The best 5-year non-registered GIC rates

A 5-year non-registered GIC is a GIC that is held in a non-registered account, so accounts other than TFSAs, RRSPs, RRIFs, RESPS, FHSAs etc. The interest earned on these GICs are taxable, but you are not limited to an annual maximum you can deposit into the GIC in a non-registered account. 5-year GICs might be ideal for financial goals like a downpayment, renovations or vacations, but it could be argued that your money will be sheltered from taxes in a registered account.

The best 5-year GIC rates in Canada are currently paying 4.00% on 5-year non-registered GICs as of December 2024. Many providers are offering 4.05% GICs or higher right now. Many credit unions and digital banks offer particularly high rates, because of their lower operating costs, but some big banks have special rates for GICs, too. Online banks like EQ Bank or Simplii Financial offer 5-year GICs that pay high rates with low minimum deposits of just $100 vs. the average $1,000 deposit requirement, making them more accessible for Canadians with less money to invest.

Let’s look at an example to understand the possible uses of 5-year non-registered GIC.

If you are saving up for a $25,000 down payment in 5 years, you can deposit a maximum of $8,000 annually in a registered First Home Savings Account (FHSA), and put some in your TFSA up to a maximum of $7,000. But if you want to deposit more than $8,000 in one year and choose to use your TFSA for other investment goals, you’ll have a limited amount of contribution room in these accounts. So a good option would be to use a 5-year GIC or for the remainder of your down payment savings over and above the annual FHSA limit. Some people may choose to put all of their money in a 5-year GIC for specific financial goals because the money is locked in and separated from other savings, so you know it will be used for the right purpose when you need it.