Frequently Asked Questions
A GIC is an investment product that can be held in a variety of investment plans (i.e. non-registered savings plan, RRSP, RESP, etc.).
A TFSA is an investment account that can hold a variety of investments, and the investments that are held within an individual plan are sheltered from being taxed. When a GIC is held within a TFSA, the interest will be taxed sheltered.
There are many benefits of a GIC, some include:
- Flexibilityin a range or terms and interest rate options
- 100% guaranteed return
- Safety and protection(Canadian Deposit Insurance Corporation eligible)
- Eligibility for your RRSP, RRIF, RESP and TFSA
A guaranteed investment certificate (GIC) is a secure, low-risk investment that guarantees 100% of your original principal while earning annual interest at a fixed or variable rate based on a specific formula.
GIC stands for a Guaranteed Investment Certificate.
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Registered trademark of The Bank of Nova Scotia.
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Interest is accrued daily on your GIC from the issue date up to, but not including, the maturity date. Also, interest will be paid/compounded for the leap day in a leap year. Where an actual interest rate is disclosed, it is an annual interest rate if held to maturity.
The Bank of Nova Scotia, Scotia Mortgage Corporation, Montreal Trust Company, and National Trust Company each issue these Special Rate GICs. We reserve the right to change, extend or cancel these offers at any time without prior notice. A $500 minimum investment is required. A maximum investment of $5,000,000 per customer.
Special Rate GICs: GIC special rates apply only to non-redeemable GICs with the associated terms shown above and are not applicable to other GICs. This is the annual interest rate if held to maturity. These Special Rate GICs are available within registered, non-registered and TFSA portfolios. Interest is accrued daily on your GIC from the issue date up to, but not including, the maturity date. Also, interest will be paid / compounded for the leap day in a leap year. For Scotiabank GICs that pay interest during their term (monthly, semi-annually or annually) the last interest payment is paid at maturity. If the maturity date doesnot fall on a business day then the term of the GIC will be extended to the next business day and interest will be paid to that day. These Special Rate GIC offers are not to be used in conjunction with any other rate bonus or discretionary offers.
Market Linked GICs
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"Interim Interest Rate” means the regular non-redeemable GIC posted rate per annum with the same term as your Scotiabank Market Linked GIC as set out in your Investment Directions.
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"Annual Guaranteed Minimum Interest Rate” is an annualized return of the Minimum Guaranteed Return (defined below), expressed as a percentage rate. The Annual Guaranteed Minimum Interest Rate is specified in your Investment Directions.
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“Minimum Guaranteed Return” means the minimum return, expressed as a percentage rate, you will be guaranteed to earn on your Scotiabank Market Linked GIC. It is not an annual rate but a minimum return over the term of your Scotiabank Market Linked GIC. The Minimum Guaranteed Return is calculated and compounded annually at the Annual Guaranteed Minimum Interest Rate.
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“Maximum Full Term Return” means the maximum return, expressed as a percentage rate, you may earn on your Scotiabank Market Linked GIC. It is not an annual rate but a maximum return over the term of your Scotiabank Market Linked GIC. The Maximum Full Term Return is indicated in your Investment Directions.
