Unpredictable stock markets and record-high inflation rates lead many Canadians toward low-risk investments. As the Bank of Canada aggressively hikes interest rates, GICs have emerged as a trendy safe haven. These investments reach 6% in some cases, hovering near 10-year highs.
However, sourcing rates can take hours. How do you know where to find Canada’s best GIC rates? Don’t worry, because we’ve done it for you. This article analyzes the highest GIC rates currently advertised by leading banks and credit unions. We’ve compared the best rates across various term lengths.
Best GIC Rates In Canada For Registered Accounts: Short-Term
Short-term GICs are generally less than 12 to 15 months. They’re commonly used by investors looking to park cash for a short duration to avoid the effects of inflation. While you’ll get your money back faster, the interest rates are generally lower than their long-term counterparts.
Here are the best short-term GIC rates for registered accounts such as RSSP, RSP, TFSA and FHSAs:
| Bank/Financial Institution | Rate | Term | Minimum deposit | Types of accounts |
| Tangerine | 1.40% – 5.20% | 90 days – 1 year | $1 | RIF, RSP, TFSA |
| EQ Bank | 4.00% – 5.25% | 3 months – 15 months | $100 | TFSA, RSP, FHSA |
| TD | 2.25% – 5.00% | 30 days – 18 months | $500 | RSP, RIF, RESP, TFSA, FHSA |
Tangerine GIC Rates
Tangerine’s short-term GICs shine with their low minimum deposit. The online-only bank offers a variety of registered GICs including RSPs, RIFs and TFSAs. Moreover, Tangerine cuts fees as an online bank, resulting in no account fees or service charges.
Here are the rates you’ll find for short-term registered GICs at Tangerine
| Term | GIC Interest Rate |
| 90 Day | 1.40% |
| 180 Day | 4.90% |
| 270 Day | 5.20% |
| 1 Year | 5.15% |
EQ Bank GIC Rates
EQ Bank is famous for offering low-fee products with lucrative interest rates. While their short-term GICs remain competitive, their sweet spot falls around one year.
EQ Bank offers a broad selection of registered GICs. You can hold their GICs in an RSP Savings Account, FSHA, or TFSA.
| Term | GIC Interest Rate |
| 3 Month | 4.00% |
| 6 Month | 4.75% |
| 9 Month | 5.00% |
| 1 Year | 5.25% |
TD Bank GIC Rates
TD’s has both cashable and non-cashable short-term GICs. Cashable GICs mean you can withdraw funds early without penalty. Here, we’ll be looking at non-cashable GIC rates for registered accounts including TFSAs, FHSAs, RSP, RIF and RESP.
| Term | GIC Interest Rate |
| 30 days | 2.25% |
| 120 days | 3.00% |
| 14-months | 5.00% |
Best GIC Rates In Canada Long-Term
Long-term GICs generally range between one and five years. They commonly have one-year increments, such as one-year, two-year, and so forth. While typically offering a higher interest rate, your money is locked up longer. Since early withdrawals can result in penalties, some investors opt for a cashable long-term GIC. Another approach is a GIC laddering strategy for blending flexibility with higher interest rates.
| Bank/Financial Institution | Rate | Term | Minimum deposit |
| Oaken Financial | 4.35% – 5.15% | 1 – 5 Years | $1,000 |
| Wealth One | 4.70% – 5.20% | 1 – 5 Years | $1,000 |
| Outlook Financial | 4.70% – 5.30% | 1 – 5 Years | $1,000 |
| Tangerine | 3.55% – 5.15% | 1 – 5 Years | $1 |
Oaken Financial GIC Rates
Oaken Financial is owned by Home Trust. They offer long-term GICs from 1 to 5 years, with interest rates as high as 5.15%.
| Term | GIC Interest Rate |
| 1 Year | 5.15% |
| 18 Month | 5.05% |
| 2 Year | 5.00% |
| 3 Year | 4.55% |
| 4 Year | 4.40% |
| 5 Year | 4.35% |
WealthONE GIC Rates
WealthONE offers some of Canada’s strongest long-term GIC options. Their interest rate peaks at 5.20% for the 1-year option. The downside is high service fees for e-transfers, account closure, and certain withdrawals.
The interest rates below apply to their registered GICs held in TFSAs and RRSPs.
| Term | GIC Interest Rate |
| 1 Year | 5.20% |
| 18 Month | 5.00% |
| 2 Year | 5.00% |
| 3 Year | 4.80% |
| 4 Year | 4.80% |
| 5 Year | 4.70% |
Outlook Financial GIC Rates
Outlook Financial is owned by Assiniboine Credit Union. Their long-term GIC rates are competitive, reaching 5.25% for a 2-year term. You’ll need a minimum deposit of $1,000, and GICs are non-redeemable.
| Term | GIC Interest Rate |
| 1 Year | 5.30% |
| 2 Year | 5.25% |
| 3 Year | 4.90% |
| 4 Year | 4.80% |
| 5 Year | 4.70% |
Tangerine GIC Rates
Tangerine provides a variety of long-term GICs in Canada, with terms extending from 1 to 5 years and interest rates starting at 5.15% for a 1-year term. The minimum deposit is only $1, making incremental investment easy, and there are no extra fees.
| Term | GIC Interest Rate |
| 1 Year | 5.15% |
| 1.5 Year | 4.80% |
| 2 Year | 4.10% |
| 3 Year | 4.00% |
| 4 Year | 3.80% |
| 5 Year | 3.75% |
Best Big Bank GICs
The following rates are for non-cashable registered GICs such as a TFSA, RRSP, FHSA, and RIF.
| Financial Institution | 6 Month GIC | 1 Year GIC Rate | 2 Year GIC Rate | 5 Year GIC Rate |
| BMO Bank of Montreal | – | 4.75% | 4.6% | 4.25% |
| CIBC | – | 4.15% | 3.75% | 3.75% |
| RBC | Up to 3.55% | Up to 4.00% | Up to 4.00% | Up to 3.95% |
| Scotiabank | 3.25% | 4.75% | 4.10% | 3.95% |
| TD Bank | 3.25% | 5.00% | 4.60% | 4.25% |
| National Bank of Canada | 1.50% | 4.65% | 4.30% | 4.00% |
| Laurentian Bank of Canada | 3.50% | 4.90% | 4.75% | 4.50% |
Do note that not all rates posted apply to all registered accounts.
