Equity Credit Union GICs Review (Terms, Rates and Features)

Equity Credit Union is a little-known credit union in Ontario that provides some of the best GIC rates in Canada.

In this post, we’ll review its GIC offerings including the features, rates and more importantly, how they compare to other banks.

About Equity Credit Union

Equity Credit Union is an Ajax, Ontario based financial institution that has been operating since 1942. It provides a range of financial services to its members including deposit, investing, loans and mortgages.

It provides “no-fee banking” to its members online, in-person and over the phone. But there are some fees at the credit union, though they can easily be avoided.

Equity credit Union GICs review

Equity Credit Union GICs

Equity Credit Union isn’t known for competitive high interest savings accounts, but it more than makes up for it with its GICs.

It offers both Term deposits (short-term GICs with maturities below 1 year) and longer term GICs across several accounts.

Features of Equity Credit Union GICs

Below are the key features of the GICs at the credit union

Competitive GIC Rates: The GIC rates are currently one of the best in Canada across all the GIC terms

Deposit Guarantee: provided through FSRA (Ontario) with a limit of $250,000 on non-registered accounts

High Minimum Investment: Members require a starting amount of $5,000 to start investing in Equity Credit Union GICs

Choice of accounts: Investors can choose between the non-registered and registered GICs.

Also, the credit union offers no-fee banking on most everyday banking including 4 free Interac transactions per month.

Related: Best GIC Rates in Canada

Equity Credit Union GIC Rates

Equity Credit Union has the following GIC variants:

  • Non-registered GIC
  • TFSA GICs
  • RRSP GICs
  • RRIF GICs

You can currently get the same rate on all 4 GIC types. Here are the Equity Credit Union GIC Rates for the 1-year to 5-year GIC terms:

  • 1-year: 1.60%
  • 2-year: 1.70%
  • 3-year: 1.80%
  • 4-year: 1.90%
  • 5-year: 2.10%

For term deposits with maturities below 1 year, you can check the rate page here.

If you need to transfer your account in, Equity CU will cover the cost up to $75. Learn more about TFSA and RRSP transfer fees and the other financial institutions that reimburse them in this post.

How To Buy Equity Credit Union GICs

To start investing in Equity Credit Union GICs, the first step is to apply for the membership. This means buying membership shares of $20 which is refundable if you decide to leave the credit union.

Any resident of Ontario that is aged 18, the age of majority in the province, or older can apply to become a member. Once this is done, you can buy and invest in any of the GIC term that meets your needs.

You can go here to get started.

Is Equity Credit Union Safe?

As an Ontario based credit union, your deposits at Equity Credit Union enjoys one of the best deposit guarantees in Canada through FSRA Ontario.

Investments in the non-registered GICs are guaranteed up to $250,000. But they are 100% covered for your money in any of the registered GICs.

This protection is higher than the one provided for CDIC members. Meaning you can be rest assured that your funds are save and have more protection than the one from the big banks that are all CDIC members.

Related Posts:

Equity Credit Union vs Competitors

At the moment, Equity Credit union has the best GIC rates among all the other financial institutions I reviewed. Though the rates are promotional, the credit union has kept them higher than the GIC rates from other banks for a while.

It’s unclear when the rates will drop and by how much. But going by rates alone, Equity Credit Union is the best GIC provider in Canada at the moment.

The only drawback is that the minimum investment of $5,000 is on the high side. For example, you can buy a GIC with just $100 at EQ Bank, and most other banks and credit unions have a minimum amount of $500 – $1,000.

Equity Credit UnionEQ BankAcceleRate Financial
Minimum Balance$5,000$100$1,000
Deposit InsuranceFSRAOCDICDGCM
Non-registered GICsYesYesYes
Registered GICsTFSA, RRSP, RRIFTFSA, RRSPTFSA, RRSP, RRIF
1-year GIC Rate1.60%1.20%1.45%
2-year GIC Rate1.70%1.30%1.50%
3-year GIC Rate1.80%1.40%1.50%
4-year GIC Rate1.90%1.50%1.55%
5-year GIC Rate2.10%1.70%1.75%

Related: EQ Bank GICs Review

FAQs

Is Equity CU Safe

Yes, the credit union is regulated by the Financial Services Commission of Ontario and insured by Financial Services Regulatory Authority of Ontario (FSRA). In the unlikely event that the credit union becomes insolvent, your deposits in non-registered will be reimbursed up to $250,000 and fully for registered accounts.

Who can open an account with Equity Credit Union?

The credit union only serves Ontario residents aged 18 years or older

Closing Thoughts: Equity Credit Union GIC Review

If or when Equity Credit Union finally reduces its GIC rates, this post will be updated. But if you live in Ontario and looking to earn a rate that beats the ones on offer by even the best high interest savings accounts, you should check it out.

If you liked this Equity Credit Union GIC review, also check some of the other banks’ reviews below:

Related Posts:

Equity Credit Union GIC Review
4.8

Summary

Equity Credit Union GICs are one of the best GIC offerings available to Canadians looking to earn more on their investments

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.

Leave a Comment