Guaranteed Investment Certificates (GICs) offer the opportunity to earn guaranteed returns on your investment. You can invest in GICs for a specific period of time and earn interest on your investment at a fixed or variable rate. GIC investments are protected in the event of the bank’s failure as they are insured up to $100,000 by the Canadian Deposit Insurance Corporation (CDIC). Like other banks and financial institutions, CIBC offers several GIC options with different interest rates and term lengths. You can start investing in CIBC GICs with term lengths starting from 30 days and a minimum investment of $500. CIBC GIC interest rates vary with cashability and term lengths. Read below for more information on different types of GICs offered by CIBC.

CIBC offers a wide range of GIC options, including cashable, redeemable, and non-redeemable GICs. You can even buy GICs linked with CIBC’s prime rate and market-linked GICs. The different kinds of GICs offered by CIBC are explained below.

CIBC Bonus Rate GIC — Non-Registered and Registered

CIBC Bonus Rate GICs offer a promotional interest rate on some GIC terms. Such GICs have some of the best interest rates that CIBC offers. These GICs are non-redeemable; thus, the investors cannot access the invested money till maturity. However, they can calculate the returns they would get on maturity before investing. The minimum investment required is $1,000. For terms of one year or more, the investor can choose from simple interest, calculated and paid monthly, semi-annually, or annually, and compound interest, calculated annually and paid at maturity.

Bonus Rate GICs can be held in non-registered accounts and registered accounts, including Registered Retirement Savings Plans (RRSP), Registered Education Savings Plans (RESP), and Tax-Free Savings Accounts (TFSA). The different kinds of Bonus Rate GICs offered by CIBC are:

• CIBC Bonus Rate GIC — Non-registered (Short Term): Terms of 30 days to 270 days.
• CIBC Bonus Rate GIC — Non-registered (Long Term): Terms of 12 to 60 months.
• CIBC Bonus Rate RRSP GIC: 1-year, 2-year, and 5-year terms.
• CIBC Bonus Rate TFSA GIC: 1-year to 5-year terms.
• CIBC Bonus Rate RRIF GIC: 1-year, 2-year, and 5-year terms.
• CIBC Bonus Rate LIF GIC: 1-year, 2-year, and 5-year terms.

CIBC EasyBuilder GIC — Non-Registered

EasyBuilder is a laddered investment option provided by CIBC wherein the investment is split across 5 GICs, each having a different maturity date from 1 to 5 years. When a GIC matures, it is reinvested for five years. This way, you have one GIC maturing yearly, and you can cash out some money if you need. By investing in EasyBuilder GICs, you can benefit from the high interest rates of non-redeemable GICs but still have some flexibility in cashing out. The minimum investment required is $2,500 ($500 for each term).

CIBC Flexible GIC — Non-Registered and Registered

Flexible GIC is a cashable GIC option offered by CIBC with a term length of one year. Cashable GICs have a lower interest rate than their non-cashable counterparts but offer the flexibility of cashing out at any time. It should be noted that no interest is paid if the GIC is cashed out during the initial waiting period of 29 days. If you cash out after 29 days but before maturity, interest is paid up to the withdrawal date. The GIC can be held within RRSP, TFSA, and non-registered accounts. The minimum investment required is $1,000.

CIBC Market Linked GICs — Non-Registered and Registered

The returns for market-linked GICs are linked to market performance, with the initial investment being protected. These GICs offer an opportunity to earn greater returns than traditional GICs, depending on the market conditions. CIBC offers three investing strategies to choose from —

• Income – Guaranteed minimum returns
• Income and Growth – Fixed returns with chances of higher returns at maturity
• Growth – Principal protection at maturity, but don’t always offer guaranteed returns

The minimum investment amount is $500, and these GICs can be held within RRSP, TFSA, and non-registered accounts.

CIBC Variable Rate GIC

The interest rate for variable rate GICs is linked to CIBC’s prime rate, meaning investors earn more when the prime rate goes up. These GICs are cashable, meaning you can easily cash out when the prime rate falls. It may be beneficial to buy this GIC when the prime rates are going up to maximize the returns. Similar to other cashable GICs, this GIC too has an initial waiting period of 29 days. If you withdraw within this period, you would not earn any interest. The minimum investment is $1,000, and the term length is one year.

