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GUARANTEED INVESTMENT CERTIFICATES (GICs) OVERVIEW
A guaranteed investment certificate is an investment vehicle
that consists of a deposit made for a designated period of time
with a guaranteed interest rate. These investments guarantee at
least the return of principal upon maturity and the investment
earns interest at a set or a variable rate or may be based on
a market-linked formula depending on the type of GIC selected.
RISK: most GICS covered by the CDIC (Canadian
Deposit Insurance Corporation) guaranteed to maximum of $60,000
TAX CONSIDERATIONS: interest income taxable on cash and
accrual basis
This material is for information purposes only and should
not be construed as legal or tax advice. Every effort has been
made to ensure its accuracy, but errors and omissions are possible.
Individual circumstances may vary and specific legal and tax advice
is recommended. Future tax changes and market conditions may affect
this information.
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