In this article, I will explain what GICs are, how they vary from other forms of investments, and the best GIC rates in Canada for maturities of one year, three years, and five years, among other things. You’re at the right place if you’re thinking about buying Canadian GIC.
A guaranteed investment certificate (GIC) is a low-risk, interest-paying investment that matures over a defined period. For the best GIC rate, you should generally invest for a more extended period because interest rates fluctuate according to term length.
There are many other types of GICs, but we’ve focused on the most common: fixed-rate, non-redeemable GICS. These safe-term deposits require you to lock up your assets for a specified period and pay a preset interest rate in exchange.
The most outstanding GIC rates in Canada are not an excellent method to become wealthy, but they are a terrific way to protect your money.
When you invest in Guaranteed Investment Certificates (GICs), you don’t have to worry about stock market volatility since the CDIC guarantees you’ll get at least your initial deposit back. GICs are safe, secure investments with low risk and low reward.
Key Takeaways
- Features of Guaranteed Investment Certificates
- GIC Rates at the Best for a YearThe Overall Best GIC Rates 2023
- Some of The Top Canadian GIC Providers
- Learn about GIC Insurance
- Get Answers to the most frequent asked questions on GIC Rates
What Is GIC?
Guaranteed Investment Certificates (GICs) are an investment that let you put your money to work with a bank over a predetermined time frame or Term.
In return, you will get a guaranteed sum at maturity that will include both the invested principal and interest at the predetermined rate.
GICs are among the safest investments accessible to Canadians as a result.
An investment instrument known as a guaranteed investment certificate (GIC) offers you a guaranteed rate of return for a specific amount of time. GICs are available with periods ranging from 30 days to 10 years. Generally, the interest rate on a GIC increases with the length of the Investment.
The annual percentage yield (APY), or interest rate, of a GIC, is decided at the time of purchase. All possible are monthly, quarterly, semi-annually, yearly, or at maturity payments.
Guaranteed Investment Certificates: Features
A Guaranteed Investment Certificate (GIC) has the following essential characteristics:
- A specific minimum investment is necessary. Although it varies, it usually begins at $500.
- Depending on your savings objectives, you can invest in various terms. Terms might range from 30 days to 10 years in length.
- The interest rate you might anticipate earning will increase the longer the duration.
- The GIC investment doesn’t charge any fees.
- GICs are insured by the Canada Deposit Insurance Corporation (CDIC) or a provincial deposit insurer. Foreign currency GICs and GICs with maturities of more than five years were not eligible for CDIC coverage before April 30, 2020.
- At various predetermined intervals or maturity, interest payments may be paid. You could also be able to reinvest the interest until it matures automatically.
GIC Rates at the Best for a Year
With a rate of 4.80%, Peoples Trust presently offers the best 1-year GIC term, just edging out Tangerine and EQ Bank (whose rates are 4.70% and 4.60%, respectively).
Wyth Financial is providing 4.55%, while Simplii Financial and Wealth One Bank are providing somewhat lower 1-year GIC rates at 4.50%.
Along with these famous financial organizations, Oaken (4.40%), Accelerate Financial (4.40%), and Motive Financial provide attractive rates on the 1-year GIC period.
Along with these famous financial organizations, Oaken (4.40%), Accelerate Financial (4.40%), and Motive Financial provide attractive rates on the 1-year GIC period.
| Rank Financial Institution GIC Rate (%) Min. Investment ($) Deposit Insurance 1 Peoples Trust 4.80 1,000 CDIC 2 Tangerine 4.70 1 CDIC 3 EQ Bank 4.60 100 CDIC 4 Wyth Financial 4.55 500 CDIC 5 Simplii Financial 4.50 100 CDIC 6 Wealth One Bank Canada 4.50 1,000 CDIC 7 Motive Financial 4.49 1,000 CDIC 8 AcceleRate Financial 4.40 1,000 DGCM 9 Hubert Financial 4.40 1,000 DGCM 10 Oaken Financial 4.40 1,000 CDIC |
Best GIC Rates for 3-year Term
Equity Credit Union offers the most incredible 3-year GIC rate at 5.00%, followed by Tangerine, Peoples Trust, and Wealth One Bank at 4.75%.
