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The Best GIC Rates in Canada for June 2024


Fact Checked

The best Guaranteed Investment Certificate (GIC) rates or High-Interest Savings Accounts (HISAs) are options for you if you are saving towards a short- to medium-term goal.

For example, say you plan to buy a home 3-5 years from now. You could put your money in the stock markets or a mutual fund; however, that’s a really risky undertaking.

If the financial markets suddenly tank (as they have in recent times), your funds could lose as much as half or more of their value without warning.

GICs and HISAs are relatively safe havens to park your money when you need it to stay intact and earn at least some return. They are also great for investors with low-risk tolerance.

Below, we cover some of the best GIC rates in Canada in 2024.

Compare GIC Rates in Canada

Financial Institution1-year2-year3-year4-year5-year
EQ Bank5.054.904.654.504.50
Motive Financial5.405.204.904.654.65
Oaken Financial5.355.204.804.604.50
People’s Trust5.104.754.654.554.45
Achieva Financial5.004.804.604.504.40
Hubert Financial5.004.854.604.504.40
Ideal Savings5.004.854.604.504.40

The Best GIC Rates in Canada

The list below focuses on the most popular GIC-type, i.e. traditional, non-registered, fixed-rate, non-redeemable GICs. As you can imagine, none of the best rates are offered by big banks. If you want a great GIC rate, your best bet is an online-only bank or credit union.

Canada Deposit Insurance Corporation (CDIC) offers protection to deposits owned by customers of its member firms up to $100,000, while credit unions are insured provincially, and offer protection on up to 100% of your deposits, regardless of the amount.

EQ Bank GIC Rates

EQ Bank is CDIC-insured via its parent bank, Equitable Bank. It is popular for offering one of the best non-promotional High-Interest Savings Account rates (at 4.00%) and GIC packages.

EQ Bank clients have access to a mobile app that enables banking from anywhere, and the minimum deposit for GICs is an industry-low at $100.

Equitable Bank is a member of CDIC, and your deposits are protected for up to $100,000. Get more details in this EQ Bank review.

Here are the current best GIC rates offered by EQ Bank:

  • 3 months: 3.75%
  • 6 months: 4.55%
  • 9 months: 4.80%
  • 1 year: 5.05%
  • 2 years: 4.90%
  • 3 years: 4.65%
  • 4 years: 4.50%
  • 5 years: 4.50%

Get an EQ Bank GIC.

or Visit EQ Bank for a 3.00% Savings Rate.

Tangerine Bank GIC Rates

Tangerine Bank is CDIC insured via its parent – Scotiabank. Tangerine offers a full suite of banking products, including mortgages, investments, chequing, savings, GICs, loans, and credit cards.

It offers general non-registered GICs (CAD and USD) and GICs for TFSA and RRSP accounts.

Tangerine GIC rates as of this writing include:

  • 1-year GIC: 5.15%
  • 2-year GIC: 3.60%
  • 3-year GIC: 4.25%
  • 4-year GIC: 4.25%
  • 5-year GIC: 4.25%

Read review: Best Tangerine GICs and Rates

Motive Financial GIC Rates

Motive Financial is CDIC-insured through the Canadian Western Bank. Founded in 1984, Motive Financial is an online-only bank with great HISA and GIC rates. Its current GIC offerings include:

  • 1-year GIC: 5.40%
  • 2-year GIC: 5.20%
  • 3-year GIC: 4.90%
  • 4-year GIC: 4.65%
  • 5-year GIC: 4.65%

Read Review: Motive Financial

Oaken Financial GIC Rates

When you purchase a GIC from Oaken Financial, you can choose either Home Bank or Home Trust Company as your issuer. Both financial institutions are separate members of CDIC, so you can enjoy separate insurance coverage for your funds.

