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:
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.