You should invest in a GIC if you want a safe, low-risk investment with guaranteed returns. GICs guarantee your original deposit and pay a fixed or variable interest rate over a set term, making them ideal if you want to avoid market volatility. While returns are typically lower than stocks or ETFs, GICs offer stability and predictability, which can help balance a diversified portfolio.

The best GIC rates in Canada

Q: Should I invest in a fixed or variable rate GIC?

You should choose a fixed-rate GIC for certainty, or a variable-rate GIC if you expect interest rates to rise. Fixed-rate GICs lock in a guaranteed interest rate for the entire term, so you know exactly how much you’ll earn. Variable-rate GICs fluctuate based on a benchmark like a bank’s prime rate, meaning your returns can increase if rates go up—but also decrease if rates fall.

Q: What is the best GIC rate in Canada right now?

As of March 2026, the highest paying 1-year term GIC rate in Canada is 3.60% offered by Achieva Financial. For GICs with a 5-year term, Achieve Financial offers the highest rate at 3.85%.

Q: Can you cancel a GIC early?

You usually cannot cancel a GIC early unless it is redeemable or cashable. Most GICs are non-redeemable, meaning your money is locked in until the end of the term and early withdrawal is either not allowed or comes with penalties. Some GICs offer flexibility, such as cashable or redeemable options, but these typically pay lower interest rates.

GICs offer a secure way to grow your savings with a guaranteed return over a fixed term. Comparing the best GIC rates can help you maximize your interest while choosing the right term and level of flexibility. Here are our top picks for the best GIC rates in Canada.

Compare all GIC rates

Term	Registered	Non-registered
1-mo	No available rate at the moment.	Oaken Financial
3-mo	EQ Bank	EQ Bank
4-mo	Oaken Financial	Oaken Financial
6-mo	EQ Bank	EQ Bank
1-yr Compare all rates	Achieva Financial	Achieva Financial
2-yr	Achieva Financial	Achieva Financial
3-yr	Achieva Financial	Achieva Financial
4-yr	EQ Bank	EQ Bank
5-yr Compare all rates	EQ Bank	EQ Bank
10-yr	EQ Bank	EQ Bank

Featured
EQ Bank
3.20%
1-year Non-registered
get this rate
Featured
Oaken Financial
3.20%
1-Year Non-Registered and Non-Redeemable GIC
get this rate

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?

You should choose your GIC term based on when you’ll need access to your money. Short-term GICs (1-2 years) or a high-interest savings account are better if you need flexibility, while longer-term GICs (3-5+ or even 10 years) typically offer higher rates but require you to lock in your funds. Align your term with your financial goals, such as a home purchase, emergency fund, or long-term savings.

What will GIC rates be in 2026?

With the Bank of Canada’s overnight target rate currently holding, GIC rates in Canada have stayed steady, though they have decreased in the past year; in early 2024 the best 5-year non-registered GIC rates were closer to 5%, whereas today they are below 4%. Economists are forecasting that rates will stay unchanged for the time being; interest rates for deposits and GICs will in turn remain unchanged.

What is the difference between CDIC versus Provincial GIC insurance?

The difference between CDIC and provincial GIC insurance is that CDIC covers bank-issued GICs, while provincial insurance covers GICs issued by credit unions. The Canada Deposit Insurance Corporation (CDIC) is a federal program that protects eligible deposits up to $100,000 at member banks. Provincial deposit insurance plans offer similar protection for credit unions, but coverage limits and rules can vary by province. Provincially insured GICs are typically issued by credit unions and their digital banking divisions, such as Saven Financial and Meridian Credit Union, and are backed by each province’s deposit insurance program. Overall, both CDIC and provincial insurance provide strong protection for your principal, with only minor differences in coverage and policies.

Also read: Should I Get a GIC With a Bank or Credit Union?

What is the best GIC rate in Canada right now?

Is a GIC a good option during a recession?

A GIC is a good option during a recession because it keeps your money safe and guarantees a return. When the economy is uncertain and markets are falling, GICs protect your original investment and still pay interest. This makes them a reliable choice if you want stability or don’t want to risk losing money. Many people use GICs alongside other investments to reduce risk during downturns. A basic rule of thumb is to use your age as the percentage of money to allocate to safe assets like GICs, but you should adapt this to your individual financial situation.

Should I buy a GIC now or wait?