Its current GIC offerings include:

  • 1-year GIC: 5.35%
  • 2-year GIC: 5.20%
  • 3-year GIC: 4.80%
  • 4-year GIC: 4.60%
  • 5-year GIC: 4.50%

Read Review: Oaken Financial

Peoples Trust GIC Rates

Founded in 1985, Peoples Trust offers mortgages, credit cards, GICs, and commercial loans. It is CDIC-insured and offers the following GIC rates:

  • 1-year GIC: 5.10%
  • 2-year GIC: 4.75%
  • 3-year GIC: 4.65%
  • 4-year GIC: 4.55%
  • 5-year GIC: 4.45%

Read Review: Peoples Trust

Achieva Financial GIC Rates

Achieva Financial is operated by Cambrian Credit Union, and deposits are insured by DGCM. It was established in 1998 and offers savings and deposit products in RRSP, RRIF, regular savings, and TFSA accounts. Their current GIC rates are:

  • 1-year GIC: 5.00%
  • 2-year GIC: 4.80%
  • 3-year GIC: 4.60%
  • 4-year GIC: 4.50%
  • 5-year GIC: 4.40%

Read Review: Achieva Financial

Hubert Financial GIC Rates

Hubert Financial is operated by Sunova Credit Union, one of the top 100 credit unions in Canada. Your deposits are insured via Sunova under the Deposit Guarantee Corporation of Manitoba (DGCM).

Its product offerings include savings, TFSA, US$ savings, and investing via VirtualWealth. Current GIC rates include:

  • 1-year GIC: 5.00%
  • 2-year GIC: 4.85%
  • 3-year GIC: 4.60%
  • 4-year GIC: 4.50%
  • 5-year GIC: 4.40%

Read Review: Hubert Financial

motusbank GIC Rates

motusbank is a digital bank owned by the popular Meridien Credit Union. It offers some of the best savings, GIC, mortgage, and personal loan rates in Canada. Motusbank’s current GIC rates are:

  • 1-year GIC: 4.00%
  • 2-year GIC: 3.35%
  • 3-year GIC: 3.25%
  • 4-year GIC: 3.05%
  • 5-year GIC: 3.00%

Read Review: motusbank

Ideal Savings GIC Rates

Ideal Savings is owned by Carpathia Credit Union and was launched in 2016. Deposits are insured without limit through Carpathia under DGCM. Its current rates are:

  • 1-year GIC: 5.00%
  • 2-year GIC: 4.85%
  • 3-year GIC: 4.60%
  • 4-year GIC: 4.50%
  • 5-year GIC: 4.40%

Read Review: Ideal Savings

TD GIC Rates

TD offers several GICs, including Cashable and Non-Cashable GICs, Market-Growth GICs, and USD GICs.

You can choose from GICs with simple or compound interest, as well as registered and non-registered options. Terms are from 30 days to 5 years, and the minimum investment is $500 or $1,000, depending on your chosen GIC.


CIBC offers a wide selection of GICs, including registered and non-registered options.

You can choose from Cashable, Escalating-Rate, Market-Linked, Variable-Rate GICs, and more. With a Flexible GIC, you can access your money early. You will also find Bonus Rate GICs with better interest rates.

Terms are from 1 to 5 years, and the minimum investment is from $500 to $2,500.

RBC GIC rates

You will find several options for GICs at RBC, including Guaranteed-Return GICs, Interest Rate-Linked GICs, and Equity Rate-Linked GICs for investments.

There is a wide selection of terms from 30 days to 10 years, and while the minimum investment starts at $500, it is $1,000 or $5,000 for some GICs. There is also a minimum investment of $100,000 for terms under 30 days.

Scotiabank GIC Rates

Scotiabank offers Cashable, Non-Redeemable, Market-Linked, and Personal Redeemable GICs. Several terms are available, depending on the type of GIC.

For example, Long-Term Non-Redeemable GICs have terms from 1 to 5 years, but Short-term Non-Redeemable GICs start at 30 days.

Interest can be compounded annually, semi-annually, or monthly, and these come with different rates. The minimum investment is $500.


BMO offers a wide range of GICs, including Cashable, Non-Cashable, USD, and Market-Linked GICs, and you can choose from registered and non-registered options. There is even an Air Miles GIC that you can use to earn one Air Mile per month for every $1,000 invested.

The terms for GICs last from 6 months to 10 years, and the minimum investment starts at $1,000 and increases to $5,000 for some GICs.

What is a GIC?

Guaranteed Investment Certificates (GICs) are a type of investment that pays you a guaranteed rate of return over a specified period of time.

They are safe investments and, as such, work well in conservative investment portfolios or can represent some portion of the fixed-income component of any portfolio.

