Redeemable vs non-redeemable | Rates Explained: GICs

GICs come in two main kinds.

A non-redeemable GIC is locked. You can't take your money out until the term ends (except in rare cases, like hardship, depending on the bank). Because the bank knows it can keep your money, it usually pays a higher rate¹.

A redeemable GIC, also called cashable, lets you take your money out before the term ends¹. That flexibility usually costs you some interest: the rate is lower.

Read the rules before you buy. Some cashable GICs pay no interest if you cash out in the first few months. For example, one credit union's 1-year cashable GIC pays 0% if you take your money out in the first 90 days².

Which one?

Pick non-redeemable for money you're sure you won't need until the end.
Pick redeemable if there's a chance you'll need the money sooner.
Money for emergencies is often better in a savings account.

Today's numbers. The highest 1-year non-redeemable and redeemable GIC rates advertised today, and what each would earn on $10,000 in a year.