Investment Rates

A GIC is an investment  that offers a guaranteed return on your deposit.* Canadian banks and credit unions offer Guaranteed Investment Certificates because of their benefits:

• Investment safety: They offer a guaranteed return with a fixed interest rate.
• Higher interest: GICs earn you higher interest than a regular savings account.
• Secured principal investment: You can enjoy a secured principal investment and interest. 

*Visit CDIC for coverage details

The initial deposit must be $1,000 or more. 

A non-registered investment is not held inside a government-registered plan, so interest is taxable.

A registered investment is held inside a plan such as a TFSA, RRSP, RESP, or RRIF, where the tax treatment depends on the type of plan.

Registered plans may offer benefits like

• tax-free growth,
• tax-deferred growth, or
• education and retirement planning advantages.

However, they can also have contribution limits, withdrawal rules, or other requirements members should understand before investing.

A redeemable investment gives you more flexibility because you may be able to withdraw or transfer the funds before the maturity date, subject to the product’s terms.

A non-redeemable investment is designed to stay invested until the end of the term. In exchange for locking in the funds, non-redeemable investments may offer a higher rate than redeemable options.

Generally, no. A non-redeemable investment is intended to remain invested until maturity, so you should only invest funds you don't expect to need during the term.

If you may need access to the money sooner, you should consider a redeemable option or speak with an advisor before opening the investment.

An Easy Start GIC is a 1-year non-redeemable investment option. It 's helpful if you want to start saving money for the $1,000 minimum investment needed for a regular GIC.

• Pre-authorized transfers are required and may be set up at any frequency and for any amount
  
• Additional deposits are permitted in any amount at any time during the investment length

A Convertible GIC is a term investment that allows you to convert to a higher rate, if there's a rate increase, once over the term of your investment.

Your initial investment is split equally into 1-year, 2-year, 3-year, 4-year, and 5-year investments. You’ll be able to access your shorter-term investments should you need the money while your longer-term investments continue to earn interest. It combines the benefit of access to cash without penalty and getting the most interest on your investment.

A Tax-Free Savings Account (TFSA) is a registered savings plan that lets you earn investment income tax-free, within your available contribution room. It requires a $1,000 minimum deposit.

To help save for the $1,000 minimum deposit, Innovation offers a TFSA Savings Account. You can deposit any amount in the account without having to pay tax on the income you earn. You can also easily make withdrawals from it. Contribution limits still apply for a TFSA Savings Account.

By December 31 of the year you turn 71, you must close your Registered Retirement Savings Plan (RRSP). One of the options you have is to transfer your RRSP funds into a Registered Retirement Income Fund (RRIF). Instead of making contributions, you receive retirement income from your RRIF. You must take at least the required minimum withdrawal each year.