Guaranteed Investment Certificates are a safe and low risk investment option for many Canadians. Like High Interest Savings Account (HISA), you should always shop around for the best GIC rates for your funds.
The interest rates are constantly changing, and given the number of financial institutions providing the investment, we’ve put together this post that shows the best rates available to you at a glance.
The ranking and rates will be updated periodically. So, bookmark the page and check back often. Below are the best GIC Rates in Canada for Non-Registered accounts as of 2023.
For registered accounts, check the links below:
If you’re looking for short term GICs, EQ Bank is currently offering 4.75% on both non-registered and registered GICs.
For promotional rate on short term savings, you can get 5.25% from Simplii Financial till April 30, 2023. Plus up to $350 in welcome bonus.
Best GIC Rates for 1-year Term
Saven Financial currently has the best 1-year GIC term with a rate of 5.30% that is slightly above Wealth One Bank at 5.28%.
Oaken Financial also offers a GIC rate of up to 5.25% and Peoples Trust offers up to 5.10%.
Other notable financial institutions with competitive rates on the 1-year GIC term include: EQ Bank (5.00%), Bridgewater Bank (4.90%), Haventree Bank: 4.86%
and Tangerine (4.85%).
| Rank | Financial Institution | GIC Rate (%) | Min. Investment ($) | Deposit Insurance | Redeemable? |
|---|
Where there are ties, the GIC provider with the lowest minimum investment is ranked higher. Otherwise, they are displayed in alphabetical order.
Best GIC Rates for 3-year Term
With a rate of 5.08%, Wealth One Bank has the best 3-year GIC rate and is followed by Peoples Trust, Saven Financial and Oaken Financial at 4.85%.
However, you should note that the Wealth One Bank interest rate is a promotional rate that will end by March 1, 2023.
Several other banks offer competitive rates of up to 4.30% such as EQ Bank and Tangerine.
| Rank | Financial Institution | GIC Rate (%) | Min. Investment ($) | Deposit Insurance | Redeemable? |
|---|
Best GIC Rates for 5-year Term
Wealth One Bank also has the best 5-year GIC term rate with its 5.08% offering. Saven Financial and Accelerate Financial are not far behind with a 5.00% rate on their 5-year GIC terms.
Several other banks also offer competitive rates including Motive Financial (4.60%), Peoples Trust (4.50%), Oaken Financial (4.50%) and many more.
Check the table below to see the other banks and credit unions with competitive 5-year GIC rates.
| Rank | Financial Institution | GIC Rate (%) | Min. Investment ($) | Deposit Insurance | Redeemable? |
|---|
Not ready to lock-in your money for years?
Check some of the high interest savings account offering in Canada below:
- Simplii Financial promotional savings rate of 5.25%
- Saven Financial Savings Account: 3.75%
- Wyth Financial: 2.25%
- EQ Bank Savings Plus Account: 2.50%
- Neo Financial Savings Account: 2.25%
- Motive Savvy Savings Account: 3.80%
- Canadian Tire High Interest Savings: 3.00%
Overall, EQ Bank has the best savings account offering. Why? Because savings rates is just one part of the equation. You should consider other factors like fees, website user interface, other account types, key features and availability across Canada.
With EQ Bank, you get a non-promotional rate of 2.50% on its regular account, slightly lower than Motive, Saven and Wyth, and the same rate on the TFSA and RRSP account. Other features include:
- Free unlimited debit transactions including Interac e-Transfers
- There’s also a joint account so you can maximize your CDIC coverage
- Cheap international money transfer through its partnership with Transferwise
Related Post: Best High Interest Savings Accounts
Overall Best GIC Rates 2023
These are the top 10 GIC providers ranked over the 1-year to 5-year GIC terms.
A longer list showing the rates are shown in the next section.
| Overall Rank | Financial Institution | Min. Investment ($) | Deposit Insurance | Redeemable? | Link |
|---|
Overall, here are some of the best GIC rates at the moment:
- Wealth One Bank: 5.08% on 5-year GIC
- Wealth One Bank: 5.08% on 3-year GIC
- Saven Financial: 5.30% on 1-year GIC
So if you’re looking to ladder your GICs, combining some of these GIC rates is a smart move.
If you’re a resident of Ontario, you can get some of the best GIC rates from Saven Financial. For all other provinces, EQ Bank and Oaken currently some of the best GIC providers.
They offer the best, or one of the top, GIC rates on the 1 to 10 year GIC terms so they are the best GIC providers for laddered GICs.
