Best GIC Rates in Canada – June 2021

The best GIC rates in Canada across the 1 to 5 year terms

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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 June 15th, 2021.

For registered accounts, check the links below:

Overall Best GIC Rates 2021

These are the top 5 GICs ranked over the 1-year to 5-year GIC terms.

RankFin. InstitutionRedeemable?Min. Inv. ($)Insured ByLink
1Saven FinancialNo1,000ProvincialVisit Site
2Oaken FinancialNo1,000CDICVisit Site
3Equity Credit UnionNo5,000ProvincialVisit Site
4Wealth One Bank CanadaNo1,000CDICVisit Site
5EQ BankNo100CDICVisit Site
Overall Best GIC Rates, 1-year to 5-year Terms

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.

RankFinancial Institution1-year2-year3-year4-year5-year
1Saven Financial1.55%1.70%1.80%1.90%2.05%
2Oaken Financial1.401.501.702.002.20
3Equity Credit Union1.501.551.802.001.70
4Wealth One Bank Canada1.401.551.651.701.90
5EQ Bank1.301.351.651.952.10
6Peoples Trust1.451.501.601.902.00
7MCAN Mortgage Corp.1.101.351.651.902.10
8Achieva Financial1.501.551.551.601.75
9Bridgewater Bank1.171.351.651.802.05
10Steinbach Credit Union1.401.451.501.552.00
Best GIC Rates in Canada for non-registered accounts

Saven Financial is the overall best GIC provider at the moment. It either has the highest GIC rates or ties for the top spot across the 1-year to 5-year GIC terms.

Unfortunately, it is only available to Ontario residents. And as a new entrant to the Canadian market, only time will tell if the rates will last.

The minimum investment amount is just $1,000, so it’s easy to start with a low investment amount.

If you’re not a resident of Ontario, then Oaken Financial is the next best GIC provider.

Best GIC Rates for 1-year Term

Saven Financial and Peoples Trust have the best GIC rate for 1-year term at 1.55%.

RankFinancial InstitutionRedeemableRateInsured ByMinimum Investment
1Saven FinancialNo1.55Provincial1,000
2Achieva FinancialNo1.50Provincial1,000
3Equity Credit UnionNo1.50Provincial5,000
4Peoples TrustNo1.45CDIC1,000
5Steinbach Credit UnionNo1.40Provincial500
Best GIC Rates in Canada for 1-year term : Non-registered Account

Where there are ties, the GIC provider with the lowest minimum investment is ranked higher. Otherwise, they are displayed in alphabetical order.

Other notable financial institutions with 1.40% GIC rate on the 1-year GIC term include: AcceleRate Financial, Wealth One Bank Canada and Entegra Credit Union.

Oaken Financial currently offers a rate of 1.40% for 1-year term. However, you can get 1.60% if you buy their 18-months GIC.

Best GIC Rates for 3-year Term

Saven Financial also ties with Equity Credit Union for the best GIC rate for the 3-year GIC term of 1.80%. Both financial institutions are based in Ontario.

RankFin. InstitutionRedeemableRateInsured ByMin. Inv. ($)
1Saven FinancialNo1.80Provincial1,000
2Equity Credit UnionNo1.80Provincial5,000
3Oaken FinancialNo1.70CDIC1,000
4EQ BankNo1.65CDIC100
5Wealth One Bank CanadaNo1.65CDIC1,000
7Bridgewater BankNo1.65CDIC5,000
8MCAN Mortgage CorpNo1.65CDIC5,000
Best GIC Rates in Canada for 3-year term : Non-registered Account

You can also get 1.60% from Peoples Trust, while Achieva Financial offers a rate of 1.55% on its 3-year GIC.

Best GIC Rates for 5-year Term

Oaken Financial has the best GIC rate on 5-year GIC at 2.20%. EQ Bank isn’t far behind with a rate of 2.10%.

RankFinancial InstitutionRedeemableRateInsured ByMinimum Investment
1Oaken FinancialNo2.20CDIC1,000
2EQ BankNo2.10CDIC100
3MCAN Mortgage Corp.No2.10CDIC5,000
4Saven FinancialNo2.05Provincial1,000
5Bridgewater BankNo2.05CDIC5,000
6Canadian Tire BankNo2.04CDIC1,000
7Steinbach Credit UnionNo2.00Provincial500
8Peoples TrustNo2.00CDIC1,000
9Wealth One BankNo1.90CDIC1,000
Best GIC Rates in Canada for 5-year term : Non-registered Account

Other notable institutions include: Equitable Bank, Equitable Trust and Home Bank with 1.81%.

Not ready to lock-in your money for years?

Check some of the high interest savings account offering in Canada below:

  • Canadian Tire High Interest Savings: 1.55%
  • Saven Financial Savings Account: 1.55%
  • Neo Financial Savings Account: 1.30%
  • EQ Bank Savings Plus Account: 1.25%
  • Motive Savvy Savings Account: 1.25%

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 and key features.

With EQ Bank, you get a non-promotional rate of 1.25% on its regular account, slightly lower than Motive and Canadian Tire, 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

The Best GIC Providers in Canada

These are the best Banks and Credit Unions with the most attractive GIC Rates:

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 1.50%.

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 1.55% and the GIC rates are below:

  • 1-year GIC Rate: 1.55%
  • 2-year GIC Rate: 1.70%
  • 3-year GIC Rate: 1.80%
  • 4-year GIC Rate: 1.90%
  • 5-year GIC Rate: 2.05%

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 just 1.40%, lower than the ones in the ranking above, but you can get 1.60% for 18-months term.

It’s regular savings account has a rate of 1.15%


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 1.20%.

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 1.20% 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 1.20% 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 1.00%

It’s current GIC rates are:

  • 1-year GIC Rate: 1.30%
  • 2-year GIC Rate: 1.40%
  • 3-year GIC Rate: 1.50%
  • 4-year GIC Rate: 1.60%
  • 5-year GIC Rate: 1.70%

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: 1.20%
  • 2-year GIC Rate: 1.30%
  • 3-year GIC Rate: 1.40%
  • 4-year GIC Rate: 1.50%
  • 5-year GIC Rate: 1.60%

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: 0.70%
  • 2-year GIC Rate: 1.00%
  • 3-year GIC Rate: 1.00%
  • 4-year GIC Rate: 1.00%
  • 5-year GIC Rate: 1.10%

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: 1.15%
  • 2-year GIC Rate: 1.35%
  • 3-year GIC Rate: 1.45%
  • 4-year GIC Rate: 1.55%
  • 5-year GIC Rate: 1.70%

Outlook financial also has a savings account rate of 1.10%.


Maxa Financial GICs

Maxa Financial, a division of Westoba Credit Union, has an attractive rate on its HISA of 1.10%.

Check this Maxa Financial review for the GIC rates and the other products from the bank.


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


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 1.25% on its high interest savings account, with an higher rate of 1.50% on the TSFA and RRSP accounts.


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 1.25% or get a promotional rate of 2.10% for the first 150 days from Tangerine.

Best GIC Rates in Canada FAQs

Which bank has the highest GIC Rates at the moment?

As at the time of writing this, the overall best GIC provider is Saven Financial. However, Oaken and EQ Bank have the best 5-year GIC rates. The ranking is updated periodically.

What is the minimum investment for GICs?

It varies but most financial institutions have their minimum set at $1,000 and below.

How are GICs protected?

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.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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