GICs are similar to savings accounts, where you deposit money and are promised an annual interest rate by the bank.

That said, unlike a traditional savings account, a traditional GIC usually locks in your money for the period of time specified in your contract, i.e. your funds are not cashable (or redeemable) until maturity.

For example, a 1-year fixed rate non-redeemable GIC means that if you want to withdraw your funds before 1 year has elapsed, you will pay a penalty.

There are GICs that offer more flexibility and allow you to withdraw your money before maturity. These are known as Cashable or Redeemable GICs. The interest rates offered on these GICs are lower than what is available for a similar non-redeemable GIC and an identical term.

The interest rate on most GICs is fixed. However, there are also options to earn variable interest  (variable-rate GICs) or even have the return tied to the performance of the stock market (market-linked GICs).

A GIC can be held in registered (TFSA, RRSP, RESP, RRIF) or non-registered accounts.

For more on the basics of GICs, check out my post on GICs and their place in your investment portfolio.

The advantages and disadvantages of GICs are similar to those of high-interest savings accounts. For more information on their pros and cons, read – The Best High-Interest Savings Accounts in Canada.

Types of GICs in Canada

There are many types of GICs on the market. They have various features, investment terms, and payment options. Examples include:

1. Fixed or Traditional GIC

This is the most common type of GIC available. It’s simple – you invest your funds for a fixed interest rate that is paid at specified periods or at maturity.

2. Cashable or Redeemable GIC

This GIC allows you to withdraw your funds or cancel your contract before the end of your term without penalty.

Cashable GICs are good if you want flexibility for accessing funds should you need to. They may come with a brief lock-in period (e.g. a month) when you cannot cash out.

3. Non-Cashable GIC

Unlike their cashable counterpart, funds are locked in for the duration of your contract. They are also referred to as non-redeemable GICs.

If you want to withdraw funds before a non-cashable or non-redeemable GIC has matured, you will have to pay a penalty fee.

Non-cashable GICs attract a higher return than cashable GICs.

4. Foreign Currency GIC

These GICs are denominated in foreign currency, such as the U.S. dollar (U.S. GIC) and can be used as a vehicle to hold your foreign currencies while earning some interest.

GICs denominated in a currency other than the Canadian dollar are not covered by CDIC insurance.

5. Laddered GIC

This GIC-type allows you to stagger the maturity dates of your investment, such that you can take advantage of higher interest rates and fluctuations while still having access to some of your funds periodically.

For example, say you want to invest $25,000 in a laddered GIC. You can choose to put $5,000 in each of a 1-year, 2-years, 3-years, 4-years, and 5-years GIC.

This way, 20% of your portfolio will mature each year. When your 1-yr GIC matures, you can either cash out, renew it for the same rate, or re-invest for another term with a more attractive interest rate.

Instead of tying down your $25,000 investment in a GIC with one maturity, you ladder it for flexibility and potentially higher return.

GIC Terms

GICs come with different terms ranging from a few months to several years.

Popular terms are 6 months, 1 year, 2 years, 3 years, 4 years, and 5 years. Longer terms (up to 10 years) are also available. As mentioned earlier, the longer the term, the higher the interest that is paid.

GICs also come with different interest payment options: Interest may be paid monthly, quarterly, semi-annually, annually, or at maturity.

GIC Investment Options

GICs can come in handy for various investing/savings purposes, including:

A. GIC as Regular Savings

GICs can be used to hold funds that you want to keep liquid while gaining some returns in the meantime. For instance, if you plan on keeping cash in your savings account for 1 year before using it, a 1-yr GIC may offer better returns.

GICs may not be appropriate for an emergency fund if it means you’re penalized for wanting to withdraw your funds before the maturity date.

A high-interest savings account may be more suitable for short-term savings goals and may even offer similar or higher interest rates compared to a GIC, depending on the term length.

B. GIC in Registered Accounts

You can hold GICs in your registered investment accounts, including TFSAs, RRSPs, RDSPs, and RESPs. Depending on what assets you have in your TFSA, it can be tailored to serve as a source of funds for emergency needs.

GICs can fit into most portfolios to account for some of the fixed-income asset allocations.

