H ow does G IC work in C anada?

In Canada, a GIC offers a fixed rate of return over a predetermined time with low risk. A certain amount of money is deposited by investors, and it is subsequently locked in for a specified amount of time. Investors receive their initial deposit plus interest at the end of the term.

Although it is not common, some financial institutions may provide GICs with monthly interest payments.

Can I withdraw money from GIC?

In general, you must pay a penalty if you remove money from a GIC before the end of the predetermined term. However, some GICs may have features that permit early withdrawals with penalties, while others may have flexible terms or clauses that permit partial withdrawals. It's crucial to review your GIC's terms before making any investments.