Sometimes you need to take out all risk, and a GIC does offer that.  For example, my son is heading off to college in 12 months time, and I've migrated the bulk of his RESP to GICs.  I purchased Home Trust GIC's a few months ago with a one year rate over 2%.  Fully insured, running at about the rate of inflation, and it removes the risk of a market correction with money he can ill afford to lose.  A cash component should be part of most investment strategies.  GICs are just one way to easily do that.