The best 1-year registered GIC rates

The best overall GICs in Canada

Registered vs. non-registered GICs

The difference between a registered vs. non registered GIC is that the interest earned on registered GICs is tax-sheltered. That means you won’t be taxed on the interest earned from your registered GIC because it's held in a registered account. However, you’ll have to stick to your annual contribution limits for registered accounts like TFSAs and RRSPs. On the other hand, interest earned on GICs held in non-registered accounts is taxable. The advantage of non-registered GICs, though, is that you have less restrictions. If you are using a 1-year non-registered GIC to save for a shorter-term goal like a wedding in one year, or paying for tuition, then you can deposit as much as you want without worrying about contribution limits, and you can withdraw the funds at any time without tax penalties. (If you have a non-redeemable GIC, though, you won’t want to cash out the GIC before its maturity.) You’ll have to pay a tax penalty for early withdrawals from certain registered accounts unless you are using them for approved reasons like buying a home. You will be able to withdraw from your TFSA without a tax penalty, though, and you won't lose contribution room from doing so.