Best GIC Rates in Canada For 2024

Guaranteed Investment Certificates (GICs) are a secure way to invest your money and earn a guaranteed rate of return. They are a secured, low-risk investment product that earns interest over a set time. 

If you are tired of earning dismal returns on your savings and are ready to watch your money grow at a faster pace, GICs are the ideal options for you. With guaranteed returns and low risk, they are a smart choice for anyone looking to grow their wealth. 

However, with so many options available in Canada, deciding which GICs offer the best returns can be overwhelming. That’s why we’ve done the research and compiled a list of the best GIC rates in Canada, so you can sit back, relax, and watch your savings grow. 

Don’t let your hard-earned money sit idle in a low-interest savings account. Read on to discover the best GIC rates Canada offers and start earning the returns you deserve!

The Best GIC Rates in Canada for 2024

GIC rates are usually based on the type and term. Most of the best GIC rates in Canada are not from the traditional big banks in Canada. They are primarily available from independent online banks and credit unions.

To make your choice, pay attention to the type of GIC, the length of the term, registered or non-registered GIC, and its interest rates.

The Best 1-year GICs in Canada

1. WealthONE Bank of Canada

• Term Length: 1 year
• Interest Rate: 5.35% 
• Minimum Deposit: $1,000
• Insurance: CDIC

WealthOne Bank of Canada is a Canadian Schedule 1 bank. It has two offices in Vancouver and Toronto, where it serves Canadians, including newcomers, and offers online banking services.

The bank also offers a mobile app and competitive interest rates. Its non-redeemable GICs offer 6-month to 5-year terms and can be included in your registered and non-registered accounts.

WealthONE Bank of Canada GICs are fixed-term and non-redeemable prior to the Maturity Date. It charges an early redemption fee of $20.00 plus foregone interest.

2. Peoples Trust

• Term Length: 1 year
• Interest Rate: 5.35%
• Minimum Deposit: $1,000
• Insurance: CDIC

Peoples Trust is a division of Peoples Group. Based in Vancouver, British Columbia, it offers mortgages, GICs, credit cards, and commercial loans in Canada.

When investing in Peoples Trust GICs, you can expect the best. Their GIC rates are one of the best in Canada.

They do not charge any setup or membership fees, service fees, or transfer fees. Eligible deposits are secured and guaranteed by CDIC insurance coverage.

3. Oaken Financial

• Term Length: 1 year
• Interest Rate: 5.35%
• Minimum Deposit: $1,000
• Insurance: CDIC

Oaken Financial is an online banking institution owned and operated by Canada’s largest independent trust, Home Trust.

Oaken Financial offers some of the highest saving rates in Canada. They help you make the most of your hard-earned money.

Each deposit is available through either a Home Trust Company or a Home Bank. Both are separate Canadian Deposit Insurance Corporation (CIDC) members, meaning CIDC covers all Oaken GICs up to applicable limits.

4. Motive Financial

• Term Length: 1 year
• Interest Rate: 5.40%
• Minimum Deposit: $1,000
• Insurance: CDIC

Motive Financial is an online banking division of Canadian Western Bank and offers GICs, registered plans, chequing and savings accounts.

Its GICs offer high fixed interest rates, allowing you to receive annual interest payments or compound them until maturity. If you are above 57 years of age, you can receive monthly interest payments into your Motive Savings account from GICs with a term of at least 12 months.

The Best 3-Year GICs in Canada

1. WealthONE Bank of Canada

• Term Length: 3 years
• Interest Rate: 4.85%
• Minimum Deposit: $1,000
• Insurance: CDIC

WealthOne Bank of Canada, a Schedule 1 Canadian bank, operates from its offices in Vancouver and Toronto to serve Canadians and newcomers. The bank provides online banking services and a mobile app, offering convenience to its customers. 

Additionally, the bank provides competitive interest rates and offers non-redeemable GICs with terms ranging from 6 months to 5 years, which can be included in registered or non-registered accounts.

It’s important to note that WealthOne Bank of Canada’s GICs are fixed-term and non-redeemable before the Maturity Date. The bank charges a $20.00 fee and foregone interest if an early redemption is necessary.

2. AcceleRate Financial

• Term Length: 3 years
• Interest Rate: 4.85%
• Minimum Deposit: $1,000
• Insurance: Deposit Guarantee Corporation of Manitoba.

AcceleRate Financial, an online division of Manitoba’s Access Credit Union, offers GICs, savings accounts, TFSAs, RRSPs, and RRIFs.

Its GICs are available in one to seven-year terms and can be included in registered plans. There is no monthly service fee and no deposit fee when you deposit funds to your AcceleRate GIC.

You can choose to compound interest or receive them annually in your AcceleRate Savings Account.

