Non Redeemable GIC
In Canadian deposit terminology, the term Non-Redeemable GICs or Guaranteed Investment Certificates refers to a fixed term investment like a certificate of deposit. A specific characteristic of Non-Redeemable GICs is that deposited funds cannot usually be withdrawn before the maturity date.
For example, some Non-Redeemable GICs might require that funds be placed on deposit with a Canadian financial institution for one year, with funds only available for withdrawal after the GIC matures. Non-Redeemable GICs tend to be quite safe investments that are insured in Canada by the Canadian Deposit Insurance Corporation or CDIC. Such insurance is subject to certain limitations and requires that funds be deposited with a CDIC member financial institution. Investors might choose Non-Redeemable GICs if they do not require liquidity for their funds and think that interest rates might soon fall. Non-Redeemable GICs generally offer a higher rate of return than Cashable GICs because they lock the investors funds in for the GICs full term.