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
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: 5.00%
- 2-year: 4.85%
- 3-year: 4.80%
- 4-year: 4.75%
- 5-year: 4.70%
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:
- CDIC : Understanding How Deposit Insurance Works In Canada
- How To Maximize CDIC Coverage On Your Savings
Equity Credit Union vs Competitors
For a while, Equity Credit union has the best GIC rates among all the other financial institutions I reviewed. Though the rates are promotional, the credit union kept the higher GIC rates going banks for a while.
They still offer promotional rates but the rates have now dropped below some of the other GIC providers.
Going by rates alone, Equity Credit Union is still one of best GIC provider in Canada. A big 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.
Also, it is only available to Ontario residents.
| Equity Credit Union | EQ Bank | Motive Financial | |
|---|---|---|---|
| Minimum Balance | $5,000 | $100 | $1,000 |
| Deposit Insurance | FSRAO | CDIC | CDIC |
| Non-registered GICs | Yes | Yes | Yes |
| Registered GICs | TFSA, RRSP, RRIF | TFSA, RRSP | TFSA, RRSP, RRIF |
| 1-year GIC Rate | 5.00% | 5.00% | 5.050% |
| 2-year GIC Rate | 4.85% | 4.55% | 4.700% |
| 3-year GIC Rate | 4.80% | 4.30% | 4.500% |
| 4-year GIC Rate | 4.75% | 4.20% | 4.400% |
| 5-year GIC Rate | 4.70% | 4.20% | 4.350% |
EQ Bank offers slightly higher GIC Rates on the registered accounts. Check the post below for details.
Related: EQ Bank GICs Review
FAQs
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.
The credit union only serves Ontario residents aged 18 years or older
Closing Thoughts: Equity Credit Union GIC Review
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
Summary
Equity Credit Union GICs are one of the best GIC offerings available to Canadians looking to earn more on their investments
