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The best GIC rates in Canada

Compare GICs

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GICs for a term of
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with a balance of
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  1. Featured

    4.60%$230 total return based on$5,000 investment
    Term
    1 Year
    Type
    Non-registered
    Minimum investment
    $100
  2. Tangerine

    4.70%$235 total return based on$5,000 investment
    Term
    1 Year
    Type
    Non-registered
    Minimum investment
    $1
  3. Oaken Financial

    2022 Winner!
    4.40%$220 total return based on$5,000 investment
    Term
    1 Year
    Type
    Non-registered
    Minimum investment
    $1,000
  4. Saven Financial

    4.40%$220 total return based on$5,000 investment
    Term
    1 Year
    Type
    Non-registered
    Minimum investment
    $1,000

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Our guide to GICs

Short-term vs. long-term GICs

One of the first things you should think about when shopping for a GIC (aside from the rate itself) is whether you’re interested in a short or long-term investment. The answer to this question will largely depend on your financial goals.

Short-term GICs are a great option for those who have a short-term savings goal and want to prioritize liquidity. They take less than a year to mature, and the principal is guaranteed with an advertised rate of interest. 

Long-term GICs, on the other hand, have terms of one year or longer and typically carry higher interest rates than their short-term counterparts. These are perfect for investors with long-range savings goals (such as a downpayment on a house) or a desire to use their GIC as passive monthly income.

Best non-registered 1-year GIC rates

How are GICs insured?

The Canadian Deposit Insurance Corporation (CDIC) is a federal Crown Corporation that insures eligible deposit accounts (including GICs as well as chequing and savings accounts) made with its member banks; it’s fully backed by the Government of Canada. Insurance offered by CDIC is automatically in place for eligible accounts at CDIC member banks at no additional charge to consumers. (You don’t need to purchase insurance – it’s your bank’s insurance policy).

CDIC insurance will cover up to $100,000 of your deposits and protect your money in the highly unlikely scenario that the financial institution you bank with closes its doors or goes bankrupt. Since CDIC was founded in 1967, Canadians haven’t lost a single dollar in deposits. Over 80 banks in Canada have CDIC insurance including all of Canada’s big five banks as well as several online-only institutions like EQ Bank and Oaken Financial.

Best non-registered 5-year GIC rates

How are GIC rates calculated?

Interest on GICs is typically paid out either monthly, biannually, annually, at their maturity or on a predetermined date set by the provider.

There are two types of interest associated with GICs - simple interest and compound interest.

Simple interest is paid on the initial principal only. For example, if you invested $50,000 into a two-year GIC with 1.5% interest, you’d receive a return of $750 each year. Following this logic, at the end of your two-year term, you’d have made $1,500 in interest.

Alternately, compound interest is paid on the principal as well as the interest earned at every interval (essentially, “interest on top of interest”). If we were to use the same GIC in the example above, your total interest earned after two years would be $1,511.25. That’s a gain of $11.25 on top of your simple interest. And, if you decided to let your interest compound monthly instead of yearly, you’d net an even higher extra amount at $21.76.

 

Types of GICs

 

Cashable GICs

For those looking to take advantage of higher, GIC-level interest rates but don't feel comfortable locking their money away for too long, cashable GICs are the perfect solution. These GICs typically only involve a one-year term and have the option to cash out early after 30 to 90 days, providing an ideal solution for fluctuating interest rates. If the rate rises above that of your GIC, you can always cash out and put your money somewhere else. If it falls lower, you'll be locked into a guaranteed higher percentage for the length of your term. It's essentially a win-win. The only drawback? Cashable GICs tend to have lower interest rates than others due to their flexibility.

 

Registered GICs

Registered GICs exist inside registered investment accounts such as TFSAs and RRSPs, meaning you won't have to pay taxes on the interest accrued. That being said, you will have to obey the rules of these accounts when it comes to contribution limits.

 

Non-registered GICs

Non-registered GICs are essentially the opposite of registered GICs: while the interest you earn is taxable, there's also no limits on what you can invest.

 

Redeemable GICs

Similar to cashable GICs, redeemable GICs also allow you to cash out early if desired. The main difference? Redeemable GICs will typically allow you to access you money early without being subjected to a waiting period. The only catch is that you may get saddled with lower-than-average early redemption rates.

