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The Best TFSA-eligible GICs in Canada

If you want to shelter your interest income from a GIC, you can use either an RRSP or a TFSA. But if you want to make tax-free withdrawals at any time, you should use a TFSA.

Rates

Here are the best GIC rates on both redeemable and non-redeemable GICs (on a minimum $5,000 investment for a one-year term) as of Feb. 13:

Financial institutionInterest rate
Hubert Financial2.05%
Oaken Financial1.75%
Canadian Direct Financial1.55%
Alterna Bank1.5%
FirstOntario Credit Union1.5%
Equitable Bank1.47%
ICICI Bank of Canada1.35%
Industrial Alliance1.3%
State Bank of India1.3%
Libro Credit Union1.15%
Manulife1.15%
RBC Royal Bank0.9%
BMO Bank of Montreal0.85%
Laurentian Bank0.85%
TD Canada Trust0.85%
CIBC0.5%

As you can see, the interest rates at large financial institutions are significantly lower than those at smaller institutions. And in some cases, the interest rates offered by big banks are also less than what some smaller providers offer on their high-interest savings accounts.

The bottom line

When looking for a GIC for a TFSA, you want to get the best rate possible. That’s why you have to do a little bit of research if you want a better return on your money.

Want a better GIC rate?

Compare the best GIC rates available

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