The best GIC rates in Canada
Guaranteed investment certificates (GICs) come with a guaranteed rate of return for a specified term. Here are our top picks for the best GIC rates in Canada.
Compare all GIC rates
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1-yr non-registered GIC rate with a minimum investment of $100
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| Term | Registered Registered GICs are held within government-regulated accounts like TFSAs, RRSPs, RESPs, etc. | Non-registered Unregistered GICs are held within accounts that are not government-regulated and are taxable. |
|---|---|---|
1-yr Compare all rates | Oaken Financial | Oaken Financial |
5-yr Compare all rates | Oaken Financial | MCAN Wealth |
GICs Frequently Asked Questions
Why invest in a GIC?
Should I invest in a fixed or variable rate GIC?
How long should I lock in a GIC for?
Where can I get more than a 5% GIC in Canada?
What will GIC rates be in 2024?
What is the difference between CDIC versus Provincial GIC insurance?
What are some alternative investment options to GICs?
What is the highest paying GIC rate in Canada?
Why are 1 year GIC rates so high?
Historical 1-year and 5-year non-registered GIC rates
Natasha Macmillan, Business Unit Director - Everyday Banking
Our guide to GICs in Canada
Canadians' interest in GICs have been on the rise in recent years as they are considered to be safe investments. There are many things to consider when shopping around for GICs - and we have broken it all down for you.
What is a GIC?
A GIC, guaranteed investment certificate, is an investment product that has a guaranteed rate of return for a specified duration of time. It is deemed to be a safe and extremely low-risk type of investment.
With a GIC, you deposit your money at a bank or other financial institution for a specific period of time (known as the “term”), and they will guarantee you a return of the principal (the initial amount you invested) plus pay you in the form of interest. GIC terms can vary anywhere from as little as 30 days up to 10 years, and typically, the longer you're willing to invest your money, the higher the interest rate you'll receive.
Are GICs worth it for you? It depends on your situation and financial goals, but in general, GICs are particularly useful if:
- You have a short investment horizon (need access to your cash soon for an upcoming retirement, home purchase, wedding etc. and can’t risk any losses to your initial deposit)
- You don’t want to be tempted to spend your money (GICs lock away your cash for a set term)
- You don’t want to take on any investment risk in the stock market
Highest GIC interest rates (non-redeemable)
- Best 1 year GIC: 4.15% at ICICI Bank Canada
- Best 2 year GIC: 4.00% at MCAN Wealth
- Best 3 year GIC: 4.00% at MCAN Wealth
- Best 4 year GIC: 3.90% at MCAN Wealth
- Best 5 year GIC: 4.00% at MCAN Wealth
Canadian GIC rates comparison
Compare Canadian GIC rates (non-redeemable and non-registered) using the most popular term lengths in the table below.
| Provider | 1-year GIC | 2-year GIC | 3-year GIC | 4-year GIC | 5-year GIC | Minimum investment |
| Achieva Financial GICs | 4.05% | 3.90% | 3.70% | 3.65% | 3.70% | $1,000 |
| Alterna Bank GICs | 3.60% | 3.40% | 3.30% | 3.25% | 3.30% | $500 |
| BMO GICs | 3.40% | 3.25% | 3.30% | 3.25% | 3.30% | $1,000 |
| CIBC GICs | 3.25% | 3.10% | 3.10% | 3.05% | 3.00% | $1,000 |
| EQ Bank GICs | 3.85% | 3.75% | 3.75% | 3.80% | 3.85% | $100 |
| Hubert Financial GICs | 4.05% | 3.95% | 3.85% | 3.75% | 3.65% | $1,000 |
| ICICI Bank Canada GICs | 4.15% | 3.80% | 3.70% | 3.50% | 3.50% | $1,000 |
| LBC Digital GICs | 3.80% | 3.75% | 3.70% | 3.65% | 3.55% | $1,000 |
| MCAN Wealth GICs | 4.05% | 4.00% | 4.00% | 3.90% | 4.00% | $100 |
| Meridian Credit Union GICs | 3.65% | 3.60% | 3.40% | 3.40% | 3.45% | $1,000 |
| Motive Financial GICs | 3.90% | 3.75% | 3.70% | 3.60% | 3.60% | $1,000 |
| National Bank GICs | 3.40% | 3.45% | 3.30% | 3.35% | 3.50% | $500 |
| Oaken Financial GICs | 4.05% | 4.00% | 3.95% | 3.80% | 3.90% | $1,000 |
| Peoples Trust GICs | 4.00% | 3.75% | 3.65% | 3.60% | 3.60% | $1,000 |
| RBC GICs | 3.25% | 3.10% | 3.10% | 3.05% | 3.00% | $1,000 |
| Saven Financial GICs | 4.05% | 4.00% | 3.85% | 3.75% | 3.90% | $1,000 |
| Simplii Financial GICs | 3.59% | 3.39% | 3.39% | 3.46% | 3.59% | $100 |
| Scotiabank GICs | 3.40% | 3.25% | 3.15% | 3.10% | 3.05% | $1,000 |
| Tangerine GICs | 3.85% | 3.80% | 3.80% | 3.75% | 3.75% | $500 |
| TD Bank GICs | 3.50% | 3.50% | 3.30% | 3.30% | 3.35% | $1,000 |
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.
Alternatively, 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 in Canada
1. Cashable GICs
For those looking to take advantage of higher GIC 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.
2. Registered GICs vs. non-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 are essentially the opposite of registered GICs: while the interest you earn is taxable, there's also no limits on what you can invest.
3. Redeemable GICs vs. non-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.
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.
4. Market-linked GICs
If you're looking for a GIC with some higher potential returns, 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 stock market index and can only guarantee a minimum and maximum total return as a percentage. Unlike other GICs, these are subject to market volatility.
5. Foreign currency GICs
Foreign currency GICs are just what they sound like: GICs in a foreign currency (typically USD GICs). Investing in a U.S. currency GIC would diversify your portfolio, and since the US dollar is generally stronger than ours, you could benefit from the difference.
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.
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. CDIC coverage 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.
GIC pros and cons
Pros of GICs
Cons of GICs
It's important to consider your own financial goals and risk tolerance before investing in GICs. Consulting with a financial advisor can also provide guidance for your specific situation.
GIC Investment strategies
GIC Laddering
GIC laddering is a simple way to maximize the return from your GIC investments, without locking in all of your money into one long-term investment. With this strategy you divide your money into multiple GICs, with varying maturity dates. This means you're able to access your investment at regular intervals, when the GICs mature. This can also help take advantage of higher interest rates.
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