CIBC Cashable Escalating Rate GIC — Non-Registered and Registered

The interest rate for Escalating Rate GICs increases each year. For example, the interest rate for the first year may be 2%, increasing to 3% for the second year and 4% for the third year. Additionally, these GICs can be redeemed at any anniversary or within seven days of it. The minimum investment amount is $500; the investor can pick a three-year or five-year term. The rates differ based on the term length. These GICs can be held within RRSP, TFSA, and non-registered accounts.

CIBC Escalating Rate GIC — Non-Registered and Registered

These are similar to the Cashable Escalating Rate GICs except for the cashability aspect. These GICs cannot be cashed out till maturity. Similar to their cashable counterparts, these GICs require a minimum investment of $500, and the term lengths available are three and five years. These GICs may be held within RRIF and LIF accounts in addition to RRSP, TFSA, and non-registered accounts.

CIBC Long-Term GIC — Non-Registered

CIBC Long-Term GICs have term lengths ranging from one year to seven years and have a guaranteed interest rate. These GICs held within non-registered accounts require a minimum investment of $1,000.

CIBC Short-Term GIC — Non-Registered

CIBC Short-Term GICs have term lengths ranging from 30 days to 364 days. For a minimum investment of $1,000, the minimum term length is 60 days. For investments of $5,000 and above, the term length can be as short as 30 days. Short-term GICs typically offer lower interest rates than long-term GICs; however, they are a great option to park your money for a short time while still earning interest.

CIBC Redeemable GIC — Non-Registered

CIBC Redeemable GICs offer the option of cashing out at any time. However, early redemption rates apply if you decide to cash out before maturity. This means you will not receive interest at the original rate and instead receive it at a much lower rate. CIBC allows investing in redeemable GICs with a minimum amount of $1,000 for a minimum term of 60 days or a minimum of $5,000 for a minimum term of 30 days. Term lengths of up to seven years can be selected.

CIBC LIF GIC

CIBC LIF GICs are held within your registered LIF (Life Income Fund) accounts for a term of two months to five years.

CIBC RESP GIC

CIBC RESP GICs can be held within CIBC RESP (Registered Education Savings Plan) accounts. If you want to save for your child’s post-secondary education, you may consider this option. The minimum investment amount is $500, and term lengths vary from one year to five years. Interest is compounded annually and paid at maturity. This GIC is non-redeemable, meaning you can access the funds only at maturity.

CIBC RRIF GIC

If you have an RRIF (Registered Retirement Income Fund) account with CIBC, you can invest in a CIBC RRIF GIC. These GICs have term lengths from two months to five years.

CIBC RRSP GIC — Non-Redeemable and Redeemable

Similar to other registered accounts, you can invest in a GIC with your RRSP (Registered Retirement Savings Plan) account as well. RRSP GICs have term lengths from two months to five years. You can buy a redeemable or non-redeemable RRSP GIC. For redeemable RRSP GICs, early redemption rates apply when you choose to withdraw before maturity.

CIBC TFSA GIC — Non-Redeemable and Redeemable

You can also invest in TFSA GICs if you have a TFSA account with CIBC. The benefit of investing in GICs in a TFSA account is that you don’t have to pay taxes on the interest you earn with these GICs. The term lengths vary between two months and five years, and you can choose between a redeemable and non-redeemable GIC. Early redemption rates apply to redeemable GICs when you choose to withdraw before maturity.

CIBC Save-Up GIC — Non-Registered

With a CIBC Save-Up GIC, you can schedule regular contributions from your everyday bank account to a short-term investment. Term lengths range from 30 to 90 days.

CIBC T-Bill GIC — Non-Registered

T-Bill Rate GICs allow investors to deposit their money with CIBC for 90 to 100 days and earn a fixed interest rate higher than the regular 90-day GIC rate.

You can invest in CIBC GICs in three simple steps:

• Ensure you meet the requirements
  To get started, you have the following:
  • Be a Canadian resident having reached the age of maturity in your province of residence
  • Have a Social Insurance Number (SIN)
  • Have a CIBC personal bank account to fund your investment
  • Register for Online and Mobile Banking
• Log in to CIBC Online Banking and choose a GIC
  When you log in to CIBC Online Banking, you will see the ‘Investing’ option in the header. You can select the option to invest in GICs and choose a GIC to invest in. Make sure you have enough funds in your bank account to fund the investment. If you need advice for choosing the right GIC option for yourself, you can call CIBC or visit their banking center.
• Fill the application form
  The last step is to fill the application form, which takes about five minutes. You can get help from CIBC over the phone or in their banking centers. Once the application is approved, you can track your GIC through CIBC Online Banking.