Can You Withdraw From a Locked-In GIC?

In most cases, you cannot withdraw from a locked-in GIC before it matures.

A locked-in (or non-redeemable) GIC is designed so that your money stays put for the full term in exchange for a guaranteed rate of return.

If you think you’ll need access to your money sooner, you’re usually better off with a more flexible option.

KOHO High Interest Savings

If you’re worried about tying up your cash, an account with high interest savings can be a better fit.

With KOHO High Interest Savings, you can:

• Earn a competitive interest rate on your balance

• Keep your money accessible when you need it

• Move cash in and out through the app

What “Locked-In” Really Means

When a GIC is locked-in or non-redeemable:

• You agree to leave your money for the full term (e.g. 1, 2, or 5 years)

• Early withdrawals usually aren’t allowed at all

• Even if a bank does make an exception, it may come with heavy penalties or losing most/all of the interest

Some GICs are also held inside locked-in registered accounts (like certain pension related plans).

In those cases, government rules can make access even more restricted.

When Exceptions Might Apply

Financial institutions can sometimes allow early redemption in very specific situations, for example:

• Serious financial hardship

• Death of the account holder

• A court order or other legal requirement

These are not guaranteed, and every bank has its own policy. If you’re in a special situation, you’ll need to contact your provider directly and ask what’s possible.

How to Decide Between a Locked-In GIC and Savings

A locked-in GIC might make sense if:

• You’re confident you won’t need the money until the term is over

• You want a guaranteed return and don’t mind the lack of flexibility

A high interest savings account might be better if:

• You want easy access to your money

• Your goal is short-term or might change

• You don’t want to risk being stuck in a product you can’t touch