Daily interest accounts and Guaranteed Investment Certificates (GICs) are 2 types of guaranteed deposits. Compare the characteristics of both types of investments in the table below.
Daily interest account
 | Guaranteed Investment Certificate (GIC)
 |
Liquid investment with an interest rate that remains consistently higher than the interest rate on a chequing account. The interest rate varies on a daily basis with variations in the market. | Offers a fixed interest rate and a set term. GICs are usually offered for 3, 6, or 9 month terms, as well as for 1 to 20 year terms. |
| Money can be withdrawn at any time. | When your GIC matures, you have the choice of either cashing it in (if it is non-registered) or reinvesting it at no charge. |
| A daily interest account can be either registered or non-registered. | GICs can be part of a registered plan like a retirement savings plan (RRSP) or a registered retirement savings fund (RRSF), but can also be non-registered. |
| Advantageous interest rates for investments in this type of account. | The interest rate varies incrementally depending on the amount invested and is usually higher if you invest for a longer term. |
Advantages |
| Can serve as an emergency fund since the capital can be withdrawn at any time. | Adds stability and security to any investment portfolio. You know from day one what your return on investment will be. |
| There are no management fees. | Since a wide variety of terms is available, you can stagger your GICs over a number of years to benefit from any rise in interest rates. |
| | Your deposits are covered for up to $100,000 by Assuris (formerly the Canadian Life and Health Insurance Compensation Corporation) when you purchase them through an insurance company. |