3. Achieva Financial

• Term Length: 3 years
• Interest Rate: 4.70%
• Minimum Deposit: $1,000
• Insurance: Deposit Guarantee Corporation of Manitoba.

Achieva Financial, an online division of Manitoba’s Cambrian Credit Union, offers GICs, savings accounts, TFSAs, RRSPs, and RRIFs. Its GICs are available in one to five-year terms and can be included in registered plans.

Achieva Financial lets you easily renew your GIC online and compound your interest over the term length or have it paid annually to your Daily Interest Savings Account.

4. Peoples Trust

• Term Length: 3 years
• Interest Rate: 4.65%
• Minimum Deposit: $1,000
• Insurance: CDIC

Peoples Trust, a division of Peoples Group, is located in Vancouver, British Columbia, and provides mortgages, GICs, credit cards, and commercial loans throughout Canada. 

When investing in Peoples Trust GICs, customers can anticipate outstanding rates, among the best in Canada. 

The bank does not impose fees for setting up or maintaining accounts, nor does it charge for services or transfers. Additionally, eligible deposits are secured and protected by CDIC insurance coverage.

5. Hubert’s Happy Savings

• Term Length: 3 years
• Interest Rate: 4.70%
• Minimum Deposit: $1,000
• Insurance: Deposit Guarantee Corporation of Manitoba.

Hubert Financial, the online division of Sunova Credit Union, offers a high-interest savings account, registered plans, credit cards, term deposits, and VirtualWealth investing.

Its high-interest savings deposits are available in one to five-year terms. The 1-year tems are redeemable quarterly, and the two to five-year terms are non-redeemable.

The Best 5-Year GICs in Canada

1. EQ Bank

• Term Length: 5 years
• Interest Rate: 5.15%
• Minimum Deposit: $1,00
• Insurance: CDIC

EQ Bank is one of Canada’s most popular online banks, offering a no-fee banking system. CDIC insures it through its parent bank, Equitable Bank.

EQ Bank offers competitive GIC rates to help maximise your earnings and manage your growing portfolio. EQ Bank GICs are available as both registered and non-registered investments. Its Savings Plus account and GICs offer Canada’s best 5-year GIC rates.

To invest in EQ Bank GICs, you must open a Savings Plus account with a no-banking fees system, free day-to-day transactions, and unlimited Interac e-Transfers.

21. Hubert Financial

• Term Length: 5 years
• Interest Rate: 4.50%
• Minimum Deposit: $1,000
• Insurance: Deposit Guarantee Corporation of Manitoba.

Hubert Financial is a Sunova Credit Union Ltd subsidiary, a Manitoba-based credit union. Currently, Hubert Financial offers the highest GIC rates for a 5-year term in Canada.

Hubert Financial is the way to go if you want to save for future education or retirement expenses. Eligible deposits are insured under the Deposit Guarantee Corporation of Manitoba (DGCM).

3. Saven Financial

• Term Length: 5 years
• Interest Rate: 4.80%
• Minimum Deposit: $1,000
• Insurance: FRSAO

Saven Financial is a digital banking platform and a division of FIrstOntario Credit Union. With Saven GICs, you can choose how much you want to invest, the term of your investment (long or short), and how you would like your interest payout (reinvested back in GIC or your saving account).

Eligible deposits at Saven GICs are insured through the Deposit Insurance Reserve Fund, administered by Ontario’s Financial Services Regulatory Authority (FRSA).

4. MAXA Financial

• Term Length: 5 years
• Interest Rate: 4.45%
• Minimum Deposit: $500
• Insurance: Deposit Guarantee Corporation of Manitoba.

MAXA Financial, an operating division of Westoba Credit Union LTD., offers GICs, high-interest savings accounts, TFSAs, RRSPs, and RRIFs.

Its GICs are available in one to five-year terms and can be included in registered plans. You can compound your interest or receive it annually in your MAXA High-Interest Savings Account. At maturity, your GICs automatically roll into your account.

GIC Rates From Canada’s Five Big Banks

Canada’s Five Big Banks offer some of the best GIC rates in Canada. Their rates might not be enticing, but I have compared them below nonetheless.

If you feel like investing in a notable institution with more extensive brand recognition where you are most assured of security for your money, you should check out these major banks.

1. TD Bank

TD Bank’s GIC rates range from 4.75% for non-registered and registered accounts.

Currently, TD Bank has a Special Offer GIC which includes a 100-day term with up to 3.35% in interest earned and an 18-month term with up to 4.60% in interest earned.

With TD Bank GIC, you can choose a term length between 1 and 5 years and get cashable and non-cashable, market-growth, and U.S. Dollar Option GICs.

