User:Koogie/GICs for small businesses

Guaranteed Investment Certificates (GICs) are term deposits that offer a guaranteed rate of return over a fixed time period. They are available for sale to most types of small business as well as individuals. In most circumstances they are covered by deposit insurance from the federal Canada Deposit Insurance Corporation (CDIC) or by one of the various provincial deposit insurance programs.

GICs are most commonly issued to small businesses by Canadian banks or trust companies. However, due to regulatory reporting requirements and individual bank or trust company practices not all banks or trust companies accept GIC deposits from small business.

A good indicator of whether a bank or trust company offers GICs to businesses is if they offer bank accounts to them as well. This information is usually easy to find on the bank or trust company website or by directly contacting the institution.

All the same general benefits which apply to GICs for individuals also apply to GICs for small business. Length of terms and insurance coverage are generally the same as advertised for individuals. Be aware however that interest rates may be somewhat lower than that advertised for individuals.

As of January 2015, following is a list of Canadian banks and credit unions that do and do not issue GICs and term deposits to small businesses. Also indicated is the relevant deposit insurance scheme to which they belong. The list is not exhaustive nor is it meant to be a definitive guide. You should always check directly with the institution you are interested in to ascertain their current policy.

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Many of the banks listed also have affiliated divisions which issue GICs. It is possible therefore to increase the available insurance coverage by purchasing GICs through these divisions as well as from the main entity. In addition, many bank owned discount brokerages also offer access to GICs and term deposits (including third party GICs not issued by the affiliated bank).

Many (but not all) registered Deposit Brokers in Canada can also arrange GICs and term deposits for small businesses. Deposit brokers can often offer GICs from smaller and obscure trust companies that may not be as widely known or available to the public (whilst being fully insured by the relevant deposit insurance authority). Registered deposit brokers may also be able to offer better rates for small business GICs than what are generally available directly from the relevant institutions.