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Difference between RSP and GIC

Difference between RSP and GIC

When it comes to saving for the future, there are a few different options to choose from. Two of the most popular choices are RSPs and GICs. But what’s the difference between them? Here’s a look at how RSPs and GICs work, and which one might be right for you.

What is RSP?

RSP, or Registered Savings Plan, is a type of investment vehicle that allows individual investors to save for the future. This can be done through a variety of investment instruments, such as stocks, bonds, and mutual funds. To participate in an RSP, individuals must usually open an investment account with a brokerage firm or investment company. They then deposit money into their account on a regular basis, which is invested according to the investment strategy they choose. Thanks to its many benefits, such as tax advantages and potential returns on investment, RSPs are a popular way for many people to save for their financial goals. Whether you are just starting out on your investing journey or you have been investing for years, an RSP can help you reach your financial goals in a smart and efficient manner.

What is GIC?

GIC, or guaranteed investment certificates, is a type of investment product that is typically offered by banks and other financial institutions. As the name suggests, GICs provide investors with a relatively predictable rate of return, as they are backed by the issuer in case of a default. This makes GICs a popular investment option for individuals and institutions that are looking for stability and security in their investment portfolios. A variety of different types of GICs exist, each offering different terms and rates depending on market conditions. Additionally, many GIC products can be customized to meet individual investment goals and risk preferences. Overall, whether you are an individual investor or part of a large institutional fund, GICs can be an effective way to grow your wealth over time.

Difference between RSP and GIC

RSPs and GICs are two common investment options for people looking to save for the future. RSPs, or registered retirement savings plans, allow people to contribute a portion of their income into an investment account that is funded through tax breaks and matched funds from the government. GICs, or guaranteed investment certificates, are typically offered by banks and other financial institutions and guarantee a rate of return on deposits over a fixed period of time. While RSPs offer more flexibility in terms of how funds can be invested, GICs provide a more stable approach with limited risk. Ultimately, choosing between RSPs and GICs will depend on your individual circumstances and investment goals. Whether you are looking to build your nest egg slowly over time or want some peace of mind knowing that your money is protected, RSPs or GICs may be right for you.


In conclusion, there is a clear difference between RSPs and GICs. Registered Savings Plans are government-approved plans that offer tax advantages for Canadians, while Guaranteed Investment Certificates are investment products that provide a guaranteed rate of return over a set period of time. When deciding which product is right for you, it is important to consider your financial goals and risk tolerance.

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