How did we arrive at the overall rankings?
The overall ranking was determined using an average of the rankings of the interest rates across the 1-year to 5 year terms.
You can sort any of the GIC terms to see the top GIC rates.
Or go to the next sections below showing the best GIC rates for the various GIC terms.
| Overall Rank | Financial Institution | 1-year | 2-year | 3-year | 4-year | 5-year |
|---|
In terms of the average GIC rates across the 1-year to 5-year, EQ Bank currently offers one of the best GIC rates in Canada.
And with a low investment amount of just $100, EQ Bank is the overall best GIC provider at the moment. It is ideal for someone looking to start with a low investment amount. An account can be opened online in just a few minutes so getting started is easy.
Motive Financial and Oaken are other top choices with a minimum investment amount of just $1,000 and competitive GIC rates across the 1-year to 5-year terms.
The Best GIC Providers in Canada
These are the best Banks and Credit Unions with the most attractive GIC Rates:
EQ Bank GICs
EQ Bank is one of the most popular online banks in Canada offering no-fee banking. Its high-interest savings account is arguably the best in Canada with its competitive rate, Zero fees for day-to-day banking and great features.
In addition, it offers some of the best GIC rates in Canada. Learn more about its GIC offerings in this EQ Bank GICs Review.
If you’re looking to open a registered account, check this EQ Bank RSP and TFSA Review.
Related: EQ Bank Review
Equity Credit Union GICs
Equity Credit Union is an Ontario-based credit union that has been serving its members since 1942.
At $5,000, it has one of the highest minimum amount required to invest in a GIC. But it makes up for this with its competitive rates across the various terms.
Equity Credit Union is insured by the Financial Services Regulatory Authority of Ontario. Deposits are covered up to $250,000 and unlimited in registered accounts.
Savings account rate is pretty low at just 0.30% paid quarterly, compared to EQ Bank at 2.50%.
You can get the same rate on the registered accounts (TFSA and RRSP) and they will cover your transfer in fees up to $75.
Related Posts:
Saven Financial GICs
Saven Financial is a digital bank and a division of FirstOntario Credit Union. It was launched in January 2021 and currently offers one of the best savings account rates and GIC rates in Canada.
The HISA interest rate is 3.75% and the GIC rates are below:
- 1-year GIC Rate: 5.30%
- 2-year GIC Rate: 5.00%
- 3-year GIC Rate: 4.85%
- 4-year GIC Rate: 4.85%
- 5-year GIC Rate: 5.00%
Check my full Saven Financial Review here.
Oaken Financial GICs
Oaken Financial is backed by Home Bank, a subsidiary of Home Trust Company. It offers GICs with terms ranging from 1 year to 5 years, with one of the best rates in Canada.
Both Home Bank and Home Trust Company are separate members of CDIC, so your deposits are covered.
Oaken Financial’s 1-year GIC rate is 5.25% making it one of the top GIC providers in the ranking above.
It’s regular savings account has a rate of 3.40%
Accelerate Financial GICs
Accelerate Financial is a division of Crosstown Civic Credit Union, a provincially regulated and one of the top 5 credit unions in Manitoba.
It currently has some of the best GIC rates in Canada, with a minimum investment amount of $1,000. The GICs can also be held in the registered accounts at the same competitive rates.
Though it is not covered by CDIC, all your deposits are fully covered through Deposit Guarantee Corporation of Manitoba, DGCM.
The current rate on its High-Interest savings and registered accounts is 3.40%.
Related Post: Accelerate Financial Review
Peoples Trust GICs
Peoples Trust is a CDIC-insured trust company based in Vancouver, British Columbia. It is a division of Peoples Group, a financial services company that has been serving Canadians since 1985.
Peoples Trust has a competitive rate of 3.00% on its e-savings account and Tax-free Savings.
Learn more about the banks through this Peoples Trust Review.
Luminus Financial GICs
Luminus Financial is an arm of Starnews Credit Union, an Ontario based credit union founded in 1951. Luminus has over 5,500 members with assets of around $200 million. Deposits are secured up to $250,000 by the provincial deposit insurer.
Achieva Financial GICs
Achieva Financial is an online bank and a division of Manitoba based Cambrian credit union. Deposits are 100% protected through the provincial insurer, DGCM.
It offers a rate of 3.40% on its High-interest savings account.
Hubert Financial GICs
Hubert Financial is a division of Sunova Credit Union Ltd, another Manitoba based credit union.