Pros and Cons of GICs


  • Guaranteed savings, so you know your investment won’t decrease.
  • You can use GICs in your TFSA, RRSP, and more.
  • It’s straightforward to invest in GICs.
  • They are a good option for people with a low risk appetite.
  • GICs are offered by many banks, with different interest rates and terms available.


  • The interest rate may be guaranteed, but it is typically quite low compared to other options.
  • Even when you earn interest, you could still lose purchasing power because of inflation.
  • GICs are not great for liquidity should you need fast access to your funds.
  • They are not the best way to grow your money over the long term, which is where stocks and bonds are more appealing.

GIC vs Bonds

Bonds are where you essentially lend money to the government, and the face value is repaid when it matures, plus interest.

They are considered a safe way to save and provide attractive yields, with better returns over the long term than GICs.

Bonds offer better liquidity because you can exit them quickly, which can make them more appealing if you need access to your funds on short notice.

GICs are more straightforward for most people and may be more convenient as a short-term option. But both are low risk and offer steady returns.

Related: GIC vs Bond

GIC vs Mutual Funds

Mutual funds are also relatively straightforward and are easy for most people to access in Canada. They also offer reasonably low-risk options.

Mutual funds do not guarantee a return like GICs. They consist of a pool of investments, including stocks and bonds, that are managed by a financial advisor. So, you can invest in multiple and diverse assets, lowering your portfolio’s overall risk.

Compared to GICs, mutual funds generally involve management fees and other operating costs, which could make them more expensive.

Mutual funds are more accessible if you need to withdraw funds quickly.


High Interest Savings Accounts (HISAs) provide higher interest rates than standard savings accounts.

You can set one up at your bank or credit union, and they are good for saving for short-term goals where you want more access to your funds than you would get with a GIC.

There may be rules to consider when saving in these accounts, like a maximum withdrawal amount, minimum deposits, and monthly fees. Interest earned in a HISA is taxed at your marginal tax rate, similar to GICs.


While a GIC is an investment product, a tax-free savings account (TFSA) is a tax-free way to hold funds and investments, and that can include GICs.

Because a TFSA is tax-free, you could choose to invest in a GIC in your TFSA, and it can then count towards the contribution limit, and the interest earned is tax-free.

Related: GIC vs TFSA.


A registered retirement savings plan (RRSP) is a government-registered account that Canadians can use to save for retirement.

You do not pay tax on RRSP contributions, and instead, you defer it until you withdraw the funds, which is often in retirement.

Again, you can hold a GIC in your RRSP, so you won’t be taxed on interest until you withdraw it. If you want to use a GIC to save for retirement, an RRSP GIC may be a good option.


The first home savings account (FHSA) allows you to save up tax-free for your home.

With an FHSA, you can contribute up to $40,000 over your lifetime. The qualified investments you can hold in an FHSA are the same as for a TFSA, including GICs.

Doing this gives you another way to enjoy the benefits of a GIC without paying taxes, and it’s especially useful if you are saving up to buy your first home.

Even if you don’t buy a home, you can later transfer FHSA funds to an RRSP, which won’t affect your contribution room.

Related: Best FHSA Investments.

How to Calculate GIC Rates

When opening a GIC account, you will see upfront how much interest you will earn over the term. These are usually fixed, but they can also be variable.

You can also use a GIC calculator online to calculate how much interest you will earn on your investment in dollars.

If the interest is compounded annually, this calculation applies:

  • Initial Investment x (Interest Rate+1)Years

So, if you save $10,000 at an Interest rate of 4% for 5 years, the calculation would be:

  • $10,000 x ((1.04)(1.04)(1.04)(1.04)(1.04)) = $12,166.53

Minus the initial deposit of $10,000, this leaves you with $2,166.53 in earnings.

How to Choose a GIC in Canada

There are several factors to consider when choosing a GIC in Canada:

  • Choose the type of GIC that meets your savings goals and risk appetite. This could be a cashable GIC, redeemable GIC, market-linked GIC, etc.
  • Decide whether you want to put it into a registered account like an RRSP or TFSA.
  • Choose between a fixed-rate and variable-rate GIC.
  • Choose a term that works for you. If you need access to the funds sooner, a shorter term is better, and you could find a term as little as 30 days.
  • Compare interest rates and work out how much you will earn.
  • Make sure you are aware of the minimum investment, which is usually $500 or more.
  • Understand any fees you might have to pay, such as an early withdrawal penalty.

