# can you redeem a non-redeemable GIC?



## llagebs (Feb 24, 2014)

This sounds like a stupid question, but hear me out. I have this 3 year non-redeemable RRSP GIC that I don't want (long story). It's with CIBC investors edge. It matures in 2016 and I'd really just like to cash it out and transfer to my main RRSP self directed account. I'm fine with foregoing the interest that accumulated in the past year (as you can guess, it's not much).

My question is, can you do this? The non-redeemable part implies you can't, but ING Direct lets you do it with theirs, so who knows?

Maybe someone here knows, and can spare me 20 minutes on hold with CIBC.


----------



## birdman (Feb 12, 2013)

Can't specifically say for sure but generally a non redeemable mean just that and expect a "no" answer. In theory your non redeemable term deposit is matched off a 3 year mortgage and the bank makes their earnings on the interest spread between the two. Now, I have heard of it and done it myself when I was in the business, that if interest rates have dropped signifcantly over the past while they may consider it as they could replace the term with one at a lesser cost. i would expect you could borrow against it at prime rate.


----------



## BC Eddie (Feb 2, 2014)

When I had GICs with CIBC my branch manager said it was not normally allowed but exceptions could be made, especially if you were a good customer. So it is worth asking.


----------



## the-royal-mail (Dec 11, 2009)

May I ask how much money we're talking about here? If the GIC is only worth $1500 then I would argue against bothering with this. That you have not accumulated much interest in the past year suggests this is not a large sum at all. It would have to be a pretty large sum for me to bother with something like this. I don't think it is easy to do. The bank told me I would have to prove extreme hardship for them to consider such a thing.

Leave the money there and save up additional funds to fund your RRSP.


----------



## wendi1 (Oct 2, 2013)

My TD account will cash "non-redeemable" GICs, however you have to accept the lesser interest rate for a shorter time period. Ask CIBC, not us. Asking is always free.


----------

