The best GIC rates in Canada

Q: How long should I lock in a GIC for?

As with all investments, your decisions need to be geared toward your goals. If you need access to your money soon, choose a short-term GIC or a high-interest savings account . If you’re in it for the long haul and don’t mind committing your cash for several years, GIC terms anywhere from 1 to 10 years are available.

Q: Where can I get more than a 5% GIC in Canada?

Competition between banks for the best GIC interest rate is extremely high right now. Many banks are offering GICs with a 1-year term paying 4.15% interest or more. Higher rates are typically offered by challenger banks, digital banks and credit unions. These banks can offer more compelling rates because they have fewer costs than traditional banks who have in-person branches and other costs.

Q: What is the highest paying GIC rate in Canada?

As of November 2024, the highest paying 1-year term GIC rate in Canada is 4.15% offered by Achieva Financial, ICIC Bank Canada, and Saven Financial. For GICs with a 5-year term, MCAN Wealth currently offers the highest rate at 4.00%.

Guaranteed investment certificates (GICs) come with a guaranteed rate of return for a specified term. Here are our top picks for the best GIC rates in Canada.

Compare all GIC rates

Term	Registered	Non-registered
1-mo	No available rate at the moment.	Luminus Financial
3-mo	EQ Bank	EQ Bank
4-mo	Oaken Financial	Luminus Financial
6-mo	Luminus Financial	Luminus Financial
1-yr Compare all rates	Oaken Financial	Oaken Financial
2-yr	EQ Bank	MCAN Wealth
3-yr	EQ Bank	MCAN Wealth
4-yr	EQ Bank	MCAN Wealth
5-yr Compare all rates	EQ Bank	MCAN Wealth
10-yr	EQ Bank	EQ Bank

GICs Frequently Asked Questions

Why invest in a GIC?

As the name indicates, what people love about GICs is that the principal is guaranteed to be returned to you, which means you’ll never lose your initial investment and always realize returns in the form of interest. Unlike more volatile investments, such as stocks or ETFs, GIC investors are not exposed to the possibility of a loss due to market fluctuations. GICs generally don't hold the promise of very high returns, however, but are considered safe, conservative investments.

Should I invest in a fixed or variable rate GIC?

Fixed rate GICs, the most well-known GIC product, promise a defined amount of interest payable at specified periods during the term proving to be very low risk. This allows you to predict exactly how much you will earn over your desired term. On the other hand, variable rate GICs have rates that may change throughout the term which are dependent on a fluctuating interest rate benchmark, usually the financial institution's Prime rate. Therefore with variable rate GICs, you can benefit from higher interest rates when the Prime rate increases, but you take the risk when interest rates drop.

How long should I lock in a GIC for?

Where can I get more than a 5% GIC in Canada?

What will GIC rates be in 2024?

With the downward movement in the Bank of Canada’s overnight target rate in 2024, GIC rates in Canada are slowly decreasing. In early 2024 the best 5-year non-registered GIC rates were closer to 5%, whereas today they are near 4%. Economists are now forecasting that the central bank's rate-cutting cycle could continue throughout 2025. Should this occur, interest rates for deposits and GICs will also decrease.

What is the difference between CDIC versus Provincial GIC insurance?

Provincial insurance is quite similar to the federal insurance provided through the CDIC. The differences between the two are quite small, ranging only slightly in their policies and coverage rates. Each province also offers different policies from the next one. Provincially-insured GICs are usually issued by Credit Unions and their digital bank branches, like Saven Financial and Meridian Credit Union. GICs from credit unions are insured by deposit insurance plans of their respective provinces.

Also read: Should I Get a GIC With a Bank or Credit Union?

What are some alternative investment options to GICs?

GICs are a great savings vehicle if you are looking to invest your money at no risk. However, depending on your risk profile and whether you would be needing the funds you want to deposit sooner than anticipated, there may be other investment products better suited for you.

High-interest Savings Accounts

Similar to a GIC, a high-interest savings account is a safe investment vehicle where you deposit your cash in a bank account that pays interest with no risk of losing any money. Unlike GICs, however, high-interest savings accounts let you access your money at any point with no restrictions on withdrawals, which makes them great for storing away an emergency fund or general short-term savings. You can compare some of Canada's best high-interest savings accounts using our comparison tool.

Robo-advisors

A robo-advisor can be a great option for investors who are comfortable with taking some financial risk for higher potential returns but also don’t know how (or want) to manage their own portfolio. With a robo-advisor, you won’t have to do any of the work or pay high fees, as portfolios are managed, rebalanced, and maintained in an automated fashion without active managers. You can browse our list of the best robo-advisors in Canada to find the right option for your financial needs.

