• GIC has the highest safety level than any other investment products.
  The risk of losing your principal in GIC is virtually nil. Even the bank you bought GIC from goes bankrupt, your investment is still under protection by CDIC (Canada Deposit Insurance Corporation) up tp $60,000 each account.
  
  
• GIC cannot make you rich. Considering the factor of inflation, the low interest rate on your GIC can barely beat the inflation. It will only make the borrower, banks etc. become more profitable.
  
  
• GIC has low liquidity. Most of the time, you will lose the interest if you want to withdraw your money early if you purchase a non-redeemable GIC. The interest rate on redeemable GIC, which allows you to withdraw money before maturity, is much lower.
  
  
• GIC can be used as collateral for a loan, can be sold to another person, or can be automatically renewed at maturity.

Special GIC products:

Index-linked GIC: It guarantee the return of principal and indexed to a particular domestic or foreign indexes.
Money market GIC
Convertible GIC
Laddered GIC
Instalment GIC: This type of GIC needs periodical contribution, such as weekly, bi-weekly, or monthly.
Escalating-rate GIC: The interest rate of this GIC will increase over the term of GIC.

GIC should have a place in your portfolio
Many investors scoff at the idea of investing in GIC because of its low rate of investment. It is true investment in GIC can bearly beat the rate of inflation. But GIC should always have a place in your portfolio from the perspective of portfolio diversification. While facing a market down turn and your investment in stocks and mutual funds earning negative return, you'll be grateful to learn that your money in the GIC is still earning positive return for you.

The percentage of your entire RRSP invested in GIC should approximate your age.
Age = GIC percentage