If you want a guaranteed rate of return on your money, you’ll probably want to purchase a GIC. To get a great rate, you’ll usually need to invest $1,000 or more.
But if you don’t have $1,000, you can still get a very good rate. The only problem is your options are a little more limited. As of April 5, these are the best GIC rates in Ontario on non-registered one-year GICs (both redeemable and non-redeemable) with a $500 investment:
|Financial institution||Interest rate||CDIC insured|
|Steinbach Credit Union||1.75%||No|
|FirstOntario Credit Union||1.5%||No|
|Libro Credit Union||1.15%||No|
In order to purchase at a GIC from most of the institutions listed above, you’ll need to open an account. However, there are a couple of exceptions. FirstOntario Credit Union’s GICs can also be purchased from some deposit brokers. And Laurentian Bank’s GICs can also be purchased from certain deposit brokers, discount brokerages, and investment advisors.
While the GICs offered by credit unions aren’t insured by the Canadian Deposit Insurance Corporation, the deposits are protected by provincial deposit insurance plans.
In most cases, the GIC rates that most financial institutions offer are higher than what they offer on their high-interest savings accounts usually because your money’s locked in for a specific period of time. However, the rate on Alterna’s one-year GIC is 1.5% while the rate on the Alterna Bank High Interest eSavings Account is 1.95%.
The bottom line
Even if you don’t have a lot of money to invest in a GIC, it doesn’t mean you’ll be stuck with a low rate. If you shop around, you can still find a good rate.
Want a better GIC rate?
Compare the best GIC rates available
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