FAQs: GICs

Frequently asked questions about GICs

• What is a GIC?

  A guaranteed investment certificate (GIC) is a safe and secure investment which guarantees your initial investment as well as provides a fixed rate of return.

  When you get a GIC, you are agreeing to invest with a financial institution for a set number of months or years (the term). In exchange, your money will earn interest. The longer the term, the more interest you earn. At the end of the term, you get the entire amount you deposited plus the interest. For this reason, GICs are one of the safest ways to invest.

• Are Bridgewater Bank GICs eligible for CDIC deposit insurance?

  Deposits and certain investments up to $100,000 are eligible for deposit insurance by the CDIC. The maximum basic protection for eligible deposits is outlined in the brochure “Protecting Your Deposits” located on the CDIC website.

  For more information about coverage, please contact the CDIC at 1.800.461.CDIC (2342) or visit the CDIC website.

• What does non-redeemable mean?

  A non-redeemable GIC rate means it cannot be cashed in early. The longer you keep your money invested, the higher the rate of interest you generally earn. Bridgewater Bank’s short-term and long-term GICs are non-redeemable prior to maturity.

  If you’re looking for higher interest rates and you don’t need ready access to your cash, then non-redeemable deposits are a smart choice.

• Is there a minimum dollar amount required for GIC purchases?

  A minimum investment of $5,000 is required to invest in Bridgewater Bank GICs, and there are no fees which means you keep all your hard-earned money.

• What investment products do you offer?

  Bridgewater Bank offers short-term (less than one year) and long-term (one to five year) non-registered GICs.

• How can I purchase a Bridgewater Bank GIC?

  Bridgewater Bank works with a select network of expert deposit brokers and financial advisors – you can purchase a Bridgewater Bank GIC through them. We are a member of the Registered Deposit Brokers Association (RDBA), and you can find a list of deposit brokers on the RDBA website. To open a GIC with us, contact a broker from the RDBA or ask your deposit broker/financial advisor today.

• What happens to my GIC at maturity?

  All non-registered funds are remitted via post-dated cheque prior to maturity and are sent to your deposit broker. The cheques may then be cashed or re-deposited with Bridgewater Bank.