FRAUD WARNING: Your compensation money is yours to use in a way that works with your goals, traditions and values. Be cautious of unexpected fees, scammers and even people in your life who may not understand your needs or boundaries. Learn more about how you can protect yourself and your compensation.
Turn your compensation into monthly payments
Monthly payments are available through a specific type of investment called a Guaranteed Investment Certificate (GIC) with regular payments. These are offered by certain financial institutions, and can often be set up online, over the phone, or by visiting a local branch.
Some people may choose to use their compensation money for everyday needs, save it for the future, or invest it to help it grow. One option that can provide both financial security and steady income is setting up monthly payments.
Monthly payments let you receive a portion of your compensation every month — instead of all at once — while your money earns interest through a secure investment. This can help you:
- Plan for monthly expenses or emergencies
- Budget for important purchases
- Feel confident about your financial future
What is a Guaranteed Investment Certificate (GIC)?
A Guaranteed Investment Certificate (GIC) is a safe and low-risk investment you can purchase at a bank, credit union or other financial institution.
When you purchase a GIC:
- Your money is “locked in” at a fixed interest rate for a set investment period
- You are guaranteed to earn a certain amount of interest
- Your original investment is protected, even if interest rates change
Some GICs are insured, which means your money stays protected even if something happens to the financial institution. Coverage amounts and rules vary.
Some GICs allow you to receive monthly payments during the investment period.
How are GICs insured?
Federally regulated banks
GICs purchased from all national banks, federally regulated credit unions, and loan and trust companies, are insured up to $100,000 by the Canada Deposit Insurance Corporation (CDIC). Find a list of CDIC member institutions here.
Provincially regulated credit unions
GICs purchased from provincially regulated credit unions are insured by provincial deposit insurance organizations, with coverage limits and rules varying by province. Ask your credit union or visit the web page of your province’s deposit insurer to learn more. You can find a list of regulators, deposit insurers and credit unions in each province here.
- Deposit insurance is not available in the Yukon, Northwest Territories and Nunavut because no regulated credit unions operate there.
Caisses populaires (Quebec)
GICs purchased at caisses populaires in Québec are insured by Autorité des marchés financiers (AMF).
How do monthly payments work?
With a GIC that offers monthly payments:
- You receive a steady income on a regular schedule — usually monthly
- Your payments come from both your original compensation and the interest it earns
- At the end of the term, you will have received the full amount of your compensation plus the interest
Important: If you withdraw all your money early, you may face a penalty, which could reduce the total amount you would have otherwise received. Choose an investment term that works for your needs.
Key features of monthly payments
- Flexible schedules: Payments can be made monthly or on a schedule that works for you
- Custom investment terms: Choose from 1, 2, 3, 5, 10, 15, or 20 years
- Guaranteed payment amount: Your monthly payment stays the same throughout the term
- More interest with longer terms: Longer investment terms often earn more interest over time
At the end of the investment term, you will have received the full amount of your compensation and the interest earned.
Example monthly payments
Here’s an example of what your monthly payments could look like with a GIC at 3% interest:
| Compensation Amount | 3-Year Term | 5-Year Term |
|---|---|---|
| $40,000 | ~$1,160/month | ~$720/month |
| $30,000 | ~$870/month | ~$540/month |
| $20,000 | ~$580/month | ~$360/month |
These amounts are examples only. Actual amounts will depend on the financial institution and the terms you choose.
Tax implications
It’s important to know that, depending on the type of investment product you choose, you may be required to pay taxes on the interest you earn on your investment.
Tax tip: Some financial institutions offer GICs through on-reserve branches, which may allow you to earn interest tax-free. Speak to your branch to learn if this applies to you.
Learn more about taxation and social benefits →
Need more information?
- Visit the financial information and resources page →
- Download the Monthly Payments Brochure (PDF) →
- Talk to someone you trust who knows about finances to help you make the best decision for your needs and goals
Looking for more?
The links below lead to trusted external resources, including some created specifically for Indigenous Peoples, to help you understand and manage ongoing income and interest-bearing options like GICs.
Government of Canada – FCAC
Financial Consumer Agency of Canada’s Financial tools and calculators – free tools, including a budget planner and financial goal calculator to help you plan your monthly payments.
Government of Canada – FCAC
Financial Consumer Agency of Canada’s “Basics of investing” – overview of how investing works, including different types of investments, associated costs, tax implications and when investing might be appropriate for your situation.
