The Best GICs in Canada

Craig Sebastiano
by Craig Sebastiano February 3, 2017 / No Comments

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.

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):

Financial institution Interest rate
Hubert Financial 2.05%
MAXA Financial 1.85%
Comtech Credit Union 1.75%
Entegra Credit Union 1.75%
Steinbach Credit Union 1.75%
FirstOntario Credit Union 1.7%
Canadian Direct Financial 1.55%
Alterna Bank 1.5%
Equitable Bank 1.3%
State Bank of India 1.3%
PC Financial 1.25%
Tangerine 1.2%
Libro Credit Union 1.15%
Manulife 1.15%
ICICI Bank of Canada 1.1%
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%

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.

Want a better GIC rate?

Compare the best GIC rates available

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Flickr: KMR Photography