GIC vs Savings Account

When you’re deciding where to park your money, it often comes down to flexibility vs guaranteed rate:

• A savings account keeps your money accessible.

• A GIC (Guaranteed Investment Certificate) usually locks it in for a set term.

Where KOHO Everything Fits In

If you want high interest with flexibility, KOHO Everything sits closer to a savings account, but with extra perks for everyday life:

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

What is a Savings Account?

A savings account is a flexible place to store money while earning interest.

• You can deposit and withdraw whenever you need.

• Great for emergency funds, short-term goals, and everyday saving.

• Interest rates can change over time, and are usually lower than long-term GICs but higher than a basic chequing account.

What is a GIC?

A GIC is a deposit you lock in for a fixed term (e.g., 1–5 years) at a set rate.

• You deposit a lump sum and leave it there until maturity.

• In return, you get a guaranteed interest rate for that term.

• If you need the money early, you may not be able to access it or could lose some interest (unless it’s a cashable GIC).

GICs work best when you’re sure you won’t need that money for a while.

Key Differences

• Access to your money

  • Savings: Easy to move in and out.

  • GIC: Locked in for the term (with limited exceptions).

• Rate certainty

  • Savings: Rate can change.

  • GIC: Rate is guaranteed for the term.

• Best use

  • Savings: Emergency fund, short-term goals, everyday buffer.

  • GIC: Money you can park and forget for a set period.