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keep up with your gics

What if your gic bank goes bankrupt?

​If your GIC bank goes out of business, your money will be fine. A government agency called the Canada Deposit Insurance Corporation (CDIC) or its provincial equivalent automatically insures GICs up to $100,000 as long as their term is 5-years or less.

If you ever need to keep more than $100,000 in GICs, buy GICs from different banks so that all your money is protected - because only one account per institution can be insured.

INTEREST EARNED ON gicS IS TAXABLE, unless you're using registered accounts

Every year you have an obligation to report in your tax return the interest that you have earned on your GICs that year, even if your GIC will pay out all interest only at maturity (it’s called accrued interest)

  • If the interest earned in the account in which you bought the GIC is bigger than $50, the bank will send you a tax slip with the number you need to input into the tax return
  • If it’s less than $50, you will have to estimate the number that you will report in the tax return based on the GIC account statements your bank or broker is providing online or sending to you. Your banker should be able to help you figure out how to estimate accrued interest


When you purchase the GIC, write down when it’s maturing and what your instructions for proceeds were. That way you’ll be prepared in advance for the next step – will you roll it over into another GIC, reinvest in another way, or cash out to use the money?

If your plans for the proceeds have changed since the purchase, advise the bank – it should be open to accommodate you.

When the GIC matures, make sure the amount of money you expect is deposited in your account as per your instructions. 


  • If the GIC was rolled over even if you instructed the bank to cash it out (as sometimes happens with the banks), you have 10 days to sort it out and the bank will usually reverse the new purchase
  • If you bought a non-redeemable GIC and your circumstances changed such that you need to cash it out earlier, ask your banker about alternatives anyway.  Banks are open to renegotiate the terms of non-redeemable GICs if their customers experience 'financial hardship'