Digital banks promise better rates on high-interest savings accounts than most financial institutions. But when it comes to GICs, do they offer the best GIC rates?
Tangerine’s GIC rates are higher than what the Big Five banks offer (including parent company Scotiabank) but lower than what some smaller financial institutions provide.
Here’s a chart showing the rates being offered on one-year non-registered and non-redeemable GICs that are insured by the Canada Deposit Insurance Corporation (as of Nov. 10):
|Financial institution||Interest rate|
|Canadian Direct Financial||1.63%|
|State Bank of India||1.3%|
|RBC Royal Bank||0.9%|
|BMO Bank of Montreal||0.85%|
|TD Canada Trust||0.85%|
Tangerine’s GIC rates are just 1.2%. While that’s competitive with most large financial institutions, the rates are than what’s offered by a number of competitors like PC Financial, Alterna Bank, and Oaken Financial.
The bottom line
While digital banks do offer better rates on high-interest savings accounts and GICs than the Big Five banks, it does pay to compare rates and search for the best GIC rates if you’re looking for a better return on your savings.