How do BMO’s GIC Rates Compare?

Craig Sebastiano
by Craig Sebastiano October 12, 2016 / No Comments

BMO Bank of Montreal is one of the many financial institutions in Canada that offers GICs. However, the bank doesn’t offer the best GIC rates.


To buy a GIC from BMO, you’ll need to make a minimum investment of at least $1,000. The rate that BMO offers on a one-year non-registered and non-redeemable GIC is 0.85%, which is much lower than the Oaken Financial GIC (current rate: 2%) and the Alterna Bank GIC (current rate: 1.95%).

Here’s how BMO’s GIC rates (on a one-year non-registered and non-redeemable GIC with a $1,000 investment that’s insured by the CDIC) compare:

Financial institution Interest rate
Oaken Financial 2%
Alterna Bank 1.95%
Canadian Direct Financial 1.6%
Equitable Bank 1.46%
PC Financial 1.4%
State Bank of India 1.3%
Tangerine 1.2%
National Bank 0.9%
RBC Royal Bank 0.9%
BMO Bank of Montreal 0.85%
HSBC 0.85%
Laurentian Bank 0.85%
Scotiabank 0.85%
TD Canada Trust 0.85%
CIBC 0.55%

As you can see, most financial institutions offer better rates than BMO. In fact, you can get a superior interest rate if you open a high-interest savings account at some financial institutions. For instance, the EQ Bank Savings Plus Account has an interest rate of 2% and your money isn’t locked in like it is with a non-redeemable GIC.

The bottom line

BMO’s GIC rates aren’t great when compared to what the bank’s competitors offer. If you’re looking for a GIC that pays a high interest rate, you should shop around for a better rate.

Want a better GIC rate?

Compare the best GIC rates available

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categories: Deposits