GICs are safe, low-risk investments that work similarly to a savings account. You deposit money into a GIC account, and that amount earns interest over time. The difference is, a GIC requires you to leave the money in the account for a specified period of time (a term) – if you elect to withdraw your funds early, before your term is up, you typically have to pay a penalty. Terms range from 1 year to 5 years. The longer your term, the higher the interest available for you to earn. Upon completion of your term period, you receive the entire sum that you deposited, plus your earned interest.