GIC comparison tool

Use the comparison tool below to find out the best and latest GIC rates in Canada. Additionally, use filters to evaluate your estimated return based on the size of your balance.

Canada’s highest GIC interest rates

Banks, credit unions, trust companies and discount brokerage firms all offer GICs. Below, you’ll find the best rates available from a variety of financial institutions, including credit unions and Canada’s Big Six banks. Rates listed are for non-redeemable GICs held in non-registered accounts, which are the most popular type of GICs in Canada. Members of our editorial team review these rates daily, so you can rest assured they’re accurate.

GIC interest rate From Canada’s Big Six Banks

Rates listed apply to non-redeemable GICs held in non-registered accounts. Rates are verified and updated every business day.

What is a GIC?

A Guaranteed Investment Certificate (GIC) is a loan you get from a bank or other financial institution. When you purchase a GIC, you agree to a specific term (a period of time) during which your deposit will remain in the bank. In return, the bank offers you a guaranteed interest rate. You can typically invest in a GIC for as little as $500, and there are usually no fees to purchase a GIC. Some types of GICs allow you to withdraw some or all of your funds early.

GICs must be purchased within the account. There are several types of accounts to choose from, including non-registered accounts (such as cash or margin accounts) and registered accounts such as RRSP, TFSA, First Home Savings Account (FHSA), Registered Education Savings Plan (RESP) or Registered Retirement Income Fund (RRIF). Investments in these accounts can have different tax consequences, so if you are unsure which account is right for you, consider consulting an advisor or your financial institution. Once you open an account, purchasing a GIC is easy.

Types of GICs offered in Canada

There are many different types of GICs, but the following are the most common ones.

Advantages and Disadvantages of GIC

advantage

• GICs are very low risk because your principal investment is guaranteed to be repaid.
• When your GIC matures, you’ll receive a guaranteed interest rate—no need to worry about market fluctuations.
• GICs are eligible for coverage by the Canada Deposit Insurance Corporation (CDIC) if purchased at a CDIC member institution. This means that even if the financial institution goes bankrupt, your principal is safe.
• You can hold GICs in registered and non-registered investment accounts.

shortcoming

• Your funds will be tied up until the GIC’s maturity date, unless you cash out early (possibly paying a penalty) or you choose a redeemable GIC (which may have a lower interest rate than a non-redeemable GIC).
• The interest rate you earn on a GIC may not be enough to keep up with inflation. According to the Consumer Price Index, Canada’s current inflation rate is 2.0%.

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Are GICs safe?

GICs are popular investments because they offer guaranteed returns. The financial institution that sold the GIC is legally obligated to return the initial investment plus agreed interest. If the agency fails, additional protections come into play. Many GICs in Canada (including foreign currency GICs) are insured by the Canada Deposit Insurance Corporation (CDIC) up to a maximum of $100,000. Provincial insurance companies also offer coverage, but the limits vary.

Video: How Bank of Canada interest rates affect you

How to buy a GIC

GICs are available from banks and other providers. But before contacting a GIC issuer, it’s important to decide how much you want to invest. Minimum investment amounts range from $100 to $5,000, depending on the institution. Therefore, the amount you want to invest will narrow down your options. Then, shop around for variable or fixed rate options and decide how accessible and flexible you want your funds to be. Finally, once you understand your requirements, contact the financial institution of your choice to begin the purchasing process. Here’s what you need to know about the different ways to buy a GIC.

• Online/Phone: You either have an existing account with a financial institution or you must submit an application and identification documents to verify your identity, including your Social Security Number (SIN). After the account is established and linked to your primary source of funds (such as a checking account), the principal investment is withdrawn and a GIC is issued. The rate table above can help you find some of the best options in Canada right now.

• personally: You can go to a branch to buy GIC. Again, if you already have a profile with a financial institution, the process will be easier, but if not, you will need to bring ID (including your SIN) to your appointment, complete the application and follow the institution’s process for funding and issuance Your GIC.

• Deposit Broker: Deposit brokerage companies help you do your research and understand the best options in today’s market. They also know which GIC issuers qualify for CDIC coverage to ensure your investments are protected in the event of bankruptcy. They work with multiple banks, so you can drill down into various rates and terms to find the option that best suits your needs. Brokers are paid by financial institutions. Consumers should always pay directly to the financial institution and not to the broker. Because brokers often bring multiple consumers’ investments to banks, those consumers are sometimes able to benefit from better interest rates—similar to the benefits of shopping in bulk.

GIC ladder

GIC tiering is when you buy GICs that mature at different times, giving you a steady stream of income. For example, if you purchase a one-year, two-year, and three-year GIC on the same day, you will receive payments at regular intervals (one, two, and three years after the purchase date).

Stepped GIC has the following benefits:

• Laddering gives you more convenient access to your funds without incurring any penalties, as you have the option to reconsider investing your funds each time the GIC expires.
• When you invest in GICs with a certain maturity date, your interest rate risk is reduced because you are not locking up all your money for the same period.
• Purchasing multiple laddered GICs during periods of high interest rates can effectively “lock in” competitive interest rates for longer.
• If done effectively, laddering can provide a regular income.

GIC withdrawal penalties

As with most fixed income securities, there are often steep penalties for withdrawing funds early (that is, before maturity).

Investors who may need to withdraw their funds before maturity should purchase a cashable or redeemable GIC, which allows you to cash out your investment at any time at no additional cost. Keep in mind that cashable GICs typically pay much lower interest.

Registered and non-registered GICs

GICs can be held in non-registered and registered accounts.

• Non-registered accounts are savings or investment accounts that allow you to hold assets (without the tax benefits of registered accounts) and include cash accounts, margin accounts and high-interest savings accounts.
• Registered accounts include TFSA, RRSP, FHSA, RESP and RRIF, allowing your investments to grow tax-free. The government encourages Canadians to save more of their income through incentives in these accounts.

The best time to buy GICs

The best time to buy a GIC is when you’re saving for a certain goal, such as tuition, a down payment, or travel. But investing in GICs can also be a good thing when you’re risk-averse. For example, you might consider GICs as a way to balance your investment portfolio or generate some passive income in retirement, or if you need to take time off to support your family. While interest rates on GICs tend not to be the highest of all investment vehicles available to Canadians, they do offer a low-risk way to store money while earning some interest.

If you’re considering adding GICs to your portfolio, there are some key numbers you need to pay attention to. The GIC interest rate itself is a good starting point. Generally speaking, the higher the interest rate, the more attractive the product. It’s also worth paying attention to the rate of inflation or deflation you might expect during this period to determine whether that factor might eat into your profits or boost them. If you find that the numbers hold, GICs can be an excellent risk-free investment for a period of time.

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