Top GIC Rates in Canada Today

Updated on January 20, 2024

Explore the current information on the best GIC rates in Canada in this article. Find various details and relevant information about who offers the best GIC rates as of today.

Top GIC Rates in Canada

Investing in GICs is a popular choice for those seeking stable and low-risk returns. The appeal lies in their guaranteed nature, providing a sense of security. However, the trade-off is lower growth potential due to comparatively modest interest rates.

In Canada, top GIC rates can be found with various financial institutions, such as RBC with its ESG Market-Linked GIC, CIBC offering the Index Growth GIC, as well as EQ Bank and Tangerine. Some institutions even allow early withdrawals, though penalties may apply.

Canadian GIC Rates

A Guaranteed Investment Certificate, or GIC, is something you can get from banks and trust companies. With a GIC, you’re promised a set amount of money back after a specific period. Even though it’s a sure thing, the amount you get back is usually not as much as what you might get from stocks, mutual funds, bonds, or other investments. How much you end up with can change based on a bunch of different things.

The time you agree to keep your money in a GIC, the rate the bank decides on, and other important details are factors that can affect what you get back. Not all banks and trust companies offer the same rates for GICs; each one can be different. Plus, they give you choices for how long you want to invest your money – like 1 year, 5 years, 2 years, 18 months, and more. Even if it’s the same bank or trust company, each of these time options can have its own GIC Rate.

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Benefits of GIC

Investing in GICs comes with various advantages, such as:

  1. Guaranteed Rate of Return: GICs promise a set return on your investment.
  2. Risk Reduction: They help in lowering overall investment risk.
  3. Portfolio Diversification: GICs contribute to diversifying your investment portfolio.
  4. Steady Income in Recession: GICs provide a reliable income stream, even in economic downturns.
  5. Flexible Term Lengths: GICs offer a range of term options to suit different needs.
  6. Suitable for Short-Term and Long-Term: Whether you’re looking for a short or long investment, GICs accommodate both.
  7. GIC Laddering: This strategy involves staggering GIC investments to optimize returns.

Moreover, financial institutions provide various types of GICs, including:

  • Fixed-Rate GICs
  • Escalator GICs
  • Market-Linked GICs
  • Variable Rate GICs

To estimate potential returns, investors can consider factors like the investment amount, interest rate, and GIC term. Notably, changes in interest rates for long-term GICs can significantly impact the earnings for customers.

Where to Find the Top GIC Rates in Canada?

To find the best GIC rate in Canada, a common approach is comparing rates and investment amounts across various banks and financial institutions. It’s essential to be aware of withdrawal options and potential penalties, especially if there’s a chance of needing to withdraw funds before the term ends.

Some individuals opt for diversification by investing funds in multiple GICs instead of putting all their money into a single one. By selecting different terms for these GICs, they can receive increased funds at different points in time. This not only boosts the total amount but also helps mitigate overall risk.

Some of the Best GIC Rates in Canada As of Today include –

  1. Home Trust Company (1 Year)
    • Rate (Annual Compound): 5.65%
    • Rate (Semi-Annual): 5.60%
    • Rate (Monthly): 5.55%
    • Minimum Deposit: $1,000
  2. Home Trust Company (3 Year)
    • Rate (Annual Compound): 5.45%
    • Rate (Semi-Annual): 5.40%
    • Rate (Monthly): 5.35%
    • Minimum Deposit: $1,000
  3. Tangerine (1 Year)
    • Rate: 5.70%
  4. Tangerine (1.5 Year)
    • Rate: 5.75%
  5. Tangerine (5 Year)
    • Rate: 3.85%
  6. Oaken Financial (1 Year)
    • Rate (Annual): 5.75%
    • Rate (Semi-Annual): 5.70%
    • Rate (Monthly): 5.65%
    • Minimum Deposit: $1,000
  7. WealthONE Bank of Canada (1 Year)
    • Rate: 5.98%
    • Minimum Deposit: $1,000
    • Type: non-redeemable
  8. WealthONE Bank of Canada (3 Year)
    • Rate: 5.48%
    • Minimum Deposit: $1,000
  9. EQ Bank (1 Year)
    • Rate (Non-registered): 5.65%
  10. EQ Bank (5 Year)
    • Rate (Registered): 5.15%
  11. Peoples Bank (1 Year)
    • Rate (Long Term GIC): 5.80%
  12. Peoples Bank (5 Year)
    • Rate (Long Term GIC): 4.50%
  13. Motive Financial (1 Year)
    • Type: Non-registered
    • Rate: 5.750%
  14. Motive Financial (3 Year)
    • Type: Non-registered
    • Rate: 5.480%
  15. Haventree Bank (3 Year)
    • Type: Long-term GIC
    • Rate (Maturity): 5.36%
    • Rate (Annual): 5.36%
    • Rate (Semi‐Annual): 5.26%
    • Rate (Monthly): 5.16%
    • Minimum Deposit: $5,000
  16. Haventree Bank (5 Year)
    • Rate (Maturity): 5.01%
    • Rate (Annual): 5.01%
    • Rate (Semi‐Annual): 4.91%
    • Rate (Monthly): 4.81%
    • Minimum Deposit: $5,000
  17. LBC Digital (3 Year)
    • Type: non-registered and on-redeemable
    • Rate: 5.35%
    • Minimum Deposit: $100
  18. LBC Digital (5 Year)
    • Rate: 5.30%
    • Minimum Deposit: $100
  19. Laurentian Bank (3 Year)
    • Rate: 5.35%
    • Minimum Deposit: $500
  20. Laurentian Bank (5 Year)
    • Rate: 5.30%
    • Minimum Deposit: $500
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It’s important to keep in mind that the GIC rates provided by banks and financial institutions may change over time. Therefore, before making any investments, investors should double-check the current rates and other crucial aspects of the GICs.

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