 

Non-redeemable GICs

The opposite of redeemable GICs, non-redeemable GICs won't allow you to access you money early without paying a penalty fee. That being said, you'll earn much higher interest.

 

Market-linked GICs

If you're looking for a GIC with some elevated risk (and the bigger gains that could come with it), a market-linked GIC may be right for you. These function as a sort of hybrid: while they're still technically GICs, they're also linked to a particular market and can only guarantee your principal investment. Unlike other GICs, these are subject to market volatility and are more of a rollercoaster.

 

Foreign currency GICs

Foreign currency GICs are just what they sound like: GICs in a foreign currency (typically USD). These are perfect for investors who travel outside Canada often.

GICs Frequent Asked Questions

What is a GIC?


What type of GICs are available?


Why invest in a GIC?


What is the difference between CDIC versus Provincial GIC insurance?


How do I buy GICs?


What are some alternative investment options to GIC?


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The best GIC providers in Canada 2022

Saven Financial GIC Rates

Saven Financial GIC rates are among the best GIC rates offered in Canada. Interest earned on GIC investments is paid on maturity and their GICs have terms ranging from one to five years, requiring a minimum investment of $1,000. Saven Financial is only available to Ontario residents. 

Wyth Financial GIC Rates

Wyth Financial offers some of the best GIC terms in Canada with a minimum investment of $1,000. Wyth GIC deposits are CDIC-insured with interest being compounded annually and paid at maturity. 

EQ Bank GIC Rates

EQ Bank GIC rates are among the best GICs offered in Canada and are CDIC-insured. Interest earned on GIC investments is paid annually. A minimum investment of $100 is required to open an account with EQ Bank. The Toronto-based independent bank offers competitive GIC rates to all Canadians, excluding residents living in Quebec.

Oaken Financial GIC Rates

Oaken Financial GIC rates are some of the best GICs offered in Canada and are CDIC-insured,  offering a competitive rate for one-year term GICs. Interest on GICs is paid annually and not compounded. Since Oaken Financial offers one of the best GIC rates on the market, a minimum investment of $1,000 is required. Oaken Financial is an independent bank eligible to all Canadian citizens.

Luminus Financial GIC Rates

Luminus Financial is a credit union offering GICs with a wide range of terms between 30 days and five years. Luminus Financial offers a very competitive rate for a non-registered GIC with a one year term. An account with Luminus Financial requires a minimum investment of $500 and is only available to Ontario residents. 

Achieva Financial GIC Rates

Achieva Financial is a digital bank offering high-interest rate GICs with varying terms of one to five years to anyone who is a resident of Canada. A minimum investment of $1,000 is required. 

Alterna Bank GIC Rates

Alterna Bank is an online bank offering GICs with terms ranging between one to five years. Alterna Bank GIC rates require a low minimum deposit of $500 with interest paid annually. Alterna is open to all Canadian residents and is CDIC-insured.

Steinbach Credit Union GIC Rates

Steinbach Credit Union GIC rates is a credit union offering GICs with terms ranging between one and five years. An account with Steinbach Credit Union requires a minimum investment of $500.

CIBC GIC Rates

CIBC currently offers a non-registered GIC with an interest rate ranging from 0.45% for a one-year term up to 1.00% for a five-year term. The CDIC-insured financial institution is among Canada’s largest banks and offers a variety of GICs and other investment products.

Scotiabank GIC Rates

Scotiabank offers GIC rates that range between 0.30% for a one-year cashable GIC and 0.50% for a five-year GIC. They are RRSP/RRIF eligible and available to all Canadians. Scotiabank also offers market linked and cashable GIC types.

RBC GIC Rates

As one of Canada’s largest banks, RBC GIC rates offer a return-rate on non-redeemable GICs ranging from 30 days to ten years. GICs purchased through interest on RBC GICs are paid annually and are not compounded. RBC is one of Canada’s largest banks and available to all Canadians.

BMO GIC Rates

Bank of Montreal GIC rates are offered at 0.40% for one-year GIC term. A minimum deposit of $1,000 is required. BMO is currently the only major bank in Canada to offer a ten-year GIC term. Since BMO is one of Canada’s major banks, it is available to all Canadians, coast to coast.

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