HISA vs GIC
The two cash-like options in Canada, one fully liquid, the other locked in for a term.
A High Interest Savings Account (HISA) at EQ Bank, Tangerine, Simplii, or a credit union pays a variable rate (around 3% to 4.5% in 2024) and you can move money in and out any time. A Guaranteed Investment Certificate (GIC) locks your money for a fixed term (30 days to 5 years), typically pays slightly more than a HISA, and breaks early at a penalty or not at all (non-redeemable GICs). Both are CDIC-insured up to $100,000 at member institutions. Use a HISA for the emergency fund and short-term cash; ladder GICs (1, 2, 3, 4, 5 year rungs) for money you need at known future dates.
A 60-second lesson that puts this term in context, alongside the others, lives inside the Finlo app.