GIC rates can vary depending on the provider you choose. But the best GIC rates aren’t offered by the Big Five banks.
Scotiabank’s GIC rates are about the same as many of its competitors, such as BMO Bank of Montreal and TD Canada Trust. For a one-year non-registered and non-redeemable GIC, the interest rate is just 0.85%. Currently, that’s much less than the interest rate offered by Oaken Financial (2%) and Alterna Bank (1.95%).
How do Scotiabank’s GIC rates compare to its competitors? If you have $1,000 to invest, here are the rates (as of Oct. 21) offered on a one-year non-registered and non-redeemable GIC that’s insured by the Canada Deposit Insurance Corporation:
|Financial institution||Interest rate|
|Canadian Direct Financial||1.7%|
|State Bank of India||1.3%|
|RBC Royal Bank||0.9%|
|BMO Bank of Montreal||0.85%|
|TD Canada Trust||0.85%|
As the chart above shows, the GIC rates at many other financial institutions easily top the rates that the big banks offer. And some high-interest savings accounts—like the EQ Bank Savings Plus Account, which has an interest rate of 2%—have better rates than what Scotiabank and other banks pay on their GICs.
The bottom line
The big banks’ GIC rates aren’t very competitive if you compare them to smaller financial institutions. That’s why it pays to shop around for the best GIC rates.