A Guaranteed Investment Certificate is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks. Because of its guaranteed rate, the return is generally less than other investments such as mutual funds. A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, and/or other securities. ...

GICs can be Registered or Non Registered, and come in many forms, from conventional term deposits to market investments. GIC's regularly have lifespans of 1, 2, 3, 4, or 5 year terms. At maturity they can be cashed as taxable income or renewed for another term. Usually, regular term deposits for financial institutions carry an interest rate from 1-5% pending on the various factors, such as the length of the term and specified interest rates from the Bank of Canada.

However, other GICs such as Market Growth GICs or Market Stock-Indexed GICs have their interest rates determined by the rate of growth of a specific stock market (such as the TSX or S&P 500). For example; if the TSX has a market growth increase of 30% in 3 years, beginning at the same point in time the GIC was issued, the GIC will return with an interest of 30%. However, unlike other GICs there is always a possibility that the market could perform poorly, having even no growth at all, in which the interest rate could return at 0%. Just like regular GICs, Market Growth GICs are risk-free; your capital is guaranteed to remain intact, even if the stock market shrinks. In politics, a capital (also called capital city or political capital — although the latter phrase has an alternative meaning based on an alternative meaning of capital) is the principal city or town associated with its government. ...