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Stocks, Bonds etc. -> Investing Tax Issues -> Term deposits and guaranteed investment certificates

Tax Treatment of Income from Term Deposits and GICs

This information is regarding investments which are held outside of RRSPs or other registered accounts.

Term deposits and guaranteed income certificates (GICs) generate interest income, which is 100% taxable.

This type of investment provides no opportunity for tax savings, and little or no opportunity for investment growth.

Tax Tip: Term deposits and GICs are better held inside a registered account, because 100% of the income is taxable when not in a registered account.

Revised: December 05, 2025

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