The Canadian equivalent of a Canadian GIC is called a Certificate of Deposit in the US (CD). A CD is a savings product offered by banks and credit unions that requires a fixed amount of money to be deposited for a specified period. During this time, you will earn a guaranteed interest rate. The principal amount is protected, and you will receive it back, along with the accrued interest, at the end of the term. If you withdraw the money early, you might be penalized for preterm withdrawal. CDs are relatively safe investments that are similar to GICs and are therefore in high demand from people who want the security of the capital's preservation as well as the ability to gain some profit.