You should consider buying a GIC now if you want to lock in a guaranteed rate, but waiting may make sense if you expect rates to rise. With the Bank of Canada holding its overnight rate at 2.25% in March 2026, GIC rates have remained relatively stable, generally sitting below 4%. However, the outlook is less straightforward than it was earlier this year. While inflation cooled to 1.8% in February, the Bank is now watching for the possibility that rising geopolitical tensions and higher energy prices could push inflation higher again. At the same time, GDP and labour market data have weakened, leaving the Bank to balance inflation risks against a slowing economy. For savers, GICs still offer a low-risk and predictable return, but future yield moves will depend on how these competing pressures evolve. Locking in now may make sense if you value certainty, while waiting could appeal if you think inflation risks will keep rates elevated for longer.

Can you cancel a GIC early?

Historical 1-year and 5-year non-registered GIC rates

Natasha Macmillan, Senior Business Unit Director - Everyday Banking

March 18, 2026

Our guide to the best GICs in Canada

Comparing the best GICs in Canada can help you earn more interest while keeping your savings secure. This guide breaks down how to compare GIC rates, choose the right term, and find the best option for your financial goals.

What is a GIC?

A GIC (Guaranteed Investment Certificate) is a low-risk investment that pays a fixed or variable interest rate over a set period of time, while guaranteeing your original deposit.

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 a good investment today? 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: 3.60% at Achieva Financial
Best 2 year GIC: 3.80% at Achieva Financial
Best 3 year GIC: 3.70% at Achieva Financial
Best 4 year GIC: 3.75% at Achieva Financial
Best 5 year GIC: 3.85% at Achieva Financial

ratehub.ca insights: The Bank of Canada held its overnight rate at 2.25% in its latest announcement, signalling a continued pause as it monitors inflation. As a result, deposit rates have remained relatively stable across both GICs and high-interest savings accounts. Currently, the best GIC rates in Canada range from 2.25%–3.85% for 1- to 5-year terms, while HISA rates range from 1.50%–4.75%, depending on promotional offers. Consider comparing rates regularly or locking into a GIC to secure a guaranteed return while rates remain steady.

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	3.60%	3.80%	3.70%	3.75%	3.85%	$1,000
Alterna Bank GICs	2.75%	2.90%	3.15%	3.30%	3.40%	$500
BMO GICs	2.25%	2.40%	2.55%	2.70%	3.00%	$1,000
CIBC GICs	2.45%	2.55%	2.60%	2.70%	2.75%	$1,000
EQ Bank GICs	3.20%	3.50%	3.65%	3.15%	3.85%	$100
Hubert Financial GICs	3.45%	3.55%	3.65%	3.70%	3.80%	$1,000
ICICI Bank Canada GICs	2.70%	2.90%	2.90%	2.90%	3.10%	$1,000
LBC Digital GICs	3.00%	3.30%	3.45%	3.50%	3.60%	$1,000
MCAN Wealth GICs	3.40%	3.50%	3.60%	3.60%	3.80%	$100
Meridian Credit Union GICs	2.80%	3.15%	3.30%	3.40%	3.60%	$1,000
National Bank GICs	2.50%	2.60%	2.80%	2.90%	3.15%	$500
Oaken Financial GICs	3.00%	3.30%	3.60%	3.60%	3.80%	$1,000
Peoples Trust GICs	2.90%	3.00%	3.25%	3.25%	3.45%	$1,000
RBC GICs	2.45%	2.55%	2.55%	2.70%	2.75%	$1,000
Saven Financial GICs	3.55%	3.60%	3.70%	3.70%	3.80%	$1,000
Simplii Financial GICs	2.81%	2.86%	2.96%	3.15%	3.25%	$100
Scotiabank GICs	2.45%	2.50%	2.60%	2.70%	2.75%	$1,000
Tangerine GICs	3.15%	3.30%	3.35%	3.40%	3.50%	$500
TD Bank GICs	2.60%	2.65%	2.75%	2.90%	3%	$1,000

How GIC interest is calculated

GIC interest is calculated based on how interest is applied to your deposit over time. Interest may be paid monthly, semi-annually, annually, or at maturity, depending on the provider and product.

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 2% interest, you would earn $1,000 per year, for a total of $2,000 over the full term.

Alternatively, compound interest is calculated on both your principal and the interest earned over time (“interest on interest”). Using the same example, your total return after two years would be $2,020 – $20 more than simple interest. And, if your interest compounds monthly instead of yearly, you would earn slightly more again, bringing your total interest to about $2,040.27, or $40.27 more than simple interest.

What affects GIC rates in Canada?

GIC rates in Canada are influenced by the Bank of Canada’s policy interest rate and overall economic conditions. When interest rates rise, the best GIC rates in Canada tend to increase. When rates are held or lowered, GIC rates generally remain stable or decline.

Other factors, such as inflation and competition between financial institutions, can also impact current GIC rates and the returns offered on different term lengths.

Are GICs taxable in Canada?

