The best 1-year non-registered GIC rates

A GIC is a low-risk investment option where you deposit a specific amount of money for a fixed term at a predetermined interest rate. 1-year non-registered GICs are widely available through various financial institutions. They are straightforward investment products, making them ideal if you're looking for a hassle-free investment option. With GICs you're also able to project your future earnings using a GIC calculator. Compare today’s best GIC rates to find a GIC that best suits your financial goals. 

What is a 1-year GIC?

Considered a long-term GIC, a 1-year term means the GIC agreement is valid for 12 months from when you first opened the account - during which your interest rate will be locked in and your money will be held by the bank or credit union. After the 1-year period ends, the GIC will mature and the agreement will end, allowing you to withdraw the original amount of money you deposited plus any interest you accrued.

A 1-year term is the most widely popular among those looking to open a GIC and is an ideal sweet spot; it’s a short enough period of time to fit with a range of savings goals while being separated from your cash but is also long-enough for financial providers to offer enticing interest rates. 

Most 1-year GICs are non-redeemable, which means your money is inaccessible for the entirety of the 1-year term and withdrawing your cash before the agreement ends will result in a penalty unless certain conditions are met. But there are 1-year cashable GICs available with most major banks and financial institutions, too. You can withdraw your money from a cashable GIC at any time after 30 days without penalty or losing interest.  

Pros and cons of 1-year non-registered GICs

1-year non-registered GICs are a great way to lock in your savings and keep them separate from your other savings and spending accounts so you can achieve your specific goal. However, a 1-year GIC may not be the best place to store your emergency fund or cash you suspect you’ll need on short notice. A 1-year GIC should also be reserved for savings goals with short time-horizons (if you plan to invest your money for a time period that's several years in the future, like retirement, a robo-advisor or online brokerage may be a better alternative).

Short-term GICs with terms of between 30 to 270 days are also an option if you can’t be parted from your cash for up to 1 year, or you can consider a high-interest savings account that has no restrictions on withdrawals but doesn’t guarantee a fixed interest rate.

The best overall GICs in Canada