One of the most secure investment options available in Canada is Guaranteed Investment Certificates (GICs). GICs offer guaranteed returns on your investments over a fixed period of time while protecting the initial investment. GICs are insured by the CDIC (Canadian Deposit Insurance Corporation) for up to $100,000 amount, which means that in the event that your financial institution fails, your investments and the returns on them will be protected. You can start investing in BMO’s GICs with as little as $1000 and for terms as short as 1 day. Read below to find out more about the GIC options offered by BMO.

BMO offers several different types of GICs, and the GIC rates are dependent on the type of GIC you choose to invest in. The GIC options offered by BMO can be widely classified into non-cashable GICs, cashable GICs, market-linked GICs and U.S. Dollar GICs. Listed below are the GICs that are a part of these categories.

Non-Cashable GICs

Non-cashable GICs cannot be redeemed till the maturity date. This means that your initial investment in these GICs is locked away for the term of the GIC, and you do not have access to those funds. These GICs typically have higher interest rates than cashable GICs, and the exact return on these GICs can be calculated even before investing. Non-cashable GICs are ideal for investors who have other sources of liquid funds for emergencies and can afford to lock the GIC investments for some time. Many Canadians choose to invest in non-cashable GICs through their TFSA (Tax-Free Savings Account) and RRSP (Registered Retirement Savings Plan) accounts. Listed below are the non-cashable GIC options offered by BMO.

1. BMO Guaranteed Investment Certificate (GIC): This GIC is eligible for non-registered investments and registered plans, including RSP, RESP, RIF, TFSA and RDSP.

   • Term Lengths: 6 months to 10 years for RSP savings accounts and from 1 to 10 years for non-registered accounts, RIF accounts and TFSA accounts.

   • Interest Payments: For non-registered investments, the interest can be paid monthly, semi-annually, annually, or compounded annually and paid at maturity. For RSP / TFSA / RESP investments, the interest is paid to a savings account annually or compounded annually and paid at maturity. For RIF investments, the interest is compounded annually and paid at maturity.

   • Minimum Investment: The minimum investment required is $1,000. For the monthly interest payment option, a minimum investment of $5,000 is required. The minimum investment required for RESP plans is $500.

2. BMO Short-Term Investment Certificate: The Short-Term Investment Certificate is available for non-registered investments and registered plans, including RESP, TFSA and RDSP. The interest rate depends on the term length selected.

   • Term Lengths: 30 days to 359 days

   • Interest Payments: Interest is paid at maturity.

   • Minimum Investment: The minimum investment required for non-registered investments is $5,000. The minimum investment required for RESP / TFSA plans is $1,000.

3. BMO RateRiser Max GIC: This GIC is available for non-registered investments and registered plans, including RSP, RIF, RESP, TFSA and RDSP. The interest rate for this type of GIC increases with every passing year. For example, as of October 2023, the first-year interest rate offered is 5.0%, and the interest rate increases to 5.1% in the second year and to 5.35% in the third year.

   • Term Lengths: 3 years or 5 years days

   • Interest Payments: For non-registered investments, the interest is paid annually or compounded annually and paid at maturity. For RSP and RIF investments, interest is compounded annually and paid at maturity. For TFSA and RESP investments, interest is paid to a savings account annually or compounded annually and paid at maturity.

   • Minimum Investment: $1,000

4. BMO RateOptimizer Max GIC: This GIC is available for non-registered investments and RSP plans. On every anniversary, the term of this GIC is extended by a year (unless an automatic extension is terminated), and 20% of the investment is re-invested at the ongoing BMO RateOptimizer Plus 5-year renewal rate. This rate lets you take advantage of a rising rate environment by getting a higher interest rate for the reinvested amount. Meanwhile, in a falling interest rate environment, you can lock in your current blended interest rate for the remaining term.

   • Term Lengths: Initially 5 years, with an annual extension of one year unless the automatic extension is terminated.

   • Interest Payments: For non-registered investments, the interest is paid monthly, annually or compounded annually and paid at maturity. For RSP investments, interest is compounded annually and paid at maturity.

   • Minimum Investment: $1,000

Cashable GICs

Unlike non-cashable GICs, Cashable GICs allow you to cash your investments before the maturity date. These GICs usually have lower interest rates than non-cashable GICs, and there are some conditions for early withdrawals. Listed below are the cashable GIC options offered by BMO.

1. BMO Cashable RateRiser GIC: This GIC is available for non-registered investments and registered plans, including RSP, RESP, TFSA and RDSP. This GIC works in a similar way to the BMO RateRiser Max GIC, with the interest rate increasing with every passing year. For example, as of October 2023, the first-year interest rate offered is 3.0%, and the interest rate increases to 5% in the second year and to 5.50% in the third year.

   • Term Lengths: 3 years

   • Redemption: Cashable in full at any time (no partial redemption) maturity.

   • Interest Payments: For non-registered investments, the interest is paid annually or compounded annually and paid at maturity. For RSP investments, interest is compounded annually and paid at maturity. For TFSA and RESP investments, interest is paid to a savings account annually or compounded annually and paid at maturity.

   • Minimum Investment: $1,000

2. BMO RateRiser Plus GIC: This GIC is available for non-registered investments and registered plans, including RSP, RIF, RESP, TFSA and RDSP. This GIC works in a similar way to the BMO RateRiser Max GIC, with the interest rate increasing with every passing year. For example, as of October 2023, the first-year interest rate offered for the 2-year GIC is 5.0%, and the interest rate increases to 5.50% in the second year.

   • Term Lengths: 2, 3 or 5 years

   • Redemption: Can be cashed in full on each anniversary.

