GIC rates are influenced by the Bank of Canada policy interest rate (also known as the overnight rate) and the business environment that financial institutions participate in. Interest can be paid annually, semi-annually, monthly or at maturity. Generally, interest rates are calculated on a per annum basis.
Before choosing a GIC, compare terms, such as the length of time your money will be invested, if the GIC is redeemable or non- redeemable and rates offered for each option. Ensure that you thoroughly understand how the investment fits into your overall financial plan before you commit to an investment.