Fixed income in page


Yields on GICs tend to move up and down quite slowly – so considering their pace can be beneficial when you’re comparing options. Learn more about the ins and outs of investing with GICs:

investment icon
Remember the $100K CDIC limit.

Always keep the $100K limit in mind when purchasing GICs. Holdings under the $100K limit are protected by CDIC, a Crown corporation that is backed by the Government of Canada. Holdings above the $100K limit are subject to the creditworthiness of the individual borrower (as holders have a senior unsecured claim on company assets). These are two very different risk profiles and should be carefully considered as such.

investment icon
GIC rates tend to move up and down quite slowly.

In comparison to tradable bonds, the yields on GICs move slower in both directions (rate-rising and rate-falling environments). Investors should consider this when they decide to reinvest a maturing GIC or bond proceeds, as GICs might look more or less attractive compared to their alternatives.


investment icon
GIC rates should be higher than equivalent bonds.

GICs can be difficult to sell – RBC Dominion Securities actually has its own secondary market – so it’s wise to expect to return a higher yield than an equivalent tradable bond from the same borrower.