GIC vs GIA
What Is a GIC?
A Guaranteed Investment Certificate (GIC) is a low-risk investment where you deposit money for a fixed term—usually from 30 days up to 5 years—and earn a guaranteed rate of return.
GICs are offered by banks, credit unions, and financial institutions, making them a reliable tool for long-term savings.
Benefits of GIAs
- Guaranteed return with no market risk
- Held within insurance contracts, offering added estate-planning advantages
- Potential creditor protection in certain circumstances
- Bypass probate when a named beneficiary is added
- Flexible terms and deposit options
- Ideal for individuals wanting stability plus insurance-based benefits
Key Differences: GIC vs. GIA
| Feature | GIC | GIA |
|---|---|---|
| Who Offers It | Banks & credit unions | Insurance companies |
| Where It’s Held | Investment account | Insurance contract |
| Estate Benefits | None | Can bypass probate, may offer creditor protection |
| Interest Rates | Fixed or variable | Typically fixed |
| Redeemability | Depends on product type | Depends on contract |
| Ideal For | Straightforward, low-risk savings | People seeking stability + estate planning features |
Which One Is Right for You?
Both GICs and GIAs offer guaranteed growth, but the best choice depends on your goals:
- Choose a GIC if you want a simple, secure investment with predictable returns.
- Choose a GIA if you want guaranteed growth plus estate planning advantages or the ability to name a beneficiary directly.
At Ted Daigle Insurance & Financial Services, we help clients choose the right investment based on their financial goals, tax considerations, and long-term plans.
Get Trusted Guidance for Your Savings
Whether you're building your savings, planning for retirement, or looking for tax-efficient, low-risk investment options, we can help. Contact us today to learn how GICs or GIAs can fit into your financial strategy.
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