   • Interest Payments: For non-registered investments, the interest is paid annually or compounded annually and paid at maturity. For RSP investments, interest is compounded annually and paid at maturity. For TFSA and RESP investments, interest is paid to a savings account annually or compounded annually and paid at maturity.

   • Minimum Investment: $1,000

3. BMO Redeemable Short-Term Investment Certificate: The Redeemable Short-Term Investment Certificate is available for non-registered investments and registered plans, including RESP, TFSA and RDSP.

   • Term Lengths: 30 days to 364 days

   • Redemption: Can be cashed in full at any time; however, no interest is paid if the GIC is cashed within the first 30 days.

   • Interest Payments: Interest is paid up to the redemption date or maturity.

   • Minimum Investment: The minimum investment required is $1,000

4. BMO RateOptimizer Plus GIC: This GIC is available for non-registered investments and RSP plans. Similar to the RateOptimizer Max GIC, the term of this GIC is extended by a year (unless an automatic extension is terminated) on every anniversary, and 20% of the investment is re-invested at the ongoing BMO RateOptimizer Plus 5-year renewal rate. The difference is that you can redeem up to 25% of the outstanding balance once each anniversary year.

   • Term Lengths: Initially 5 years, with an annual extension of one year unless the automatic extension is terminated.

   • Redemption: One-time redemption of up to 25% of the outstanding balance during each anniversary year.

   • Interest Payments: For non-registered investments, the interest is paid monthly, annually or compounded annually and paid at maturity. For RSP investments, interest is compounded annually and paid at maturity.

   • Minimum Investment: $1,000

5. BMO Air Miles GIC: This GIC lets you earn one AIR MILES reward each month for every $1000 invested, on top of interest. This GIC is available only for non-registered investments.

   • Term Lengths: 364 days

   • Redemption: Can be cashed partially or in full at any time; however, no interest is paid if the GIC is cashed within the first 30 days. The minimum withdrawal required is $1,000, and you must maintain the minimum investment balance.

   • Interest Payments: Interest is paid up to the redemption date or maturity.

   • Minimum Investment: $5,000

6. BMO Variable Rate GIC: The interest rate of this GIC is linked to BMO’s prime rate and varies with the variation in the rate. Such GICs are also called prime-linked GICs. The benefit of investing in these GICs is that you take advantage of a rising rate environment to earn more interest and cash the GIC when the rates begin to fall. This GIC is available only for non-registered investments.

   • Term Lengths: 364 days

   • Redemption: Can be cashed partially or in full at any time; however, no interest is paid if the GIC is cashed within the first 30 days. The minimum withdrawal required is $1,000, and you must maintain the minimum investment balance.

   • Interest Payments: Interest is paid up to the redemption date or maturity.

   • Minimum Investment: $5,000

7. BMO Term Deposit Receipt: This GIC is offered for non-registered and RSP investments. This GIC offers the flexibility to cash your investment if you need the funds or another investment opportunity arises. It is

   • Term Lengths: 1 day to 5 years for non-registered investments and 1 to 5 years for RSP investments.

   • Redemption: Non-registered investments can be redeemed fully or partially at any time at pre-determined early redemption rates. No interest is paid on GICs redeemed in the first 30 days. RSP investments are fully or partially cashable at any time.

   • Interest Payments: Interest for non-registered investments is paid at maturity for terms less than 1 year. For terms of 1 year or longer, the interest is paid semi-annually and at maturity. For RSP investments, the interest is compounded annually and paid at maturity.

   • Minimum Investment: $1,000 for 1 to 5 years, $10,001 for 30 to 364 days, and $100,001 for 1 to 29 days.

U.S. Dollar GICs

U.S. Dollar GICs are denominated in U.S. Dollars instead of Canadian Dollars. USD GICs are the most popular type of foreign currency GIC in Canada, with most major banks offering U.S. Dollar GIC options. BMO offers USD GIC options for non-registered investments. The two BMO USD GIC options are explained below.

1. BMO U.S. Dollar Term Deposit Receipt: The terms available for these GICs range from 30 days to 5 years. The minimum investment requirement is US $1,000. Investments of over US $100,000 are eligible for full or partial early redemption at a predetermined early redemption rate. For terms less than 1 year, the interest is paid at maturity. Meanwhile, for terms of 1 year or more, the interest is paid semi-annually and at maturity.

2. BMO U.S. Dollar Redeemable Short-Term Investment: These GICs are cashable at any time. The interest is paid at maturity or at redemption. However, if the GIC is redeemed within 30 days of its issuance, no interest is payable. The minimum investment required is $5,000.

Market-Linked GICs

The returns on market-linked GICs are dependent upon the performance of the stock or bond indexes linked with them. The original investment in these GICs is protected, and a minimum return is guaranteed. These GICs offer the potential to earn higher returns if the underlying index performs well. All BMO market-linked GICs are eligible for non-registered and registered investments, including RSP, RESP, RIF, and TFSA.

Market-linked GICs are available in a monthly series (with one issue date every month), and your investment is held as an interim investment in a BMO Short-Term Investment Certificate (STIC) till the date of issue. The principal and interest of the STIC mature into the market-linked GIC of your choice when it is issued. The BMO market-linked GIC options with the linked market indexes are listed in the table below.

Other

BMO also offers an International Student GIC Program similar to other big banks. International students can open a student GIC with the bank to meet Canada’s Student Direct Stream (SDS) study permit requirements. This GIC provides the students access to the funds when they arrive in Canada.

To start investing in BMO GICs, you must be a BMO customer and open an investment account with them. You can then log in to BMO’s online banking portal and purchase a GIC. You must also meet some general requirements before investing in GICs, which include:

• You must be a Canadian resident with a Canadian address
• You must have a Social Insurance Number (SIN)
• You must be of mature age in your province of residence

For more information on BMO GICs, you can contact the bank at 1-877-225-5266.