’s monthly, semi-annually, annually or at maturity
  • Security: Our GICs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits, so your savings are protected and your money will be there when you need it
  • Select from two issuers for each deposit: Home Bank and Home Trust Company, both of which are separate members of CDIC
  • Great rates: Our GIC rates are among the highest available
  • Deposit a little or a lot: The minimum deposit is $1,000

Is a GIC right for you?

GICs are one of the better ways to protect your principal while still earning a guaranteed rate of return. During times of market volatility and other economic uncertainty, GICs provide a safe place to invest your money. And because GICs offer a range of benefits and options, just about anyone can consider them as part of their savings and investment plan.

Predictable returns

First and foremost, GICs offer guaranteed and predictable returns for the duration of the term. You can rest easy knowing that you will receive your original principal, plus the contracted interest rate, when the GIC matures.

Of course, this security comes at a bit of a price, and in the case of GICs, this price is a lower rate of return than you might potentially receive by investing in equity stocks or a mutual fund. However, keep in mind that with equities there is no CDIC coverage, so it’s possible that you could lose a portion of your savings. GICs are about protecting your wealth, and are an excellent way to safeguard your savings from fluctuating market cycles.

Secure and stable growth

For those saving for a long term goal such as retirement, the conventional approach is to hold a portfolio that combines equities together with fixed income assets. The ratio of equity to fixed income should reflect your overall savings objective, together with other factors such as your age and planned retirement date.

For instance, younger savers who still have considerable time to work before retiring can be a little more aggressive. However, as investors age, many will start to shift their assets to fixed income, including GICs to protect their gains and preserve their accumulated wealth.

Cashable and flexible

Oaken GICs are available in a wide range of terms, so you can select a timeframe that specifically matches your needs. For short-term investing, you can choose a GIC that matures in as little as 30 days, and for the ultimate in flexibility you can even select a 1-year cashable GIC. This option allows you to redeem your GIC anytime after the initial 30 or 90 days, right up until the GIC matures after 1 year. For higher GIC returns, you can opt for one of Oaken’s long-term GICs, which offer maturity dates from 1 – 5 years.

GIC ladders

By allocating your savings across GICs with different maturity dates, you can take advantage of the higher rates offered by long-term GICs, while also ensuring you can still access some of your savings in a shorter time period. Known as a GIC ladder, this approach is also an effective way to minimize the impact of interest rate changes on your savings. For more information, see the previously published Oaken Blog article that discusses how to set up a GIC ladder.

Here are some questions you can ask yourself if you’re still not sure whether GICs are the right fit for your needs:

What are you trying to do?How we can help
I’m saving for a specific short-term goalOur short-term GICs range from 30-365 days. Choose a cashable GIC for extra flexibility.
I’m saving for a long-term goal, like retirementOur long-term GICs range from 1-5 years, and offer some of the best rates available.
I’m just saving – not sure what for yetOur cashable GIC options let you access your money when you need it – whenever that might be! – from as early as 30 days.
I’ve maximized my RRSP and/or TFSA contribution room, and need somewhere to put my extra savingsDeposits up to $100,000 are covered by the Canada Deposit Insurance Corporation (CDIC), so your extra savings will always be protected.
I have money in other higher-risk investmentsThe security of our non-registered GICs provide a great complement to any investment portfolio.
I’m retired and want to have control over my savingsOur GICs come in a variety of terms and interest payment frequencies, putting you in control of how much you want to come due and when, keeping your cash flowing the way you need. Our Retirement Income Fund (RIF) is a perfect way to manage your retirement savings.

For more information on GICs, be sure to read our Oaken Blog feature “GIC basics for the Canadian investor”. The Oaken Blog also provides further details on common ways that GICs can be used as part of your overall investing and savings strategy.

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