Daily savings rate is currently 3.40%
It’s current GIC rates are:
- 1-year GIC Rate: 4.85%
- 2-year GIC Rate: 5.25%
- 3-year GIC Rate: 4.85%
- 4-year GIC Rate: 4.90%
- 5-year GIC Rate: 5.00%
Related Post: Hubert Financial Review
Comtech Fire Credit Union GICs
Comtech Fire Credit Union is an Ontario based financial institution with over 20,000 members and more than $530 million in assets.
It’s current GIC rates are:
- 1-year GIC Rate: 2.10%
- 2-year GIC Rate: 2.60%
- 3-year GIC Rate: 2.85%
- 4-year GIC Rate: 3.00%
- 5-year GIC Rate: 3.20%
Revelstoke Credit Union GICs
Revelstoke Credit Union is a British Columbia based credit union. Its deposits are fully protected by the provincial deposit insurer, CUBIC BC.
It’s current GIC rates are:
- 1-year GIC Rate: 4.60
- 2-year GIC Rate: 4.50
- 3-year GIC Rate: 4.25
- 4-year GIC Rate: 4.20
- 5-year GIC Rate: 4.20%
Savings account rate varies from 0.25% for regular savings to 1.00% for kids and youth accounts.
Outlook Financial GICs
Outlook Financial is a division of another Manitoba based credit union, so its deposits are also 100% covered by the provincial deposit insurer.
The current GIC rates are:
- 1-year GIC Rate: 4.00%
- 2-year GIC Rate: 4.20%
- 3-year GIC Rate: 4.50%
- 4-year GIC Rate: 4.75%
- 5-year GIC Rate: 5.00%
Outlook financial also has a savings account rate of 2.50%.
Maxa Financial GICs
Maxa Financial, a division of Westoba Credit Union, has an attractive rate on its HISA of 3.35%.
Check this Maxa Financial review for the GIC rates and the other products from the bank.
Wealth One Bank GICs
Wealth One Bank of Canada was launched in 2015 as a federally regulated Schedule 1 Bank and a CDIC member. Its GIC rates are currently one of the best in the country.
It also offers a competitive rate of 3.40% on its high interest savings account, which is also applicable on its TSFA and RRSP accounts.
Tandia Financial Credit Union
Tandia Financial Credit Union is another Ontario-based credit union that traces its root back to 1940.
It currently has one of the highest 5-year GIC rates among the credit unions. Your funds at the credit union are insured through FSRAO.
Wyth Financial GICs
Wyth Financial, formerly Concentra Bank, is a schedule 1 bank and one of the largest in Canada.
It provides banking services to individuals, businesses and credit unions across the country. Some of its best banking products include a HISA with 2.25% interest rate, competitive GIC rates and mortgages.
The current GIC rates are:
- 1-year GIC Rate: 4.30%
- 2-year GIC Rate: 4.55%
- 3-year GIC Rate: 4.60%
- 4-year GIC Rate: 4.65%
- 5-year GIC Rate: 4.75%
Note: Wyth Financial is no longer accepting new clients. They have been acquired by Equitable Bank and their products are now merged with those of EQ Bank.
Learn more: Wyth Financial Review
Big Banks GIC Rates
If you’re looking to earn a competitive rate on your GIC, you’ll have to look beyond the big 5 banks. At the time of writing, the big banks still offer below 2.50% on their 5-year GIC terms compared to 5.0% and above at the top online banks. That’s a big difference of up to 2.5%!
To get the best GIC rates, consider opening an account with an online bank or credit union with decent standard rates that are not teaser rates to get in you. Luckily, there are several banks to choose from.
Bottom line is, if you want a rate that’ll give you the best chance of beating inflation, consider EQ Bank, Motive and other top online banks above the big 5 banks.
What are GICs?
Guaranteed Investment Certificates (GICs) are a type of investment that allows you to invest your funds with a financial institution over a set period, the term.
In exchange, you’ll receive a guaranteed amount at the maturity, representing the principal invested and an interest based on the rate agreed.
Because of this, GICs are one of the safest investments available to Canadians.
Features of Guaranteed Investment Certificates
Here are some key features of a Guaranteed Investment Certificate (GIC):
- There is a minimum amount required to investment. This varies but generally starts at $500.