How to Buy a GIC

Purchasing a GIC at your bank or credit union is very easy. Nearly every financial institution offers these, so check with your bank first, but also look around to compare rates.

You can then apply directly online, deposit funds, and start earning.

Are GIC Investments Safe?

GICs are one of the safest investments available for conservative/risk-averse investors.

They are guaranteed by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 (principal + interest) per depositor per eligible financial institution.

As long as you don’t have more than $100,000 in GIC in each of your banks, you should be covered if they become insolvent. GICs purchased through some credit unions and other non-bank financial institutions may be insured through provincial deposit insurance plans.

For example, if you open a GIC at a credit union in Alberta, it’s covered by the Credit Union Deposit Guarantee Corporation (CUDGC). In BC, it’s covered by the Credit Union Deposit Insurance Corporation (CUDIC). Check what is available in your province and how much is covered.

GIC Risk vs. Reward

GICs are also considered safe because your return is usually guaranteed from the start.

If you understand the dynamics between risk and reward, then you know that the higher the potential reward, the higher the risk, and vice-versa.

GICs are low-risk, and as such, the expected return is often significantly lower than “riskier” options like stocks, mutual funds, ETFs, etc.

Persistent low inflation rate numbers and generally lower interest rates mean that GIC numbers stay low. If you lock into a long-term GIC (say 5 years) and interest/inflation rates rise, you could start earning a negative return if the inflation rate exceeds your GIC interest rate.

For the potentially higher rates available through the market or index-linked GICs, your expected return becomes variable, increasing your investment risk.

GIC Taxation

If a GIC is not held in a tax-sheltered account, e.g. RRSP or TFSA, tax is due on any interest income earned. This income is taxed like your other regular income, using your marginal tax rate.

GIC Interest Income Taxation Example

If you invest $50,000 in a 1-year GIC that pays 1% interest at maturity, you will earn an interest income of $500. If your marginal tax rate is – say 43.75%, it implies that:

  • Interest Income Earned: $50,000 x 1% = $500
  • Marginal Tax rate: 43.75%
  • Tax Payable: $500 x 43.75% = $218.75
  • After-Tax Income: $500 – $218.75 = $281.25
  • After-Tax Return: $281.25/$50,000 = 0.56%

A measly 0.56% return has been generated after tax.

GIC Rates Canada FAQs

Which bank has the best GIC rates in Canada?

The best GIC rates are always changing as banks vary their rates in relation to the Bank of Canada’s benchmark rate, their in-house prime rate, demand for deposits and loans, economic factors, and other factors. In general, you will find the most competitive GIC rates to be offered by online banks like EQ Bank and credit unions.

Can you lose money in a GIC?

GICs are guaranteed investments which means you are guaranteed to get back your principal plus a certain percentage of interest. If inflation exceeds the return you earn on a GIC, you could lose purchasing power. The returns for market-linked GICs are tied to the performance of the benchmark index or security, and your rate of return is not fixed.

What are the risks of a GIC?

GICs are generally safer than stocks, ETFs, and mutual funds. Some of the risks you face include liquidity risk in that you are unable to cash out your money tied in a non-redeemable GIC before maturity without incurring a penalty. Also, the rate of return on your GIC may not keep up with the inflation rate.

Learn about the best GIC rates available in Canada and start earning more in returns on your money. #GIC #interestrates #savemoney #invest #moneytips #makemoney #personalfinance

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Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

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27 thoughts on “The Best GIC Rates in Canada for June 2024”

  1. Gravatar for Enoch Omololu

    @Helen: Yes, rates have started to inch up slowly. I doubt we will near a rate as high as 5.25% again anytime soon, but you never know with these things. Cheers.

  2. Gravatar for Enoch Omololu

    Hey Steve. They will probably rise some more in the coming months which is great. That being said, anyone who has to take out a personal loan or credit should also expect to pay more in interest, since banks are going to make money, whichever way!

  3. Gravatar for Dean D Kline

    outlook financial also give good rates

  4. Gravatar for sharon Thompson

    Since the last few weeks interest rates, bonds, GIC’s have really decreased alot. It seems rates are now going to be cut by the Bank of Canada and U.S. federal Reserve. I am hearing alot of talk about this.