EQ Bank, Wyth, and Motive Financial also offer 3-year GIC durations up to 4.70% interest. Additionally, several other banks, like Achieva Financial and Saven Financial, provide attractive rates of up to 4.60%
| Rank | Financial Institution | GIC Rate (%) | Min. Investment ($) | Deposit Insurance | ||||
| 1 | Equity Credit Union | 5.00 | 5,000 | FSRAO | ||||
| 3 | Tangerine | 4.75 | 1 | CDIC | ||||
| 4 | Peoples Trust | 4.75 | 1,000 | CDIC | ||||
| 5 | Wealth One Bank Canada | 4.75 | 1,000 | CDIC | ||||
| 1 | EQ Bank | 4.70 | 100 | CDIC | ||||
| 6 | Wyth Financial | 4.70 | 500 | CDIC | ||||
| 7 | Motive Financial | 4.70 | 1,000 | CDIC |
Best GIC Rates for 5-year Term
For their 5-year GIC term, Achieva Financial, AcceleRate Financial, and several other GIC providers are now providing a rate of 5.00%.
Motive Financial and EQ Bank both provide attractive 5-year GIC rates of 4.70% and 4.85%, respectively.
Other banks like Tangerine and Peoples Trust Financial offer rates over the 4.50% threshold.
See which other banks and credit unions are offering attractive 5-year GIC rates in the table below.
| Rank | Financial Institution | GIC Rate (%) | Min. Investment ($) | Deposit Insurance |
| 1 | Steinbach Credit Union | 5.00 | 500 | DGCM |
| 2 | AcceleRate Financial | 5.00 | 1,000 | DGCM |
| 3 | Achieva Financial | 5.00 | 1,000 | DGCM |
| 4 | Hubert Financial | 5.00 | 1,000 | DGCM |
| 5 | Outlook Financial | 5.00 | 1,000 | DGCM |
| 6 | Wealth One Bank Canada | 5.00 | 1,000 | CDIC |
| 7 | Equity Credit Union | 5.00 | 5,000 | FSRAO |
| 8 | Motive Financial | 4.85 | 1,000 | CDIC |
| 9 | Wyth Financial | 4.80 | 500 | CDIC |
| 10 | Laurentian Bank Canada | 4. 75 | 500 | CDIC |
Overall Best GIC Rates 2023
Here are some of the top GIC rates available right now, in general:
- Achieva Financial offers a 5-year GIC at 5.00%.
- 5.0% on a 3-year GIC at Equity Credit Union
- 4.80% from Peoples Trust on a one-year GIC
Consequently, combining some of these GIC rates is a wise choice if you want to ladder your GICs.
Equity Credit Union and Saven Financial provide some of the most excellent GIC rates for residents of Ontario. EQ Bank, Motive Financial, and Oaken are the top GIC suppliers for all other provinces.
They are the finest GIC providers for laddered GICs because they provide the best, or one of the best, GIC rates on periods ranging from 1 to 10 years.
| Overall Rank | Financial Institution | Min. Investment | Deposit Insurance |
| 1 | Equity Credit Union | 5,000 | Provincial |
| 2 | Wealth One Bank Canada | 1,000 | CDIC |
| 3 | Peoples Trust | 1,000 | CDIC |
| 4 | EQ Bank | 100 | CDIC |
| 5 | Wyth Financial | 500 | CDIC |
| 6 | Motive Financial | 1,000 | CDIC |
| 7 | Saven Financial | 1,000 | Provincial |
| 8 | Achieva Financial | 1,000 | Provincial |
| 9 | Tangerine | 1 | CDIC |
| 10 | AcceleRate Financial | 1,000 | Provincial |
The Top Canadian GIC Providers
The top banks and credit unions with the best GIC rates are as follows:
1. Equity Credit Union GICs
Since 1942, the Ontario-based Equity Credit Union has provided its member’s financial services.
It has one of the highest minimum investment amounts for GICs at $5,000. However, it makes up for this with its affordable charges for all the different terms.
The Financial Services Regulatory Authority of Ontario ensures Equity Credit Union. In registered accounts, deposits are protected up to $250,000 and are always protected.
Compared to EQ Bank’s rate of 2.00%, the savings account interest is relatively low at just 0.30%, paid quarterly.
The exact rate is available for registered accounts (TFSAs and RRSPs), and they will cover your transfer fees up to $75.
2. Accelerate Financial GICs
One of Manitoba’s top 5 credit unions and one subject to government regulation is Crosstown Civic Credit Union, whose division is Accelerate Financial.
It offers some of Canada’s most acceptable GIC rates with a $1,000 minimum commitment. At attractive rates, GICs may also be kept in registered accounts.
Your deposits are entirely protected by the Deposit Guarantee Corporation of Manitoba (DGCM), even if CDIC does not insure them.
3. Oaken Financial GICs
Home Bank, a division of Home Trust Company, is a supporter of Oaken Financial. It provides GICs with some of the most excellent rates in Canada, with maturities ranging from 1 year to 5 years.
