Term Deposits (also known as GICs) guarantee you receive a set, compounded interest rate over a fixed period of time. This investment is secure and can have a length as little as 30 days and as much as 5 years, with interest rates varying based on the length of the term. Terms can be either Redeemable or Non-Redeemable.
Flexible, secure, and best of all, tax-free, TFSAs allow you to grow your investments without paying taxes on the gains. TFSA is flexible, tax-free investing, and any Canadian over the age of 18 can invest. Withdraw or contribute at any time, and any unused contributions can be carried forward to future years. Plus, the amount withdrawn can be put back in your TFSA the following year without reducing your contribution room.