GIC interest is taxable in Canada unless the GIC is held in a registered account like a TFSA or RRSP. For non-registered GICs, all interest earned is fully taxable as income at your marginal tax rate, even if the interest is not paid out until maturity. This means you may have to report and pay tax on interest each year it is earned, depending on how your GIC is structured.

If your GIC is held in a TFSA, all interest is completely tax-free. If it’s held in an RRSP, taxes are deferred until you withdraw the funds, at which point the amount is taxed as income. Because of this, many investors choose to hold GICs in registered accounts to reduce or defer taxes on their interest income.

Types of GICs in Canada

1. Cashable GICs

A cashable GIC is a type of GIC that allows you to withdraw your money early after a short waiting period, usually 30 to 90 days. 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 are held within 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

Redeemable and non-redeemable GICs differ mainly in whether you can access your money before the end of the term. Redeemable GICs allow you to withdraw your money early, often without a waiting period. However, this flexibility usually comes at a cost; you may receive a lower interest rate overall or a reduced rate if you cash out early.

Non-redeemable GICs, on the other hand, lock in your funds for the full term. You typically cannot withdraw your money before maturity without penalties or may not be able to withdraw it at all. In exchange for this lack of flexibility, non-redeemable GICs usually offer higher interest rates and represent some of the best GIC rates in Canada.

4. Market-linked GICs

A market-linked GIC is a type of GIC that offers returns based on the performance of a stock market index, while still guaranteeing your initial investment. These GICs function as a hybrid product: they combine the security of a traditional GIC with the potential for higher returns tied to the market. Your principal is protected, but the interest you earn depends on how the market performs within a set range. Unlike traditional GICs, market-linked GICs are subject to market volatility, meaning your returns can vary and may be lower than expected if the market underperforms.

5. Foreign currency GICs

A foreign currency GIC is a type of GIC that is held in a currency other than Canadian dollars, most commonly U.S. dollars (USD GICs). These GICs can help diversify your savings and may appeal to investors who want exposure to another currency. For example, USD GICs allow you to earn interest in U.S. dollars, which could increase your overall return if the U.S. dollar strengthens against the Canadian dollar.

However, foreign currency GICs also come with exchange rate risk, meaning changes in the currency’s value can impact your return when converting your funds back to Canadian dollars.

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?

GICs in Canada are insured by the Canada Deposit Insurance Corporation (CDIC) when they are issued by member banks. CDIC is a federal Crown corporation backed by the Government of Canada that protects eligible deposits, including GICs as well as chequing and savings accounts. Coverage is automatic and free, so you don’t need to apply or pay for it.

CDIC insurance covers up to $100,000 per insured category, per member institution, protecting your money in the unlikely event that your bank fails. Since CDIC was founded in 1967, no depositor has lost insured funds. More than 80 financial institutions are CDIC members, including Canada’s big five banks as well as online banks 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 strategy that involves dividing your investment into multiple GICs with different maturity dates. This allows you to access a portion of your money at regular intervals while still benefiting from higher interest rates on longer-term GICs.

As each GIC matures, you can reinvest it at the current GIC rate. This helps you avoid locking in all of your money at one rate and gives you the flexibility to benefit if interest rates rise over time.

Also read: How to make the most of rising GIC rates

Alternatives to GICs for investing

GICs are a great savings vehicle if you are looking to invest your money at no risk. With many factors having an impact on Canada’s economy and cost of living, GICs offer low but secure returns on your savings. However, depending on your risk profile and whether you would be needing the funds you want to deposit sooner than anticipated, there may be other investment products better suited for you.

High-interest savings accounts

Similar to a GIC, a high-interest savings account is a safe investment vehicle where you deposit your cash in a bank account that pays interest with no risk of losing any money. Unlike GICs, however, high-interest savings accounts let you access your money at any point with no restrictions on withdrawals, which makes them great for storing away an emergency fund or general short-term savings. You can compare some of Canada's best high-interest savings accounts using our comparison tool.

Robo-advisors

A robo-advisor can be a great option for investors who are comfortable with taking some financial risk for higher potential returns but also don’t know how (or want) to manage their own portfolio. With a robo-advisor, you won’t have to do any of the work or pay high fees, as portfolios are managed, rebalanced, and maintained in an automated fashion without active managers. You can browse our list of the best robo-advisors in Canada to find the right option for your financial needs.

Online brokerage

An online brokerage is on the opposite end of the investing spectrum compared to GICs. A digital trading platform for the DIY investor who wants to buy and sell shares of individual stocks and ETFs, an online brokerage is for investors who are comfortable with taking investing into their own hands and those with longer-term investment horizons.

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