Guaranteed investment certificates and term deposits: know your rights

Guaranteed Investment Certificates (GICs) and term deposits are secured investments. This means that you get back the amount you invest at the end of your term. The key difference between a GIC and a term deposit is the length of the term. Term deposits generally have shorter terms than GICs.

Your right to information before you buy a guaranteed investment certificate or term deposit

Federally regulated financial institutions must give you key details before selling you a GIC or a term deposit. Specific requirements depend on the type of financial institution you’re dealing with.

They must disclose the required information to you in a manner, and using language, that is clear, simple, and not misleading.

At or before entering into an agreement with you, they must disclose information to you, such as:

When you enter into an agreement by telephone

Before you enter into an agreement for this type of product by telephone, they must provide you with the above information verbally. They must also provide the information in writing without delay after selling you the product.

When you enter into an agreement electronically or by mail

Before you enter into an agreement for this type of product electronically or by mail, they must provide:

Your right to information if the terms and conditions change

Before changing any terms and conditions of the product you bought, they must inform you in writing about:

Your right to information about the current value of a product

If you want to know your investment’s current value, they must disclose certain information to you without delay. This includes the principal (the amount you invested) and any interest earned on the day you made the request.

Your right to information about cashing in the product before its end date

Before cashing in this type of product before its end date, they must disclose to you:

Your right to cancel an automatic renewal

A federally regulated financial institution may automatically reinvest your funds at the original investment’s end date. You can cancel this new investment within 10 business days of the start of the new term. If you’re in this situation, check the terms and conditions of your original agreement. You can also contact them for details on how to cancel the product.

Your right to information before renewal or rollover

Banks must disclose certain information about any renewal or rollover of a product or service they may provide to you.

If the product or service is for a term of more than 30 days, they’ll disclose the information:

For a product or service with a term of 30 days or less, they’ll disclose the information:

The information they must disclose to you includes:

Learn more about other types of investment and the basics of investing.

When these rights apply to you

These rights apply when you’re dealing with a federally regulated financial institution like a bank or federal credit union.

Find out if your financial institution is federally regulated.

Learn more about how your banking rights are protected.

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