Annual interest is calculated on the face value of the GIC and paid to you either on the anniversary of the date you purchased your GIC, twice a year or each month, depending on your choice. If you choose compound interest, the interest you earn is re-invested on your behalf so you earn interest on your interest. This is known as compound interest. When your GIC matures, we will redeem the principal amount of your GIC plus all of your compound interest. The longer the term of your GIC, the greater the compound interest benefit to you.