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.
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.
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