When shopping for a GIC, one of the most important things is finding the best GIC rate. But if you’re looking for a good rate, you won’t find it at one of the Big Five banks.
Rates
TD Canada Trust’s GIC rates are about the same as other large financial institutions. The rate is just 0.85% on a one-year non-registered and non-redeemable GIC. That’s the same as BMO Bank of Montreal and Scotiabank but slightly lower than the 0.9% that RBC Royal Bank offers.
How do those rates compare to smaller financial institutions? Let’s assume to have $1,000 to invest in a GIC. Here’s a look at the rates (as of Oct. 21) being offered on one-year non-registered and non-redeemable GICs that are insured by the Canada Deposit Insurance Corporation:
The rates being offered by the big banks are much lower than smaller financial institutions. For example, Oaken Financial’s GIC rates are 2% while Alterna Bank’s GIC rates are 1.95%.
The bottom line
Canada’s Big Five banks don’t have the highest GIC rates in the country. If you’re looking for a better return on your money, you should look for the best GIC rates.