Compare GIC rates

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What are GICs

Guaranteed investment certificates (GICs) are financial products that let Canadians invest their money and earn some guaranteed interest. With a GIC, you invest your money with a financial institution (the “issuer”) for a specific period of time (the “term”), and they'll guarantee you a return of the principal (the initial amount you invested) and interest at a rate specified in your contract.

GICs are a popular method of investing among Canadians for their guaranteed interest. When you purchase a GIC, your funds are insured with CDIC or a provincial insurance organization depending on the financial institution you purchased the GIC from. For example, if you are buying a GIC from one of the big banks, your deposit will be insured up to $100,000 by the CDIC. GICs purchased through credit unions, on the other hand, are provincially insured and the total deposit amount insured will differ depending on the insurance organization.


GIC Terms

GIC terms start in periods as short as thirty days and can go as long as ten years. Due to their low-risk nature, GICs provide higher returns the longer the term is. It is important to note that sometimes financial institutions offer promotional GIC rates which ar eusually higher than their standard rates, which is why it is important to compare all GIC rates offered to Canadians prior to deciding to invest. CDIC insurance covers investments up to $100,000 in terms up to 5-years long. Provincial insurance differs depending on the province. Generally, on non-redeemable GICs (the most popular non-registered GIC type) investors are not permitted to withdraw their deposit until the GIC term is complete without paying an early-withdrawal penalty. You can learn all about GIC basics, GIC terms, and GIC insurance, by visiting our Education Centre.


Best GIC Rates in Canada 2019

Below are all Canadian GIC rates in one table so that you can get a quick glance at who offers the best 1-year GIC rate in Canada right now, as well as how your investment is insured. The table is ranked from highest to lowest. You could also visit our GIC comparison tool if you'd like to filter the results to show Ontario GIC rates only for example, as well as choose other GIC terms and GIC types available to you.

View All GIC Rates in Canada 2019▼

Rate Term Insurance Provider
2.80% 1-Year CDIC Oaken Financial
2.65% 1-Year Provincial Parama Credit Union
2.60% 1-Year Provincial MAXA Financial
2.60% 1-Year Provincial Implicity Financial
2.55% 1-Year CDIC EQ Bank
2.45% 1-Year Provincial Steinbach Credit Union
2.38% 1-Year CDIC Motive Financial
2.35% 1-Year CDIC Alterna Bank
2.25% 1-Year Provincial Innovation Credit Union
2.00% 1-Year CDIC Manulife Bank
1.65% 1-Year CDIC HSBC
1.65% 1-Year CDIC CIBC
1.45% 1-Year CDIC RBC Royal Bank
1.45% 1-Year CDIC Bank of Montreal
1.45% 1-Year CDIC TD Bank
1.40% 1-Year Provincial Innovation Credit Union
1.40% 1-Year CDIC National Bank
0.85% 1-Year CDIC Desjardins
0.50% 1-Year CDIC CIBC

How do GICs work?

A GIC works opposite to the typical lending relationship between financial institutions and their clients. Instead of issuing the customer a loan, the customer grants the loan to the financial institution. The financial institution then returns the investment after the term is complete, with the interest that was earned. Generally, you would be locked into the GIC term (the duration to maturity of your GIC, or the time duration you agree the financial institution will be able to hold your money), but you can also choose a redeemable GIC, which will allow you to pull your funds out before its maturity. Redeemable GICs in general offer lower interest rates compared to non-redeemable, but they are not entirely locked in, and allow investors who are interested in short-term deposits to beat out interest rates.


Is a GIC the right investment for you?

As mentioned above, buying GICs in Canada poses little-to-no risk to the investor, making them an excellent option for Canadians with low risk-tolerance. However, GICs might not be the best option if you need access to your money before the term is complete. For instance, if you need access to your funds, you won’t have access to your investments if they’re locked up in a 5-year GIC. If you are looking to invest your money and have access to it at the same time, a HIgh-Interest Savings Account (HISA) or Tax-Free Savings Account (TFSA) might be a better option for you, especially if you are putting money aside for an emergency fund. On the other hand, if you are comfortable with a little risk, want a higher return, and access to your money, a robo-advisor could be an investing route you might want to consider taking.


Choosing the right GIC type

There are a few different types of GICs that banks and credit unions offer their customers. GIC rates, terms, and conditions can differ from one financial institution to the next. Term deposit lengths vary depending on the institution. Short-term GICs, usually ranging from 30-days to 1 year, typically offer lower rates. For long-term GICs, Canada currently has term deposits ranging from 2 to 10 years in length. You can put your Registered Education Savings Plan (RESP), Registered Retirement Savings Plan (RRSP), or TFSA savings in Registered GICs. Canada permits GIC wealth to grow tax-free, if the investments are registered. Non-registered GICs do not have limits and are taxable at the end of each year. There are also other GIC options, such as Market Linked GICs and US and Foreign Currency GICs. Canada also offers its citizens Market Linked GICs available, which are economy-linked investments made into various stocks and bonds. Rates are not fixed and can change with the market. Buying US and Foreign Currency GICs in Canada allows investors to earn interest on foreign currency. It is an excellent option for investors who want to reap the benefits of the best GIC interest rates before using foreign money.


Use Our GIC Calculator

Use our GIC comparison tool to compare GICs by province, term, and investment amount to see which GIC gets your the highest return.


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