Online brokerage

An online brokerage is on the opposite end of the investing spectrum compared to GICs. A digital trading platform for the DIY investor who wants to buy and sell shares of individual stocks and ETFs, an online brokerage is for investors who are comfortable with taking investing into their own hands and those with longer-term investment horizons.

What is the highest paying GIC rate in Canada?

Why are 1 year GIC rates so high?

1 year GIC rates are the highest right now because of the inverted yield curve - which means short term interest rates are higher than longer-term ones. Typically, longer-term GICs offered better rates than shorter ones. Interest rates have been falling since summer 2024, with economists predicting further rate cuts in 2025. Thus, the rates offered on longer term GICs like 5 and 10 year terms may soon match or exceed 1 or 2 year rates.

Historical 1-year and 5-year non-registered GIC rates

Natasha Macmillan, Business Unit Director - Everyday Banking

November 13, 2024

Our guide to GICs in Canada

Canadians' interest in GICs have been on the rise in recent years as they are considered to be safe investments. There are many things to consider when shopping around for GICs - and we have broken it all down for you.

What is a GIC?

A GIC, guaranteed investment certificate, is an investment product that has a guaranteed rate of return for a specified duration of time. It is deemed to be a safe and extremely low-risk type of investment.

With a GIC, you deposit your money at a bank or other financial institution for a specific period of time (known as the “term”), and they will guarantee you a return of the principal (the initial amount you invested) plus pay you in the form of interest. GIC terms can vary anywhere from as little as 30 days up to 10 years, and typically, the longer you're willing to invest your money, the higher the interest rate you'll receive.

Are GICs worth it for you? It depends on your situation and financial goals, but in general, GICs are particularly useful if:

You have a short investment horizon (need access to your cash soon for an upcoming retirement, home purchase, wedding etc. and can’t risk any losses to your initial deposit)
You don’t want to be tempted to spend your money (GICs lock away your cash for a set term)
You don’t want to take on any investment risk in the stock market

Highest GIC interest rates (non-redeemable)

Best 1 year GIC: 4.15% at Achieva Financial
Best 2 year GIC: 4.00% at MCAN Wealth
Best 3 year GIC: 4.00% at MCAN Wealth
Best 4 year GIC: 3.90% at MCAN Wealth
Best 5 year GIC: 4.00% at MCAN Wealth

Canadian GIC rates comparison

Compare Canadian GIC rates (non-redeemable and non-registered) using the most popular term lengths in the table below.

Provider	1-year GIC	2-year GIC	3-year GIC	4-year GIC	5-year GIC	Minimum investment
Achieva Financial GICs	4.15%	3.95%	3.75%	3.70%	3.75%	$1,000
Alterna Bank GICs	3.60%	3.40%	3.30%	3.25%	3.30%	$500
BMO GICs	3.40%	3.25%	3.30%	3.25%	3.30%	$1,000
CIBC GICs	3.40%	3.25%	3.10%	3.05%	3.05%	$1,000
EQ Bank GICs	4.00%	3.85%	3.80%	3.75%	3.85%	$100
Hubert Financial GICs	4.05%	3.95%	3.85%	3.75%	3.65%	$1,000
ICICI Bank Canada GICs	4.15%	3.80%	3.70%	3.50%	3.50%	$1,000
LBC Digital GICs	3.75%	3.50%	3.35%	3.35%	3.40%	$1,000
MCAN Wealth GICs	4.05%	4.00%	4.00%	3.90%	4.00%	$100
Meridian Credit Union GICs	3.65%	3.40%	3.30%	3.25%	3.30%	$1,000
Motive Financial GICs	4.00%	3.75%	3.70%	3.60%	3.60%	$1,000
National Bank GICs	3.40%	3.25%	3.10%	3.30%	3.35%	$500
Oaken Financial GICs	4.05%	3.80%	3.55%	3.55%	3.55%	$1,000
Peoples Trust GICs	4.00%	3.75%	3.65%	3.60%	3.60%	$1,000
RBC GICs	3.40%	3.25%	3.10%	3.05%	3.00%	$1,000
Saven Financial GICs	4.15%	4.00%	3.85%	3.75%	3.75%	$1,000
Simplii Financial GICs	3.68%	3.44%	3.44%	3.54%	3.68%	$100
Scotiabank GICs	3.40%	3.25%	3.15%	3.10%	3.05%	$1,000
Tangerine GICs	4.05%	3.90%	3.80%	3.80%	3.90%	$500
TD Bank GICs	3.75%	3.50%	3.10%	3.05%	3.30%	$1,000

How are GIC rates calculated?