You can also choose between simple or compound interest rates when focusing on their non-redeemable options.

2. Scotiabank

Scotiabank offers GIC rates from 4.70%. You can choose between compounded annually or semi-annually or get paid monthly.

However, each has a slightly different GIC rate, with an annual compounding rate at the top. There is a minimum investment of $500 if you choose annual or semi-annual, and if you choose to receive monthly interest, then the minimum investment is raised to $5,000.

3. CIBC

CIBC’s GIC rates go up from 4.25%. Their long-term GIC rates are only available after a minimum deposit of $1,000. You can only receive monthly interest when you invest $5,000.

CIBC offers different types of GICs, from CIBC Bonus GIC, EasyBuilder GIC, Flexible GIC, and Market Linked GICs to Variable Rate GIC.

4. RBC

Royal Bank of Canada’s GIC rates start from 3.00% and mostly come with a minimum investment ranging from $500 to $1,000.

RBC offers several types of GICs. They have the Guaranteed-Return GIC, which includes the Non-redeemable GIC, Redeemable GIC, One-Year GIC, RateAdvantage GIC, and lots more.

In addition to these, RBC also offers market-linked GIC, interest-linked GIC, and registered options. When you invest in GIC for a length of 1 year or more, you have the option of receiving monthly payouts. However, your rates will be lower with this option.

5. Bank of Montreal

BMO offers attractive GIC rates starting from 4.25% for a minimum investment of $1,000. They offer the flexibility of choosing from several payment options and terms. They also have several types of GIC, including cashable, non-cashable, progressive, income-generating, and U.S. Dollar options.

BMO partners with Air Miles and allows you to earn one mile monthly for every $1,000 you invest in GIC.

What are GICs?

GICs, or Guaranteed Investment Certificates, are a type of investment offered by financial institutions such as banks, credit unions, and trust companies. GICs provide a guaranteed rate of return over a fixed period of time, which can range from a few months to several years.

When you invest in a GIC, you lend your money to the financial institution for the term of the GIC. In exchange for this loan, the institution guarantees a fixed interest rate on your investment, typically higher than the interest rate offered on a savings account. At the end of the term, you receive the principal amount you invested plus the interest earned.

GICs are considered a low-risk investment as they are protected by deposit insurance in Canada (up to $100,000 per account per institution). However, GICs may not offer high returns compared to other investments, such as stocks or mutual funds.

GICs can be a good option for those looking for a low-risk investment with a guaranteed rate of return. It’s important to compare rates and terms from different financial institutions to find the best GIC that meets your investment goals.

How to Buy GICs in Canada

Once you have decided to invest your funds in GIC, you will find that investing in GIC is straightforward. Follow the steps below and buy your GIC in Canada.

1. Decide How Much Funds You Want To Invest

Make up your mind on how much you can put away without looking back. Most GICs in Canada will tie up your funds for the term specified. However, if you need money sooner than the specified terms, opt for redeemable or cashable GIC.

2. Choose a Type Of Interest Rate

Different types of GICs have varying interest rates. If you want a specific interest rate for the whole term of the GIC, then you should go for fixed GIC rates. However, if you’re confident in the prospect of changing interest rates, it might be better to go with index-linked or market-linked GIC

3. Do Your Research

In this article, I have listed the best GIC rates in Canada; choose which GIC rates suit you the most. Compare and look for the most competitive GIC rates. You can talk to different banks and financial institutions before you commit to any decision.

4. Choose a Financial Institution and GIC

When you have chosen the type of GIC that suits you better, select the provider. Although the big banks have enormous brand recognition, their rates are less attractive than some online banks we mentioned.

In addition, some trading platforms in Canada, like Qtrade, offer GICs to Canadians at competitive interest rates. You may decide to buy your GICs from Qtrade.

Benefits and Downsides of a GIC

Here is a brief overview of the pros and cons of GICs to help you make an informed decision:

Pros

• Since GICs aren’t redeemable, your savings will be locked in, and you will be forced to let them grow.
• As you know what you’re getting back at the start, your return won’t decrease during the term as rates are usually guaranteed.
• The CDIC or its equivalent protects deposits, so you know that at the very least, you’ll get your deposit back if things go wrong.

Cons

• Even though cashable GICs allow early withdrawals, their rate tends to be lower than non-cashable GICs.
• You won’t see a lot of returns with a GIC, as it is a low-risk option
• If something urgently arises and you need your money right away, you may be hit with a penalty for early withdrawals or may not be able to receive it at all
• Currently, you can get more liquidity by using GICs, as they have lower interest rates than high-interest saving accounts.

What are the Types of GICs?

