How do RBC’s GIC Rates Stack up Against the Competition?

Craig Sebastiano
by Craig Sebastiano October 18, 2016 / No Comments

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:

Financial institution Interest rate
Oaken Financial 2%
Alterna Bank 1.95%
Canadian Direct Financial 1.7%
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%

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.

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categories: Deposits