Buying a GIC is easy but finding the best GIC rates at one of the Big Five banks is much more difficult.
While RBC Royal Bank’s GIC rates are the highest among the Big Five, the rates are lower than what other financial institutions offer. On a one-year non-registered and non-redeemable GIC, RBC’s rate is 0.9%. That’s lower than what both Oaken Financial (current rate: 2%) and Alterna Bank (current rate: 1.95%) offer.
If you were to invest $1,000 in a one-year non-registered and non-redeemable GIC that’s insured by the Canada Deposit Insurance Corporation, here’s how RBC Royal Bank’s GIC rates stack up against its competitors:
The chart above shows you can get a better rate at a number of other financial institutions. As a matter of fact, some banks’ high-interest savings accounts offer a better interest rate than what RBC Royal Bank’s GICs pay. Also, your money isn’t locked in for a specific period of time like it is with a GIC. For example, the EQ Bank Savings Plus Account has an interest rate of 2%.
The bottom line
Although RBC Royal Bank provides better GIC rates than the other big banks, the rates aren’t as high as what smaller financial institutions offer. Therefore, it’s better to look around for the best GIC rates.