Best GICs Offered By Credit Unions And Other Financial Institutions
| Financial Institution | 6 Month GIC | 1 Year GIC Rate | 2 Year GIC Rate | 5 Year GIC Rate |
| Alterna Bank | – | 4.95% | 4.65% | 4.20% |
| Meridian Bank | – | 5.00% | 4.60% | 4.25% |
| Manulife Bank | 2.00% | 4.50% | 4.45% | 4.33% |
| Canadian Tire Bank | – | 4.50% | 4.10% | 3.80% |
| Canadian Western Bank | – | 4.80% | 4.45% | 4.00% |
Best Online-Only Bank GICs
| Financial Institution | 6 Month GIC | 1 Year GIC Rate | 2 Year GIC Rate | 5 Year GIC Rate |
| Coast Capital Savings | 3.20% | 5.00% | 4.60% | 4.35% |
| EQ Bank | 4.75% | 5.25% | 4.95% | 4.45% |
| Oaken Financial | – | 5.15% | 5.00% | 4.35% |
| Outlook Financial | – | 5.30% | 5.25% | 4.70% |
| Simplii Financial | – | 4.889% | 4.266% | 4.17% |
| Tangerine Bank | 4.90% | 5.15% | 4.10% | 3.75% |
| VersaBank | – | 5.20% | 4.91% | 4.39% |
| WealthONE | – | 5.20% | 5.00% | 4.70% |
How Much Will You Earn If You Invest In A 1-Year GIC
Suppose you decide to invest $10,000 into a 1-year non-redeemable GIC. This means you’ll get your deposit and interest back after one year. If the interest rate is 5%, you’d earn $511. To calculate our example above, let’s use the following formula:
Amount You Will Receive= Initial GIC Investment x (1+Interest Rate/12) ^(# of months)
= 10,000 x (1+0.5/12)^12
~ $10,511
After a year when your GIC matures, you will receive your initial $10,000 back, plus the $511 in interest. Regardless of market fluctuations, your 5% return over the year is secure.
If your GIC is non-redeemable, your funds are locked in for the year. Withdrawing early can forfeit your interest and result in penalties.
Types Of Accounts You Can Hold A GIC
You can use two categories of accounts to invest in GICs. The primary difference is your taxation structure. Registered GICs offer tax benefits but have more restrictions. In contrast, non-registered GICs maximize flexibility, but you’ll have to pay annual taxes on interest.
1. Registered
Registered GICs are held in a tax-sheltered account. Primarily, you can hold a GIC in an RRSP or TFSA. However, some institutions are beginning to offer FHSA GICs.
It’s critical to understand that each type of registered account has withdrawal and contribution limits. You’ll need to research if the specific account aligns with your investment objectives.
2. Non-Registered
Conversely, non-registered GICs have fewer restrictions. The caveat is that any interest earned will be taxed annually at your marginal tax rate. This can significantly reduce your rate of return. As such, investors commonly use non-registered GICs after maximizing registered account contributions.
Types Of GICs
1. Cashable GICs
Cashable GICs, also known as redeemable GICs, offer more flexibility. Investors can withdraw funds without penalties after an initial lockup window. While redemptions aren’t penalized, you won’t earn any remaining interest owed. Cashable GICs also tend to have lower interest rates to compensate for the flexibility.
2. Non-Cashable GICs
Non-cashable GICs are the standard option. You’ll receive a higher interest rate but have less withdrawal flexibility. This is because investors are penalized for early withdrawals. In most cases, you’ll lose any interest earned for withdrawing before maturity.
3. Market-Linked GICs
Market-linked GICs align their interest rates to stock market benchmarks like the TSX or S&P 500. They’re commonly offered by the big five banks and offer a minimum and maximum return range. Your GIC rate increases and decreases with the benchmark, unlike a fixed-rate GIC. You can’t lose money with a market-linked GIC as you’re guaranteed a certain range.
4. USD GICs
USD GICs are denominated in US dollars. This means your GIC investment is held in USD and changes with the exchange rate. They are best for investors who believe USD will appreciate or see it as a safer currency than CAD. USD GICs come in various types and term lengths. For example, they can be cashable, non-cashable, or market-linked. They are simply GICs that are held in US dollars.
5. Variable GICS
Variable rate GICs have fluctuating interest rates linked to the financial institution’s prime rate. While similar to a market-linked GIC, variable GICs are benchmarked to a prime rate, rather than a market index. When interest rates increase, a variable rate GIC can outperform a market-linked GIC if the stock market drops. While riskier than fixed-rate GICs, they offer flexibility to benefit from prime rate hikes.
Bottom Line
With GIC rates at elevated levels not seen in years now is a strategic time to leverage these low-risk investments to build a diversified fixed-income portfolio. These investments offer a predictable return, and top options can reach 5%. As market volatility continues, many investors flock to GICs as a safe haven.