There are several different kinds of GICs, each with unique features. Let’s look at the common types and see how they work:

1. Redeemable GICs

Redeemable GICs are investment products that can be redeemed before maturity. This can provide temporary cash flow relief and means a loss of interest income. However, you may have to pay an early redemption penalty or other fees for redeeming your product.

These products offer low interest rates, relatively short terms, and no additional features. Many investors use redeemable GICs for short-term financial planning purposes.

2. Non-redeemable GICs

A non-redeemable GIC is a guaranteed investment contract that cannot be redeemed before the end of the term without receiving a penalty as outlined in the agreement.

This type of GIC increases in value over time. It is best suited to investors with a longer investment time frame looking to maximize security and return on their investment at maturity.

3. Cashable GICs

Cashable GICs are one of the most popular forms of GICs. They are usually available for terms as short as one year and are free to cash out after 30 to 90 days. You can also earn a lower return than what a regular GIC offers.

Cashable GICs also offer added flexibility. They are more liquid than other GICs because they can be withdrawn before the term is up without penalty.

4. Registered GICs

A registered GIC is an investment with greater growth potential than a fixed-term deposit account. It lets you earn tax-free interest. This type of GIC is beneficial when you earn interest income while remaining in a registered account such as an RRSP or TFSA.

However, depending on the type of account you choose, there are annual limits to the amount you can put into these accounts.

5. Non-Registered GICs

Some GICs are not held in a registered account. Some people prefer to leave their investments outside of a registered plan. This can sometimes make sense, but remember that the income paid on these GICs is taxable.

However, non-registered GICs offer flexibility, competitive interest rates, and no limits on how much money you can invest. You can choose any dollar amount that works for your needs without maximum investment limits.

6. Foreign Currency GICs

These GICs are not in Canadian dollars and are often in US dollars. They are ideal for anyone who travels or frequently works outside Canada and wants to even out their currency exposure.

Foreign currency GICs are a simple and affordable way to invest in foreign currency. You can earn an interest rate on the Canadian dollar equivalent of your investment.

However, you should remember that you may lose your gains if the institution fails since foreign currency GICs are not CDIC-insured.

With a Foreign Currency GIC, you can shield your money from exchange rate fluctuations for a set period, helping to protect against market risk if the currency drops in value.

7. Market-Linked GICs

In this GIC, the performance is determined by a specific market, which guarantees only your principal deposit.

Market-linked GICs provide you with a guaranteed return linked to the performance of a financial index. If the performance of a specified market falls below the minimum return, your deposit will be returned.

This combination of a GIC and a stock market investment may appeal to investors looking for greater rewards with tremendous risk.

How are GIC Rates Calculated?

GICs have different payment terms depending on the issuer and the product. GICs can pay interest on a monthly, six-month, yearly, or predetermined/anniversary basis. Learn how compound interest works on the GIC you’re considering and the payout schedule. Banks pay interest only on the initial principal with simple interest.

For example, if you invested $200,000 into a two-year GIC with a 1.25% interest rate, you would get $2,500 every year in interest. Consequently, the interest payout will be $5,000 at the end of year two.

The bank pays interest on the original principal and the interest gained at each interval using compound interest. Undoubtedly, compound interest pays the most, but be careful about the payout schedule.

Are GICs Worth It?

GICs can be worth it for some investors, depending on their financial goals and risk tolerance. Though GICs do not provide high returns compared to other available investment options, it is still one of the safest investments.

GICs can be a good option for those who prioritize the preservation of their capital and are willing to forgo potential higher returns in exchange for a guaranteed rate of return.

GICs can also be a good choice for those with a short-term savings goal and who don’t want to risk losing money in the stock market. They are also an excellent choice if you need to make savings you wouldn’t need for a while. GICs are low-risk and low-reward investment options.

Final Thoughts on the Best GIC Rates Canada

Finding the best GIC rates in Canada requires careful consideration of your financial goals and risk tolerance. 

While GICs can provide a reliable source of income and capital preservation, they may not be suitable for all investors. It’s important to shop around and compare rates from different financial institutions to ensure you get the best possible investment return. 

By researching and seeking a financial professional’s advice, you can make an informed decision and find the best GIC rates that meet your specific needs.

FAQs on the Best GIC Rates Canada

Are GICs taxable?

Yes. You will pay taxes on any interest income earned if your GIC isn’t held in a tax-sheltered account like the TFSA or the RRSP. Using the marginal tax rate, the income is taxed like all other regular income,

Can you lose money in a GIC?

No. GICs are guaranteed investments. You are assured of receiving your invested principal and a certain percentage of interest.

How do I find a good GIC rate?

Getting a reasonable GIC rate depends on how long you want to invest, how much you are willing to invest, and what kind of investment you are going for.