RRSP season is here and you may be considering investing in a GIC. If you want one that’s also RRSP-eligible, a number of financial institutions offer competitive interest rates.
Rates on registered GICs currently vary between 0.85% and 2.05%. If you’re looking for the best GIC rates, these are the rates on both redeemable and non-redeemable GICs (on a minimum $5,000 investment for a one-year term) as of Feb. 3:
|Financial institution||Interest rate|
|Comtech Credit Union||1.75%|
|Entegra Credit Union||1.75%|
|Steinbach Credit Union||1.75%|
|Canadian Direct Financial||1.55%|
|FirstOntario Credit Union||1.5%|
|ICICI Bank of Canada||1.35%|
|RBC Royal Bank||0.9%|
|BMO Bank of Montreal||0.85%|
|TD Canada Trust||0.85%|
You’ll notice that smaller financial institutions offer significantly better rates than their larger counterparts. Also, GIC rates are often higher than high-interest savings accounts because your money is locked in for a certain period of time.
The bottom line
As RRSP season comes to a close, you’re probably looking at different investment options for your money. A GIC is considered to be a fixed-income investment and can help diversify your portfolio if you invest mainly in stocks. If you want a GIC that pays a higher rate, make sure you shop around for the best rate.