    Is it possible we will see GIC rates for 5 years go below 2% ans shorter terms in the 1% to below 2% again? It is getting really bad for responsible, prudent savers and looks like a repeat of the last past period of 2015 to 2017 when rates were getting very low.

    • Gravatar for Enoch Omololu

      @Sharon: Yes, rates are trending down again and we could see them drop below 2% for sure. It’s hard to predict the future though.

  5. Gravatar for Michael Charbonneau

    Can I invest a larger amount than 5500 from TFSA to GIC with no penalty? Or If larger amount does only the 5500 plus interest get deposited back or all of invested amount.

    • Gravatar for Enoch Omololu

      @Michael: The amount of money you can invest in your TFSA depends on your available contribution room. If you have been eligible to contribute to a TFSA account since it’s inception in 2009 but have not contributed at all, you have $63,500 in TFSA contribution room.

      You can check your total contribution room for 2019 by visiting your CRA MyAccount.

  6. Gravatar for Alejandro Tawwater

    Hi there! I simply wish to give an enormous thumbs up for the good info you’ve gotten right here on this post. I will probably be coming again to your blog for more soon.

  7. Gravatar for geevee

    Let me correct myself. I missed some of the fine print myself. The Tangerine promotional 2.75 percent annual rate over 6 months is 1.375 percent, but then continues at their regular rate of 1.1 percent. So that works out to 1.375 plus 1.1 for a combined annual rate of 2.475 percent.

    • Gravatar for Donald

      No, I think the interest rate works out to 2.0625% on a yearly basis, and not 2.475%. Assume you have $100 to invest for a year at 2.75%, you would earn $2.75 on a yearly basis, But since you only earn this interest rate for 6 months, the amount you actually earn would be half of this, or $1.375. Also, assume you had a $100 to invest for a year at 1.375%, you would earn $1.375 on a yearly basis, or $0.6875 for 6 months. Now if you add $1.375 for the first 6 months to the 0.6875 for the second 6 months, you earn $2.0625, or 2.0625% on the $100 over a period of a year.

  8. Gravatar for FELIX AOMREORE

    Hi, Omololu
    I’ll be retiring (at 60yrs)from my home country in July and arrive Winnipeg hopefully with my retirement benefits(approx CAD$100K) sometime in late August 2020.
    1. What would be my best investment option, assuming I am unable to find work

    2. In the case of the GIC which would be the best? Registered or not registered, given my circumstance.

    By the way, I am a PR that did a soft landing in Winnipeg September 2019, and only came back to my home country to complete my work term from which i will be retiring in July 2020 as indicated above.


    • Gravatar for Enoch Omololu

      @Felix: For retirement investing, it’s best to discuss with a financial planner as they would take a close look at your overall finances in order to work out a longterm plan.

      In general, you would want to maximize the use of tax-free and tax-deferred registered accounts where possible, such as TFSAs and RRSPs. If you haven’t worked in Canada, you would not have accumulated RRSP contribution room.

      With regards to a TFSA, I think you would already have a contribution room of $12,000 ($6,000 for 2019 and $6,000 for 2020) since you became a permanent resident in 2019.

      GICs are great for holding money you may need in the short to medium-term. For longer-term investing, you may want to take a look at mutual funds and ETFs while keeping it in mind that your portfolio should reflect your risk tolerance and investment time frame.

      If you decide to work, your earned income creates RRSP contribution room and you can contribute to an RRSP until around age 70, after which it has to either be withdrawn as cash, converted into an RRIF, or used to purchase an annuity. You can also do a combination of these options.

      This post below may shed more light on how retirement income works in Canada:


      I hope this helps.

  9. Gravatar for Ly

    Hello Enoch, I’m just beginning to learn all about GIC. For tangerine, GIC is protected by CDIC but not mutual funds? Thank you

    • Gravatar for Enoch Omololu

      @Ly: You are right. Deposits such as chequing, savings, HISA, and GICs are protected by CDIC. Your mutual fund account is protected through the Canadian Investor Protection Fund (CIPF) if your investment provider is a member.

  10. Gravatar for Jessica Cook

    Really informative article. thanks!

