The best overall GICs in Canada
What is the best TD GIC rate right now?
The best interest rate for a 1 year non-registered GIC at TD Bank is currently 5.00%. There is a minimum investment of $1,000.
What is a TD Special Offer GIC?
TD Special Offer GICs offer high interest rates for a limited time. The GIC is automatically reinvested at its maturity, too. With cashable Special Offer GICs, you can cash them out at maturity dates.
Natasha Macmillan, Business Unit Director - Everyday Banking
Why choose TD GICs?
TD Bank Group is one of the top 10 North American Banks, servicing 27.5 million customers. When you invest in a TD GIC, you can trust that your money is in good hands.
TD offers a variety of GIC options with different terms and features, allowing you to choose the best option for your financial goals.
Types of TD GICs
TD offers three main types of GICs: Cashable, Non-Cashable, and Market Growth GICs (commonly known as market-linked GICs). TD also offers USD GICs and Special Offer GICs.
Cashable GICs allow you to access your money before the end of the term without penalty. Non-Cashable GICs have a fixed term and penalize for early withdrawals. Market-linked GICs offer a variable interest rate that is tied to the performance of the stock market.
The Best TD GIC Rates in Canada
Here are the best TD GIC rates in Canada today.
1. TD Cashable GICs
TD cashable GICs (also known as redeemable GICs) offer competitive interest rates and also allow you to hold them in various types of registered accounts, unlike some other banks and financial institutions. This option allows you to access your money at any time after 30 days without penalty, making it a flexible option for those who may need their funds before the end of the term.
If you have a short-term goal like paying for a wedding or down payment, a cashable GIC might be the best option for you. But keep in mind the rates offered are lower than non-redeemable GICs, with TD currently offering a 1-year non-redeemable GIC at 5.00% and a 1-year cashable GIC at 3%.
TD also offers a 5-year stepper GIC, which is renewed over four terms for four years in a row. The interest rate will automatically increase after each year when it reaches the annual maturity date, and you can choose to cash out your investment on that date. This option is not offered for FHSAs, but is eligible for TFSAs and RSP, RESPs, or RIFs.
TD 5-year stepper GIC:
Year 1 - 0.50%
Year 2 - 0.65%
Year 3 - 0.85%
Year 4 - 1.15%
Year 5 - 1.25%
2. TD Non-cashable GICs
TD non-cashable (non-redeemable) GICs are good options for secure investments that you want to hold for a set amount of time. They might not make sense if you have a shorter-term goal in mind and will need to cash out your money at an unknown time in the near future. That being said, non-redeemable TD GICs pay competitive rates in the 5% range.
3. TD Market Growth GICs
TD Market Growth GICs offer returns that are tied to the performance of a stock market index.
For example, the TD Canadian Banks GIC has a 3-year term and minimum guaranteed return of 10.00% total. However, it is important to understand10% is not the annual interest rate the GIC pays - it is the total minimum guaranteed return on your investment, and that annual minimum rate works out to 3.2291% per year. While the maximum total return is 25%, if the index performs better than this, you’re losing out on potential returns. If the market performs poorly, you’re guaranteed to receive a 6% total return over three years.
Here are current offers for TD market-linked GICs:
- TD Canadian Banking & Utilities GIC (50% S&P/TSX Bank Index, 50% S&P/TSX Capped Utilities Index): for 3 years, the guaranteed minimum return is 6% and the maximum is 30%. For a 5-year term, 15% and the maximum is 50%
- TD Canadian Banks GIC: for 3 years, the guaranteed minimum return is 10% and the maximum is 25%. For a 5-year term, 20% and the maximum is 35%
- TD U.S. Top 500 GIC: for 3 years, the guaranteed minimum return is 7% and the maximum is 20%. For a 5-year term, 12% and the maximum is 32%
All of the above options are eligible to be held in either a TFSA or non-registered account with a $1,000 minimum investment, or in a RSP, RIF, RESP, FHSA with a $500 minimum investment.
TD Special Offer GICs
TD currently has Special Offer GICs for a limited time on cashable GIC options and U.S.D GIC rates. They offer a 100 day cashable GIC that pays 4% interest, and can be held in non-registered and certain registered accounts. They also offer a 3 year cashable GIC that pays 3.50%.
Another of TD’s Special Offer GICs pays 5% for a 14-month term on a non-redeemable GIC.
How to Invest in TD GICs
Investing in TD GICs is a simple and straightforward process. Existing TD clients can open GICs online. You can also open a GIC over the phone, or in person at a TD branch. To open a GIC, you will need to provide your personal information, including your Social Insurance Number, and make an initial deposit.
The minimum investment amount for TD GICs is either $500 or $1,000. However, some GICs may have a higher minimum investment requirement. If you are choosing a registered GIC, you must have a registered account like an RRSP, TFSA or FHSA to hold the GIC in.
TD offers GIC terms ranging from 30 days to 5 years. Typically, longer the term, the higher the interest rate. However, because of current market conditions, many banks and financial institutions are offering higher rates on shorter term GICs like 1-year GICs. Consider your financial goals and when you will need access to your funds before choosing a term length.
- Also read: When do GICs make sense for investors?
TD GICs are eligible for Canada Deposit Insurance Corporation (CDIC) insurance, which protects your investment up to $100,000 in case of bank failure. This provides an extra layer of security for your investment.
Alternatives to TD GICs
There are several alternatives to TD Bank GICs that you can consider when looking for investment options in Canada. Here are a few popular alternatives:
RBC GICs: Royal Bank of Canada (RBC) offers a wide range of GIC options with competitive interest rates. RBC currently offers 4.90% for a 1-year non-redeemable GIC for a limited time.
Scotiabank GICs: Scotiabank is another major Canadian bank that offers GICs with attractive interest rates. Scotiabank currently offers a 1-year non-redeemable GIC at 4.75%.
CIBC GICs: CIBC currently offers a 1-year non-redeemable GIC at 5.00%.
National Bank GICs: National Bank currently offers a 1-year non-redeemable GIC at 4.65%.
Credit Union GICs: Credit unions are member-owned financial institutions that often offer GICs with competitive rates. They are provincially-insured. Saven Financial currently offers a 1-year non-redeemable GIC that pays 5.45% interest.
Online Banks: Online banks such as EQ Bank and Tangerine offer GICs with competitive rates and convenient online account management. They may have lower overhead costs, allowing them to offer higher interest rates. Plus, EQ Bank GICs and other similar options may have lower minimum investment requirements.
Government Bonds: Government bonds, such as Canada Savings Bonds and Provincial Savings Bonds, are considered low-risk investments. They offer fixed interest rates and are backed by the government. Read more about GIC alternatives.
When considering alternatives to TD Bank GICs, it's important to compare interest rates, term lengths, and features to find the best option for your financial goals. Also take note of things like customer service, convenience, and any added fees or minimum deposits associated with the investment.
TD GICs are a safe and reliable investment option for Canadians looking to grow their savings. With competitive interest rates and a variety of options to choose from, TD GICs are a smart choice for those looking to invest in a low-risk option. Consider your financial goals and the features of each so you can choose the best TD GIC for your needs.
Natasha Macmillan, Business Director of Everyday Banking
With over a decade of experience in the finance industry, Natasha works closely with Canada's top financial institutions - from banks to credit unions - to help Ratehub.ca's 1,200,000 monthly users get matched with the right banking products. read full bio
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