|Registered / TFSA
(Updated July 2023)
One of the most secure investment options available in Canada is Guaranteed Investment Certificates (GICs). By investing in GICs, you can get guaranteed returns over a specified time period. With many banks and financial institutions offering various GIC options, investors have many options to pick from. Investing in GICs is stress-free as GICs are insured by the CDIC (Canadian Deposit Insurance Corporation) for up to $100,000. With TD Bank, you can start investing in GICs for as little as 30 days or with as low as $500 in investment amount. Generally, the TD Bank GIC rates increase with the term length; however, you should also look for special offers that may have better interest rates for shorter term lengths. Listed below are the different types of GICs offered by TD Bank.
TD Bank offers its GIC products under five different categories. Each of the categories has multiple GIC products offered under them. The different categories and GIC products are explained below. It should be noted that GIC products and their interest rates are subject to change; thus, the bank may discontinue some of the products listed below at any time.
Non-cashable GICs can only be cashed out once they have matured. The investment is locked in, and you cannot access the money until maturity. For such investments, you can calculate the exact returns that you will receive when the GICs mature. TD offers both short-term and long-term non-cashable GICs that can be held in non-registered accounts as well as registered accounts such as Registered Retirement Savings Plans (RRSP),Registered Education Savings Plans (RESP), and Tax-Free Savings Accounts (TFSA).
Short-term GICs, also known as term deposits, are GICs whose term is shorter than a year. TD offers short-term GIC options starting from 30 days and ranging up to 270 days. The minimum investment required for non-registered and TFSA GICs is $5,000, whereas that for other registered GICs (RSP, RIF, RESP) is $2,000. Simple interest applies to such investments, and the interest may be paid monthly, semi-annually, annually, or at maturity for non-registered and TFSA accounts, but only annually and at maturity for all other registered accounts.
Long-term GICs are GICs that have a term length of 1 year or more. TD offers long-term GICs for terms of 1 year to 5 years. The minimum investment for non-registered GICs and TFSA GICs is $1,000, and for registered GICs (RSP, RIF, RESP) is $500. The interest for such GICs is compounded annually and paid at maturity.
This GIC is similar to the Long-Term GICs with compound interest, with the difference that interest is not compounded annually. This means that you receive interest only on the principal throughout the GIC term.
As opposed to non-cashable GICs, cashable GICs can be cashed at any time. Cashable GICs usually have a lower interest rate than their non-cashable counterparts. TD’s Cashable GICs are offered in non-registered and registered accounts, with short and long-term options.
TD’s short-term cashable GIC has a term length of 1-29 days and is offered for non-registered, TFSA and RSP accounts. It is not offered in RIFs and RESPs. The interest rate for these GICs is 0.10%, and the minimum investment required is $100,000. The interest is compounded annually and paid at maturity. If you are assessing your investment options but don’t want to miss out on earning interest for even a day, you could invest in a short-term GIC, which you can cash at any time.
As the name suggests, the 1-year cashable GIC has a term of 365 days or one year. The 1-year cashable GIC has an initial waiting period of 30 days, after which you can cash your GIC at any time in part or in full. The interest is calculated up until the date of cashing. This minimum investment for non-registered accounts and TFSAs is $1,000, and that for other registered accounts is $500. The interest for these GICs is paid at maturity.
Unlike the 1-year cashable GIC with an initial waiting period, this GIC can be cashed anytime (although you won’t earn any interest when you cash before 30 days). However, the catch here is that these GICs are subject to tiered pre-encashment rates, which are much lower than the original interest rate. These kinds of GICs are also known as redeemable GICs.
The minimum investment amount for non-registered and TFSA accounts is $1,000, and for RSPs is $500. This product is not available within RIFs and RESPs. Simple interest is paid annually and at maturity, and the interest is accrued only on the original principal. If you are unsure about locking away your investment, consider this type of GIC.
A stepper GIC is one in which the interest rate increases with every passing year. The original term is for one year, and the GIC automatically renews on the anniversary date for four successive terms. You have the option of cashing the GIC at any anniversary.
The minimum investment amount for non-registered and TFSA accounts is $1,000, and for RSPs, RIFs, and RESPs is $500. The interest is compounded annually and paid at maturity or at the time of cashing.
Those enrolled in the TD International Student GIC Program can invest in this GIC. The GIC has a term length of two years, and the minimum investment is $10,000. These GICs are cashable in the form of monthly payments in accordance with a payment schedule.
GICs denominated in U.S. Dollars instead of Canadian dollars are called U.S. Dollar GICs. These are a type of foreign currency GICs. TD offers three kinds of U.S. Dollar GICs that are explained below.
U.S. Dollar term deposits have the same length as short-term GICs. The terms deposits are cashable, but no interest is paid if the GIC is cashed before maturity. The minimum investment required for 30 to 369 days is USD 5,000, and for 1 to 369 days is USD 100,000. There are different interest rates for USD $5,000 to $24,999.999, USD $25,000 to $99,999.99, and USD $100,000+.
These GICs are different from the 1-year cashable GICs. These GICs are offered only within non-registered accounts, and no interest is paid when they are cashed before maturity. The minimum investment for 30 to 369 days is USD 5,000, and that for 1 to 369 days is USD 100,000.
These GICs are available for term lengths of one to five years and offer simple interest on the investment.
Market Growth GICs are a way to invest in the stock market while keeping your initial investment safe. The return on such GICs is variable and depends on the performance of the index linked with the GIC. These GICs have a minimum guaranteed return and a maximum return. The GICs can be held in both registered and non-registered accounts.
There are three kinds of market-linked GICs available with TD.
Returns of this GIC are linked to two indexes with 50% weightage each — S&P/TSX Bank Index and S&P/TSX Capped Utilities Index.
Returns are linked to S&P/TSX Bank Index
Returns are linked to S&P 500 Index.
Special Offers GICs are GICs offering promotional interest rates for specific term lengths. You can often find the best GIC deals under this category. The offers keep changing every few weeks or months; thus, if you find a rate that you like, you should act fast and secure the rate.
To be eligible to invest in a TD Bank GIC, you must have a chequing or savings account with TD Bank and register for EasyWeb Online Banking. You should also ensure that you have sufficient funds to start investing.
Once you have registered for online banking, you can follow the steps below:
GIC investment with TD is simple and straightforward; the online portal takes you through all the steps one by one. If you are unable to find a particular GIC or have any other questions, you can talk to a TD Bank representative over the phone or schedule an appointment with one of the specialists at your nearest branch.