Your deposits are protected since Home Bank and Home Trust Company are different CDIC members.
With a 1-year GIC rate of 4.40%, Oaken Financial is among the best GIC suppliers in the rating above.
The interest rate on its ordinary savings account is 3%.
4. Peoples Trust GICs
Vancouver, British Columbia-based Peoples Trust is a trusted firm that the CDIC insures. It is a branch of Peoples Group, a Canadian financial services provider that has been in business since 1985.
Peoples Trust offers attractive rates of 2.50% for its tax-free and electronic savings accounts.
5. Achieva Financial GICs
Online bank Achieva Financial is a Cambrian Credit Union subsidiary with its headquarters in Manitoba. DGCM, the provincial insurer, ultimately insures deposits.
The rate on its high-interest savings account is 2.40%.
GIC Insurance
The Canadian Deposit Insurance Corporation provides coverage and protection for most GICs (CDICs). Like bank deposits, the security is automated and doesn’t require any action on your part to activate it.
Therefore, in the event of a financial institution failure, CDIC would inform you and pay you your principal and interest within days.
But note that each financial institution’s CDIC protection is capped at $100,000 per category.
Therefore, if you have more than $100,000 invested in GICs with a single issuer, you should consider transferring part of your investments to other financial institutions, placing some in your spouse’s account, or forming a joint statement with them.
The provincial deposit insurer, not the CDIC, is responsible for protecting deposits in provincial credit unions. The quantities insured may vary, and each of the ten provinces and territories has its provincial insurer.
For instance, the provincial insurer, the Financial Services Regulatory Authority of Ontario, offers coverage for qualified deposits in registered accounts up to $250,000 and limitless amounts.
On the other hand, Manitoba and British Columbia provide complete deposit protection.
Surprisingly, credit unions under provincial regulation provide some of the best rates. Since provincial insurance protects you, you may feel secure knowing your money is safe.
Check Out Other Reads:
10 Ways to Rapidly Catch Up on Your Retirement Savings in Your 40s
30 Simple Ways to Save Money Fast on a Low Income
5 Best Investment Portfolio Management Software for Individuals
Conclusion
One of the safest investments accessible to Canadians is a GIC. That’s because your original Investment and, in most circumstances, your interest are guaranteed not to lose value.
Your deposits are also insured for up to $100,000 per qualified account if you purchase your GICs from a financial institution member of the Canadian Deposit Insurance Corporation (CDIC).
Purchases of GICs made through a credit union are covered by a regulatory body in the province or territory for up to $250,000 in insurance. For instance, the Deposit Insurance Reserve Fund (DIRF) for members of the Financial Services Regulatory Authority of Ontario.
Due to this coverage, you would be able to get your qualified deposits back if your financial institution went out of business.
FAQS
Should You Avoid 5-Year GIC?
If it better suits your objectives, they can also be employed for longer-term investments (five to ten years), particularly if you’re adopting a laddering plan.
Which Bank Is Best For GIC In Canada?
- The interest rate of 5.00% from Peoples Bank.
- 4.85% interest rate for Tangerine.
- 4.98% interest rate from Haventree Bank.
- Home Trust has an interest rate of 4.94%.
- 4.80% interest rate from VersaBank.
Where Can I Get 5% Interest On My Money?
- Varo: up to $5,000 at 5%.
- Current: 4% up to $6,000.
- Aspiration: 3 to 5 percent, up to $10,000.
- 5% up to $1,000 with NetSpend.
Do GIC Rates Change Daily?
At maturity, interest is paid after compounding daily and yearly.
What Is The Interest Rate For GIC At The Royal Bank?
| 1 year | 2.000 | 1.875 |
| 1.5 years | 2.250 | 2.125 |
| 2 years | 2.500 | 2.375 |
| 3 years | 2.750 | 2.625 |
Which Bank Is Better, Scotia Or CIBC, For GIC?
There are just a few significant distinctions between the goods and services offered by Scotiabank and CIBC. Compared to Scotiabank, CIBC has a broader network of branches and automated teller machines (ABMs).
Compared to Scotiabank, CIBC offers a wider variety and better savings on chequing accounts. Additionally, Scotiabank offers a special savings account deal than CIBC.
Is It A Good Time To Invest In GIC?
GICs are secure investments, so you shouldn’t expect to see large payments. However, you may also make use of both of these features. Therefore, if you’re asking whether investing in GICs is worthwhile, the answer is yes.
You can learn more from the video below:
About Author
- I am a professional article and e-book writer with 4 years of experience, I write on well research content on cryptocurrency, stocks, loans and finances.
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