- You can invest for different terms, depending on your savings goals. Terms could be as short as 30 days or as high as 10 years
- The longer the term, the higher the interest rate you can expect to earn
- There are no fees on GIC investments
- GICs are protected by Canada Deposit Insurance Corporation (CDIC) or a provincial deposit insurer. CDIC coverage was not available for Foreign currency GICs and GICs with terms over 5 years but this changed effective April 30, 2020.
- Interest payment can be received at different set intervals or at maturity. You may also be able to automatically reinvest the interest till maturity.
GIC Insurance
Most GICs are covered and protected by the Canadian Deposit Insurance Corporation (CDIC). The protection, just like bank deposits, is automatic and you don’t have to do anything from your end to activate it.
So, if a financial institution fails, CDIC will notify you within days and both the principal and interest paid to you.
But note that CDIC protection is limited to $100,000 per category at each financial institution.
So, if you have more than $100,000 in GICs at a single issuer, consider moving some of the investment to other financial institutions, putting some in your spouse’s account or opening a joint account with them.
That way, you can maximize the protection available to you.
Learn more about the strategies to maximize your CDIC protection and how CDIC Coverage works.
CDIC members includes banks and federally regulated credit unions.
Deposits at provincial credit unions are not protected by CDIC, but they are covered by the provincial deposit insurer. All the 10 provinces and territories have their own provincial insurer and the amounts covered may vary.
For example, Financial Services Regulatory Authority of Ontario, the provincial insurer, covers up to $250,000 and provides unlimited coverage for qualifying deposits in registered accounts.
Manitoba and British Columbia on the other hand offers 100% protection of deposits.
Interestingly, provincial-regulated credit unions have some of the best rates. Since they are covered by the provincial insurer, you can be rest assured of the protection of your funds.
How is GIC Interest taxed?
Interest earned on GICs held in a registered account, like RRSP, TFSA or RESP, are tax-sheltered. But if you hold a GIC in a non-registered account, the interest earned will be taxed.
While all returns (capital gains, interest, dividends etc.) earned in non-registered accounts are taxed, the tax treatment varies. In general, you’ll pay less tax on capital gains and dividends than you would on interest income.
The tax rate on GIC interest will vary depending on your total taxable income for the year and even your province. You should consider this as part of a holistic tax planning strategy.
Learn more about the best investments for non-registered accounts here.
Conclusion
The ranking and rates will be updated periodically. So, bookmark the page and check back often.
To learn more about Guaranteed Investment Certificates (GICs) in Canada, check out our detailed post on the subject.
And if you want the best rate for savings account, EQ Bank currently offers 2.50% or get a promotional rate of 5.25% from Simplii.
Best GIC Rates in Canada FAQs
As at the time of writing this, the overall best GIC provider is EQ Bank. Wealth One Bank, Saven Financial, Oaken Financial and are not far behind if you’re looking for the highest GIC rates in Canada.
It varies but most financial institutions have their minimum set at $1,000 and below.
All deposit taking financial institutions in Canada are required to be members of either CDIC or the provincial deposit-insurer. So whichever bank you choose, you can be that your funds are protected.
If you’re in Ontario, Equity Credit Union is the best bank for GICs. For other provinces, EQ Bank is the better bank for GICs in Canada. It offers competitive rates across all the GIC terms with a low minimum investment amount of $100.
GIC rates have been going up for the past few months as the BoC has started increasing the benchmark interest rate. You can expect the trend of increasing GIC rates to continue in 2022 as BOC as signified its intention for further increases in the future.
With GIC interest rates on the move, it is a good time to lock in your funds in GIC terms that match your investment horizon. With up to 5.00% GIC rate, GICs are now a great alternative to many dividend stocks.
High-interest savings accounts are an alternative to GICs. You always have access to your funds and earn a decent rate on your money. But they currently pay just a fraction of the rates offered by GICs.
The last time I read the fine print for Oaken Financial G.I.C.’s, the interest rate was not guaranteed.
Hello Simon,
I’m looking at opeing an investment acoount with my bank in Canada, but I;m not a citizen nor a PR. Is this possible? and which is the best. Note I have a chequeing/savings account with one of the Ontario banks
Why you’re not showing LBC online bank (laurentian) 4.60% gic 1 year
Hi Simon,
Just letting you know that Wealth One Bank is currently running a campaign till the end of October and the promo rate is 4.68% for 1 year, 4.88% for 2 year, 5.08 for 3 & 4 year, 5.18% for 5 year. Here’s the webpage: https://www.wealthonebankofcanada.com/Invest/GICs