Canadians rank safety of their investments as more important than the highest interest rates when considering Guaranteed Investment Certificates (GICs), suggests a new poll released by Royal Bank of Canada.

According to the poll, four-in-10 Canadians (44%) who hold GICs — or would consider holding them — place safety first; highest interest rates come in second, at 32%.

“While the popular belief is that the best rate is paramount when choosing to invest in GICs, our findings confirm that Canadians consider guaranteed principal first and foremost, for the protection and safety of their investment,” says Rosalyn Kent, head, GICs and savings, RBC. “We also found that most Canadians are taking a long-term view of their GIC investments, with 65% saying that, when deciding to purchase a GIC, having the flexibility to cash in their GICs before their maturity date was the least important consideration.”

The oll found that today’s GIC investors would be interested in increased benefits and flexibility, such as:

  • GICs that offer an interest rate that increases every year (80%);
  • GICs that provide a regular income (70%); and
  • GICs that are linked to the stock market (65%).

The RBC 2012 GIC Poll was conducted via the Ipsos I-Say Online Panel, Ipsos Reid’s national online panel. A sample of 1,297 Canadian adults — with minimum household assets of $2,500 — was surveyed June 12 to 18.