If you’re looking to invest your money, you can choose between mutual funds, stocks, and bonds. But if you want a low-risk investment, you’ll probably want to consider buying a GIC.
With a GIC, you’ll get a guaranteed return on your money for a specific period of time. When choosing a GIC, it’s important to get the best bang for your buck. In that case, you’ll want to look for the best GIC rates.
Looking for the highest GIC rates in the country? As of Jan. 30, these are the rates on non-registered one-year GICs that are either redeemable or non-redeemable (on a minimum $5,000 investment):
As the chart above shows, the rates vary considerably. What’s interesting is that GIC rates offered by some financial institutions are similar or lower than the rates on some high-interest savings accounts. For example, the rate on a one-year GIC at Alterna is 1.5% while the rate on the Alterna Bank High Interest eSavings Account is 1.95%.
The bottom line
Interest rates on GICs vary by financial institution and your money is locked in for a certain period of time. In some cases, it may be better to put your money in a high-interest savings account because you might be able to get a superior interest rate.