Compare the best BMO GICs

The best overall GICs in Canada

Why choose BMO GICs?

BMO offers a variety of GIC options with different terms and features, allowing you to choose the best option for your financial goals.

Types of BMO GICs

BMO offers three main types of GICs: Cashable, Non-Cashable, and Market Growth GICs (commonly known as market-linked GICs). BMO also offers USD GICs and Special Offer GICs.

Cashable GICs allow you to access your money before the end of the term without penalty. Non-Cashable GICs have a fixed term and penalize for early withdrawals. Market-linked GICs offer a variable interest rate that is tied to the performance of the stock market.

The Best BMO GICs in Canada

Here are the best BMO GICs in Canada today.

1. BMO GIC rates (non-redeemable)

BMO non-cashable (non-redeemable) GICs are good options for secure investments that you want to hold for a set amount of time. They might not make sense if you have a shorter-term goal in mind. That being said, non-redeemable BMO GICs pay competitive rates, especially their Special Offer GICs.

BMO GIC rates, shown below, are competitive. BMO GICs are eligible for both registered and non-registered accounts. The interest is paid annually. You can hold a BMO non-redeemable GIC in a RSP, RESP, RIF, TFSA, FHSA or an RDSP. The minimum investment is $1,000 ($500 for an RESP, and $5,000 if you choose monthly interest payments).

2. BMO cashable GICs

BMO cashable GICs offer competitive interest rates and also allow you to hold them in some types of registered accounts, including an RSP, RESP, TFSA, FHSA, and an RDSP. With cashable GICs, you can access your money at any time after 30 days without penalty, making it a flexible option for those who may need their funds before the end of the term.

If you have a short-term goal like saving for a downpayment in an FHSA, a cashable GIC might be the best option for you. But keep in mind the rates offered for cashable GICs are lower than non-redeemable GICs. Some of BMO’s cashable GICs are eligible to be held in various registered accounts, such as a TFSA, RESP, FHSA, and RDSP.

BMO also offers a RateRiser Plus GIC, which offers rates that increase after each year when the GIC reaches its annual maturity date, and you can choose to cash out your investment on that date. This option is available for several registered accounts. There is also a cashable alternative.

3. BMO Market Growth GICs

BMO Market Growth GICs offer returns that are tied to the performance of the stock market.

For example, the BMO Smart Return GIC has a 4-year term and minimum guaranteed return of 8.00% total. It is important to understand that 8% is not the annual interest rate the GIC pays - it is the total minimum guaranteed return on your investment, and that annual minimum rate works out to 2% per year. While the maximum total return is 32% over four years, if the index performs better than this, you’re losing out on potential returns. If the market performs poorly, you’re guaranteed to receive an 8% total return over four years.

All BMO Market-Linked GICs are eligible to be held in RSP, RESP, RIF, TFSA or FHSA accounts with a $1,000 minimum investment. They are non-redeemable.

How to Invest in BMO GICs

Investing in BMO GICs is a simple and straightforward process. You can open a GIC account online, over the phone, or in person at a BMO branch. To open a GIC account, you will need to provide your personal information, including your Social Insurance Number, and make an initial deposit.

Minimum Investment

The minimum investment amount for BMO GICs is $1,000. However, some GICs like their USD GICs may have a higher minimum investment requirement. If you are choosing a registered GIC, you must have a registered account like an RRSP , TFSA, or FHSA to hold the GIC in.

Other Factors to Consider

When choosing the best BMO GIC rates in Canada, it is important to consider other factors besides the interest rate. Here are a few things to keep in mind:

Term Length

BMO offers GIC terms ranging from 30 days to 5 years. Typically, longer the term, the higher the interest rate. However, because of current market conditions, many banks and financial institutions are offering higher rates on shorter term GICs like 1-year GICs. Consider your financial goals and when you will need access to your funds before choosing a term length.

• Also read: When do GICs make sense for investors?

CDIC Insurance

BMO GICs are eligible for Canada Deposit Insurance Corporation (CDIC) insurance, which protects your investment up to $100,000 in case of bank failure. This provides an extra layer of security for your investment.

Alternatives to BMO GICs

There are several alternatives to BMO GICs that you can consider when looking for investment options in Canada. Here are a few popular alternatives:

• TD GICs: TD GICs offer competitive interest rates, and most of their GICs are available for registered accounts. They also have more cashable GIC options than BMO.
• Scotiabank GICs: Scotiabank is another major Canadian bank that offers GICs with attractive interest rates. 
• CIBC GICs: CIBC offers competitive promotional rates on non-redeemable and cashable GICs. 
• RBC GICs: Royal Bank of Canada (RBC) offers a wide range of GIC options with competitive interest rates and limited-time promotional rates.
• Credit Union GICs: Credit unions are member-owned financial institutions that often offer GICs with competitive rates. They are provincially-insured.
• Online Banks: Online banks such as EQ Bank, Oaken Financial and Tangerine offer GICs with competitive rates and convenient online account management. They may have lower overhead costs, allowing them to offer higher interest rates. Plus, online banks like EQ Bank may have lower minimum investment requirements.
• Government Bonds: Government bonds, such as Canada Savings Bonds and Provincial Savings Bonds, are considered low-risk investments. They offer fixed interest rates and are backed by the government. Read more about GIC alternatives.

When considering alternatives to BMO Bank GICs, it's important to compare interest rates, terms, and features to find the best option for your financial goals. Additionally, consider factors such as customer service, convenience, and any additional fees or requirements associated with the investment.

About BMO Bank of Montreal

BMO Financial Group is a provider of diversified financial services, ranging from personal and commercial banking to wealth management and capital markets services. Overall, BMO Financial Group has over 12 million customers internationally. When banking with BMO, you can expect 24/7 customer support via online banking, telephone and mobile banking, or branch locations during operating hours.

In this article, we'll explore the best BMO GICs, the different types of BMO GICs available, and why they are a smart investment option. (If you’re wondering how GICs work, read our guide: “What is a GIC?”)

Compare other BMO Bank of Montreal products

As one of Canada’s five largest banks, BMO Bank of Montreal also offers a number of chequing and savings accounts tailored to different customers within its personal and commercial banking services. You can also find BMO credit cards with cash back and travel rewards.

The bottom line

BMO GICs are a safe and reliable investment option for Canadians looking to grow their savings. With competitive interest rates and a variety of options to choose from, BMO GICs are a smart choice for those looking to invest in a low-risk option. Consider your financial goals and the features of each so you can choose the best BMO GIC for your needs.