  11. Gravatar for bRENT pEYTON

    Interest rates should have went up a few years back, now we are in a crisis and have no interest rates to drop to save the economy. .Maybe next time around bank of Canada will rise rates back to normal around 10% in case we have another calamity if it is not already to late.

  12. Gravatar for Barb

    Hello Enoch,

    Is it a good idea to invest $300,000 into a GIC at the EQ Bank for 6 months or one year? Their GIC rates for 6 months is 2.05% however the CDIC insurance only covers up to $100,000. In case of a bankruptcy will I lose $200,000 temporarily or permanently? I am with a Credit Union bank but the GIC rates are not good. Maybe I’m with the wrong Credit Union and need to switch to another credit union, I just don’t know what to do.

    Trudeau government signed a bill in 2016 regarding not helping to fund any banks if there should be any future crash or bankruptcy. This makes me nervous and feels like something is going to happen but “when” is the question. Also, will it be a safe transaction from fiat money to whatever new currency they have in store for us in the very near future should the fiat become obsolete.

    Thanks so much,

    • Gravatar for Enoch Omololu

      @Barb: The possibility that a Canadian bank will go bankrupt is very slim. That said, you could consider divvying up your cash between banks if it makes you sleep better at night (there are several online banks offering good GIC rates at the moment and one other okay option for short-term savings is Neo Financial).

      See my detailed review here: https://www.savvynewcanadians.com/neo-savings-account-review/

  13. Gravatar for jerry nie

    By looking into Canadian Bank, it is hard to see how the compounded interest rate calculated, rarely any bank explain it in detail.
    Is it compounded daily? monthly? yearly?
    For 5 year GIC of interest 4% , is it annually 4% compounded every year ? or after the 5 year term it has 5% return rate?
    No one bank bother to explain.
    As a very solid banking systems, maybe they don’t need customers to know.

    • Gravatar for Enoch Omololu, MSc (Econ)

      @Jerry: Generally, for a GIC with a 1-year term, interest is calculated annually and paid out once at maturity. If the GIC has a term of more than one year, interest is either calculated annually (simple interest if paid annually) or may be compounded annually (if paid out at maturity). For some GICs, simple interest is calculated semi-annually or based on a specific number of days, etc.

      For the 5-year GIC scenario, if it’s paid annually, the 4% is calculated annually and paid out to you at the end of the year (e.g. Year 1). For the second year, 4% is calculated on your new balance and paid out at the end of that year, etc. Or it may be compounded annually, and you get the interest and capital after 5 years. Best to check with the bank to clarify how they calculate their interest.

  14. Gravatar for Rob

    Great article. Is there anymore specific set up instructions for GICs. I see the best rates above so I could contact them. For other institutions is just a matter of calling them up to compare rates and have them send the paper work?

  15. Gravatar for Manish

    Hi Enoch I just read your interview with Rob Carrick of Globe and Mail on Canadian Banking System and how new comers to Canada get aquatinted to the Canadian banking system. I came to Canada in 2003 and I had to put down money in a secured GIC to get a credit card in Canada. Things have now changed and all major financial institutions pre approve new comers for credit cards without any security deposit. I do work for one of the major banks in Canada.

  16. Gravatar for Munir Bawa

    Thank you very much Enoch for sharing informative newsletter. Easy to understand banking finances/investments.
    Munir Bawa

    • Gravatar for Enoch Omololu, MSc (Econ)

      @Munir: You are welcome. Glad to hear you find it useful.

  17. Gravatar for Max

    Oaken no longer offer 6% rate

  18. Gravatar for Rodney Todd


    I have been receiving your newsletter for the past couple of years now and have never seen you (to my knowledge) make reference to the following type of GIC:

    My wife and I each have a non-registered, insured, redeemable GIC with Sun Life Financial @ 5.2% for 1 year. We primarily chose this financial institution because their GIC can be assigned a “beneficiary” …… thereby, avoiding probate in the event of death. Our TSFA were maxed out and since we are seniors, we had to find another suitable “guaranteed” investment source whereby, our daughter could access the money

    • Gravatar for Enoch Omololu, MSc (Econ)

      @Rodney: This is a good rate and its insurance contract can help with estate settlement. GIC products offered by insurance companies are somewhat of a niche and often include features you don’t see with regular GICs. I haven’t done any research on them and will look into them more closely.

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