Interest on GICs is typically paid out either monthly, biannually, annually, at their maturity or on a predetermined date set by the provider.

There are two types of interest associated with GICs - simple interest and compound interest.

Simple interest is paid on the initial principal only. For example, if you invested $50,000 into a two-year GIC with 1.5% interest, you’d receive a return of $750 each year. Following this logic, at the end of your two-year term, you’d have made $1,500 in interest.

Alternatively, compound interest is paid on the principal as well as the interest earned at every interval (essentially, “interest on top of interest”). If we were to use the same GIC in the example above, your total interest earned after two years would be $1,511.25. That’s a gain of $11.25 on top of your simple interest. And, if you decided to let your interest compound monthly instead of yearly, you’d net an even higher extra amount at $21.76.

Types of GICs in Canada

1. Cashable GICs

For those looking to take advantage of higher GIC interest rates but don't feel comfortable locking their money away for too long, cashable GICs are the perfect solution. These GICs typically only involve a one-year term and have the option to cash out early after 30 to 90 days, providing an ideal solution for fluctuating interest rates. If the rate rises above that of your GIC, you can always cash out and put your money somewhere else. If it falls lower, you'll be locked into a guaranteed higher percentage for the length of your term. It's essentially a win-win. The only drawback? Cashable GICs tend to have lower interest rates than others due to their flexibility.

2. Registered GICs vs. non-registered GICs

Registered GICs exist inside registered investment accounts such as TFSAs and RRSPs, meaning you won't have to pay taxes on the interest accrued. That being said, you will have to obey the rules of these accounts when it comes to contribution limits.

Non-registered GICs are essentially the opposite of registered GICs: while the interest you earn is taxable, there's also no limits on what you can invest.

3. Redeemable GICs vs. non-redeemable GICs

Similar to cashable GICs, redeemable GICs also allow you to cash out early if desired. The main difference? Redeemable GICs will typically allow you to access you money early without being subjected to a waiting period. The only catch is that you may get saddled with lower-than-average early redemption rates.

The opposite of redeemable GICs, non-redeemable GICs won't allow you to access you money early without paying a penalty fee. That being said, you'll earn much higher interest.

4. Market-linked GICs

If you're looking for a GIC with some higher potential returns, a market-linked GIC may be right for you. These function as a sort of hybrid: while they're still technically GICs, they're also linked to a particular stock market index and can only guarantee a minimum and maximum total return as a percentage. Unlike other GICs, these are subject to market volatility.

5. Foreign currency GICs

Foreign currency GICs are just what they sound like: GICs in a foreign currency (typically USD GICs). Investing in a U.S. currency GIC would diversify your portfolio, and since the US dollar is generally stronger than ours, you could benefit from the difference.

Short-term vs. long-term GICs

One of the first things you should think about when shopping for a GIC (aside from the rate itself) is whether you’re interested in a short or long-term investment. The answer to this question will largely depend on your financial goals.

Short-term GICs are a great option for those who have a short-term savings goal and want to prioritize liquidity. They take less than a year to mature, and the principal is guaranteed with an advertised rate of interest.

Long-term GICs, on the other hand, have terms of one year or longer and typically carry higher interest rates than their short-term counterparts. These are perfect for investors with long-range savings goals (such as a downpayment on a house) or a desire to use their GIC as passive monthly income.

How are GICs insured?

The Canadian Deposit Insurance Corporation (CDIC) is a federal Crown Corporation that insures eligible deposit accounts (including GICs as well as chequing and savings accounts) made with its member banks; it’s fully backed by the Government of Canada. CDIC coverage is automatically in place for eligible accounts at CDIC member banks at no additional charge to consumers. (You don’t need to purchase insurance – it’s your bank’s insurance policy).

CDIC insurance will cover up to $100,000 of your deposits and protect your money in the highly unlikely scenario that the financial institution you bank with closes its doors or goes bankrupt. Since CDIC was founded in 1967, Canadians haven’t lost a single dollar in deposits. Over 80 banks in Canada have CDIC insurance including all of Canada’s big five banks as well as several online-only institutions like EQ Bank and Oaken Financial.

GIC pros and cons

Pros of GICs

Cons of GICs

It's important to consider your own financial goals and risk tolerance before investing in GICs. Consulting with a financial advisor can also provide guidance for your specific situation.

GIC Investment strategies

GIC Laddering

GIC laddering is a simple way to maximize the return from your GIC investments, without locking in all of your money into one long-term investment. With this strategy you divide your money into multiple GICs, with varying maturity dates. This means you're able to access your investment at regular intervals, when the GICs mature. This can also help take advantage of higher interest rates.

Also read: How to make the most of rising GIC rates

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