EQ Bank GICs Review (Rates and Features)

EQ Bank already offers one of the best high interest savings account rates in Canada. But if you’re willing to lock in your money for a fixed term, you can earn even higher through the EQ Bank GICs.

In this post, we’ll cover the GIC offerings from EQ Bank, their features, rates and how they compare to other banks.

Let’s start.

About EQ Bank

EQ Bank is a digital-only bank and a trademark of Equitable Bank, a federally regulated Schedule I bank with assets under management of $35 billion. Launched in January 2016, EQ Bank has grown to be one of the most popular online banks in Canada.

With zero fees on everyday banking, the bank currently has one of the best high interest savings account rates available to Canadian. You can check here for my full EQ Bank review.

EQ Bank GIC Review showing the rates and features

EQ Bank GICs

Guaranteed Investment Certificates (GICs) are low risk, safe and secure investments. They provide a way for Canadians to invest your money for a set period in exchange for an agreed rate of return.

Unlike HISA that allows almost unfettered access to the funds in the account, GICs are usually locked in for a fixed term in exchange for slightly higher rates.

Some financial institutions also offer redeemable GICs but the rates will be lower than a non-redeemable GIC of the same GIC term.

Whether you want to invest in a regular non-registered account or registered accounts, you may find GICs that meets your needs at EQ Bank. But note that the registered GICs are only available as TFSA or RRSP for now.

Features of EQ Bank GICs

Here are some of the features of EQ Bank GICs. You should compare them to the other GIC providers to decide if it’s right for you.

  • Low investment amount: At just $100, the minimum investment amount makes it easier to start investing with little money
  • Competitive GIC Rates: Compared to the big banks and some online banks, you can earn a competitive return on your money.
  • Deposit Guarantee: Your deposits through CDIC
  • Flexible GIC terms: There are several GIC terms available. You can choose between the short or long term options depending on your investment needs.
  • EQ Bank GICs are non-redeemable before maturity: The bank allows you to cancel a GIC purchase by the end of the following day. After this period, you will not be able to redeem the GICs until maturity

The maximum number of GICs that can be held by each customer is 20 and the amount is capped at $500,000.

EQ Bank GICs Rates

EQ Bank has some of the best GIC rates in Canada across the different GIC terms. The bank has 3 different GIC types. Below are the GIC rates at the time of writing this post.

Regular EQ Bank GICs

These are the standard GICs at EQ bank and are non-registered.

  • 3-month:1.50%
  • 6 month: 1.45%
  • 9 month: 1.40%
  • 1 year: 1.20%
  • 15 month: 1.20%
  • 2 year: 1.30%
  • 27 month: 1.30%
  • 3 year: 1.40%
  • 4 year:  1.50%
  • 5 year: 1.70%
  • 6 year: 1.60%
  • 7 year: 1.70%
  • 10 year: 2.00%

EQ Bank TFSA and RSP GICs

The 2 registered GICs have the same GIC rates:

  • 3-month:2.30%
  • 6 month: 1.80%
  • 9 month: 1.65%
  • 1 year: 1.50%
  • 15 month: 1.05%
  • 2 year: 1.05%
  • 27 month: 1.05%
  • 3 year: 1.15%
  • 4 year:  1.25%
  • 5 year: 1.50%
  • 6 year: 1.60%
  • 7 year: 1.70%
  • 10 year: 2.00%

These EQ Bank GIC rates are current at the time of writing. Please check their website for the current rates.

How to Buy EQ Bank GICs

To start investing in one of the EQ Bank GICs, you need to open an EQ Bank Savings Plus Account first. A new account can be easily opened online if you meet the requirements below:

  • Have a valid social insurance number (SIN)
  • A Canadian resident
  • At the age of majority in your province

Once your Savings Plus account opening is completed, you’ll be able to invest in any of the GICs of your choice with just a few clicks on their mobile app or web browser.

As mentioned earlier, the minimum investment amount for the GICs is only $100. This is low given that the minimum at many other banks is $500 and above.

Are EQ Bank GICs Safe?

Equitable Bank is a CDIC member. So deposits in your EQ Bank accounts and Equitable Bank are jointly covered by CDIC. But this protection is capped at $100,000 per insured category.

Non-registered accounts, joint accounts, TFSA and RRSPs are one of the 7 insured categories at CDIC. That means you can potentially put up to $100,000 in each of the 3 EQ Bank GIC types for a total coverage of $300,000 – assuming you don’t have any money with Equitable Bank.

You can learn more about CDIC protection and how to maximum your CDIC coverage in the linked posts.

EQ Bank GICs Alternatives

So how does EQ Bank GIC rates compare to other GIC providers. The table below provides a summary of its features and rates against a few other banks.

EQ BankAcceleRate FinancialEquity Credit Union
Minimum Balance$100$1,000$5,000
Deposit InsuranceCDICDGCMFSRAO
Non-registered GICsYesYesYes
Registered GICsTFSA, RRSPTFSA, RRSP, RRIFTFSA, RRSP, RRIF
1-year GIC Rate1.20%1.45%1.60%
2-year GIC Rate1.30%1.50%1.70%
3-year GIC Rate1.40%1.50%1.80%
4-year GIC Rate1.50%1.55%1.90%
5-year GIC Rate1.70%1.75%2.10%

Related: Equity Credit Union GIC Review

To learn more about the best GIC Rates across different account types, check the posts below:

Other EQ Bank Accounts and Products

Some of the other account types and products at EQ Bank include:

EQ Bank Savings Plus Account

This is EQ Bank’s flagship HISA with a current savings rate of 1.50%. Though you can get slightly higher rates at other online banks, the account outshines many of its peers because of its zero fees on everyday transactions. It works more like an hybrid account, combining the feature of a chequing and savings account.

EQ Bank TFSA and RSP Savings

These are the registered HISA offerings from EQ Bank. The current rates are 2.30% on both accounts. The accounts can be easily opened from your EQ Bank profile after opening the Savings Plus account.

Learn more in this EQ Bank TFSA and RSP Account Review

EQ Bank Joint Accounts

The EQ Bank Joint accounts lets you save with up to 3 other family and friends. Once you have an EQ Bank Plus Account, opening a joint account is as simple as inviting and adding your friends.

You still enjoy the best features of the regular savings account including a competitive interest rate and no-fee banking.

EQ Bank International Money Transfers

EQ Bank has partnered with TransferWise to offer its customers a simple and cheap way to send money internationally from within their EQ bank account.

The service currently supports 40 currencies to over 80 countries.

FAQs

Is EQ Bank covered by CDIC?

Yes, Equitable Bank is a CDIC member. That means, all your deposits at EQ Bank and Equitable Bank will be combined and guaranteed up to $100,000 in each of the 7 CDIC insured categories.

Does EQ Bank have TFSA and RSP GICs?

Yes, the EQ Bank TFSA GICs and RSP GICs were introduced late in 2020. Both existing and new clients can now invest on a tax-free or tax-deferred basis with the bank.

What is the minimum investment amount for EQ Bank GIC?

You need a minimum of $100 to start investing in any of the registered or non-registered GICs at EQ Bank.

Final Thoughts: EQ Bank GIC Review

If you already bank with EQ Bank and want to earn more on your savings, the GICs are a good place to start.

And if you’re a new client, you can easily open a new account online to enjoy the competitive interest rates and no-fee banking.

Related Posts:

EQ Bank GICs
4.5

Summary

EQ Bank provides some of the most competitive rates available to Canadians through its GIC with a minimum investment amount of just $100.

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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