Fixed income products

Region: Ontario Answer # 1255

A fixed income product can refer to any type of investment product that provides a fixed or regular payment. Examples of the most common types of fixed income products include government bonds, treasury bills, Guaranteed Investment Certificates (GICs) and pensions. Fixed income products are often provided by banks and other financial institutions.

For many investors, especially those who are retired, the benefit of purchasing fixed income products is that they are a secure and low-risk way of generating a steady income. Fixed income products will provide a guaranteed return on the investment. Many products also have the option of being cashable prior to maturity, which gives the investor flexibility should they need to access their investment. In addition, some fixed income investments, such as bonds, can provide instant access to your money as they can be sold at any time.


A bond is a loan. When you buy a bond, you are lending your money to the company or government that issued the bond. The company or government promises to pay you a specific amount of interest for a specific period, and they also promise to repay the loan.

Canada Savings Bonds discontinued

As of November 2017, the Government of Canada has discontinued the sale of both Canada Savings Bonds (CSBs) and Canada Premium Bonds (CPBs).

Any CPBs and/or CSBs that customers currently hold are safe, guaranteed, and will be honoured at the time of redemption or maturity, whichever comes first. The bonds will continue to earn interest until redemption or maturity, according to the terms and conditions of the bonds.

For more information, visit the Government of Canada website.

Guaranteed Investment Certificates (GICs)

A GIC is a note with a fixed yield and term. The Canada Deposit Insurance Corporation (CDIC) insures many GICs for interest and principal totaling up to $100,000. GICs can be non-redeemable, or cashable before the term is complete.


Treasury Bills

Treasury bills, also known as T-bills, are generally one of the safest investment products. They are issued by a federal government, and are a good option for investors seeking a one to-12 month investment period.



Pension plans are often invested in both low-risk and moderate-risk investment products because the principal amount needs to be protected while at the same time generate enough income to make pension benefit payments. Consequently, the Canada Pension Plan and most employer pension plan portfolios (such as the teachers’ pension plan), are invested in funds that include fixed income products. For information on other investment options, visit the Investments and Securities section of Legal Line.


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