Best GIC Rates in Canada for 2019
Guaranteed Investment Certificates (GICs) are some of the best savings tools available. But given their variety of terms, types, and interest rates, it’s not always easy to choose which GIC is best for you. Before you get started, make sure you understand what is a GIC and how it can help you meet your savings plans.
Choosing the right GIC depends on when you need the money, what you want to use it for, and how you want it invested. This will help you pick the right GIC term, type, and the best GIC rates in Canada for your savings!
Picking the Right GIC Term
When it comes to choosing the right GIC term for your savings, you want to focus on your personal financial goal. The GIC should mature near or on the date you need to access the funds you’ve invested. In order to choose the right term, you need to know what your money is for and when you’ll need it.
Depending on what you’re saving for, you might have only a vague idea of when you’ll need the money. For example, if you’re saving for retirement, longer GIC terms are appropriate. You may not know exactly what date you’ll retire, but you should have an idea of approximately what year. If retirement is many years away, you can certainly feel comfortable choosing GIC terms of 5 years. As they mature, you can then roll them into new 5-year term GICs or shorter terms as needed once your retirement date becomes more clear.
If you’re saving for a more specific goal, such as a house down payment, you want to choose a shorter term. Depending on how much you plan to save or when you want to go house shopping, you might choose a GIC with only a 2 or 3-year term. If you’re anticipating you’ll need your money on a certain date, try to choose a GIC that matures a few months beforehand in case your goal gets pushed ahead of schedule. For example, choose an 18-month term GIC instead of a 2-year term GIC, even if that means you’ll earn slightly less interest. Because many GICs will not let you access your investment until it matures, it’s generally better to err on the side of caution and make sure your money is available earlier rather than later!
Choosing the Right GIC Type
Different GICs have different rules, so it’s important to read the fine print carefully before you invest.
Many GICs are non-cashable and non-redeemable, which means your money cannot be accessed until the GIC term is up. This probably doesn’t matter for money you’ve put in an RRSP GIC for retirement, but if you’re looking at a GIC as an emergency fund, you don’t want to be unable to access money you might need in a hurry. Likewise, where most GICs are simple cash investments, others are linked to the stock market. This makes the return on your investment less predictable. If you are saving for something specific and need to know exactly how much you will have when your GIC matures, you might not be interested in a market-tied GIC.
Best GIC Providers in Canada 2019
CDIC-Insured GIC Rates:
|3.05%||5-year||Non-registered, RRSP, TFSA||Oaken Financial
|2.75%||5-year||Non-registered, RRSP, TFSA, RESP||TD Bank
|2.7%||5-year||Non-registered, RRSP, TFSA||ICICIBank of Canada|
|2.35%||5-year||Non-registered, RRSP, TFSA||Tangerine Bank
|2.18%||5-year||Non-registered, RRSP, TFSA||Manulife Bank of Canada
|2%||5-year||Non-registered, RRSP, TFSA, RESP||Bank of Montreal
|1.6%||5-year||Non-registered, RRSP, TFSA, RESP||Scotiabank
|1.25%||5-year||Non-registered, RRSP, TFSA, RESP||CIBC
Province-Insured GIC Rates:
|2.85%||5-year||Non-registered, RRSP, TFSA, RESP||MAXA Financial
|3.05%||6-year||Non-registered, RRSP, TFSA, RESP||Implicity Financial
|2.8%||5-year||Non-registered, RRSP, TFSA, RESP||Casera Credit Union
|2.7%||5-year||Non-registered, RRSP, TFSA, RESP||Parama Credit Union
|2.3%||5-year||Non-registered, RRSP, TFSA||Coast Capital
Ready to pick the GIC to meet your financial goal? There are plenty of Canadian banks, credit unions, and other financial institutions to choose from.
Which GIC is best for you depends on what you’re looking for. Pay special attention to the length of the GIC term, they type of GIC, whether or not the GIC can be held in a TFSA or RRSP, and of course, the GIC rates comparison. These will help you pick the best GIC for your financial goals!
Meridian, based in St. Catharines, has some of the best GIC rates in Ontario, but their accounts are also open to non-Ontarians as well (save Quebecers. Sorry.)
Oaken Financial provide registered GICs for TFSAs and RRSPs. If you want to keep your GIC tax-sheltered, this is one of your best options.
Tangerine Bank offers great GIC rates for both registered and non-registered accounts alongside appealing day-to-day banking (regular chequing and savings). For those that prefer to keep all their money in one place, rather than juggling multiple accounts across multiple banks, Tangerine is a great option.
BMO is one of the few banks that offers GICs with terms as long as 10 years. If you’re looking for ultra-long-term saving options, such as for retirement, this is one of your best options. Aside from this 10-year GIC, BMO offers a number of other GICs of different terms, types, and rates, so you’ll be able to find exactly what you’re looking for no matter your savings goals.
Parama offers cashable and non-cashable GICs with terms of 1 to 5 years and a minimum investment of $1,000. Interest is paid annually and deposited into your chequing account, which makes this a great option for savers who want to leave their principal investment alone and enjoy the income it produces!
Scotia offers non-redeemable GICs with minimum investments of $500 or $1,000. Terms range from 30 days to 10 years, so they have something for every savings goal. They also offer both short and long-term US GICs so you have maximum flexibility in how you want to save your US cash.
TD offers a diverse selection of market-linked GICs with maximum potential returns listed as high as 25%. They offer both cashable and non-cashable options, as well as US dollar GICs.
CIBC has 1-year term GICs with rates as high as 1.50%. They require a minimum investment of $1,000 and offer TFSA and RRSP GICs to tax-shelter investments.
HSBC is one of the few banks that offers TFSA redeemable GICs. If you need to access your money before the 1-year term is up, your GIC can be redeemed within the first 89 days with no interest paid. This is a good option if you want to start investing in GICs, but need to ease into the experience of locking up your money for a fixed term!
Manulife offers short-term non-registered GICs for 30 to 365 days. For registered GICs in TFSAs and RRSPs, they provide longer terms of 1 to 5 years. The minimum investment is $2,500, so these are better options for savers with larger financial goals.
Coast Capital offers a variety of term deposits for both Canadian and US currency. One of their more eye-catching products is the rising-rate term deposit, where accountholders earn more and more interest for every year money is invested. The 7-year rising rate term deposit goes up to 3.25%!
MAXA Financial offers GICs with terms of 1 to 5 years, requiring a relatively low minimum deposit of $500. All GICs are non-redeemable prior to maturity, so this is only a good choice for savings you don’t need to touch until your GIC matures.
Omnia Direct is another credit union offering strong GIC rates. Omnia offers a 1-year US GIC for those who travel frequently to the US and want to build up their US currency at high interest.
ICIC Bank Canada offers both redeemable and non-redeemable GICs. You only need a minimum of $1,000 and redeemable GICs are available for terms 1 year and above. They also offer US GICs if you’re looking to diversify into other currencies.
Implicity Financial offers GICs with terms ranging from 1 to 6 years. They require a minimum investment of at least $1,000 to open a GIC.
Casera Credit Union is another option if you prefer to do your banking with a credit union rather than a large financial institution.
motusbank is an online bank offering several non-redeemable GIC options, including in tax-free and RRSP accounts, most notably the 3.20% 5-year RRSP GIC. You’ll also get 2.85% on any RRSP down to the 18-month term (also 2, 3, and 4-year RRSP GICs at the similar rates), or long-term TFSAs with identical rates as well. These are good for people who are comfortable with digital banking and aren’t planning on early withdrawal.
*Please note this product is currently not available for residents of Quebec.