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Published August 11, 2022

Best GIC & Term Deposit Rates in Canada of 2022

The best GIC rates offer a safe, secure way to grow your money over a set term.

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

A guaranteed investment certificate (GIC) is a secure, low-risk investment product that earns interest over a set time period. Interest rates vary by term length, and you generally need to invest your money for a longer term to get the best GIC rate.

There are many types of GICs, but our selections focus on the most common type: fixed-rate, non-redeemable GICS. These safe term deposits require you to lock away your funds for a set term and, in exchange, pay a fixed rate of interest.

 

Summary of the Best GICs rates in Canada

Best 1-year GICs rates

Best 3-year GICs rates

  • Best Non-registered 3-year GIC: EQ Bank, 4.45% interest rate
  • Best Non-registered 3-year GIC: Motive Financial, 4.83% interest rate
  • Best Long term Non-redeemable 3-year GIC: Motusbank, 4.60% interest rate
  • Best 3-year GIC: Oaken Financial, 4.60%-4.70% interest rate
  • Best 3-year GIC: WealthONE bank, 4.75% interest rate

Best 5-year GICs rates

  • Best Non-registered 5-year GIC: EQ Bank, 4.65% interest rate
  • Best 5-year GIC: Laurentian bank, 4.30% interest rate
  • Best Non-registered 5-year GIC: Motive Financial, 5.00% interest rate
  • Best Long term Non-redeemable 5-year GIC: Motusbank, 4.85% interest rate
  • Best 5-year GIC: Oaken Financial, 4.90%-5.00% interest rate

Best GICs rates in Canada

Financial Institution1-year Term3-year Term5-year TermMinimum Deposit
AcceleRate Financial4.25%4.50%5.00%$1,000
Achieva Financial4.30%4.65%5.00%$1,000
Alterna Bank3.90%4.25%4.60%$500
BMO Bank of Montreal3.65% - 3.75%4.00% - 4.10%4.20% - 4.30%$1,000
Bridgewater Bank4.00%4.33%4.60%$5,000
Canadian Tire Bank3.55%4.10%4.47%$1,000
Canadian Western Bank3.54%4.20%5.00%$1,000
CIBC Bonus Rate GIC4.25%4.40%4.50%$1,000
Coast Capital Savings3.95%4.30%4.40%$500
EQ Bank4.35%4.45%4.65%4.65%
Haventree Bank4.11%3.78%3.84%$5,000
HSBC Bank Canada3.00%3.60%4.00%$500
Hubert’s Happy Savings4.25%4.50%5.00%$1,000
ICICI Bank4.25%4.00%4.00%$1,000
Ideal Savings4.05%4.55%5.05%$1,000
Laurentian Bank of Canada4.00%4.30%4.50%$500
LBCDigital.ca4.25%4.30%4.50%$100
Manulife Bank3.80% - 3.90%4.15% - 4.25%4.25% - 4.35%$2,500
MAXA Financial4.00%4.60%5.10%$500
Motive Financial4.43%4.83%5.00%$1,000
Motusbank4.15%4.60%4.85%$100
National Bank of Canada2.00%3.00%3.50%$500
Oaken Financial4.05% - 4.15%4.60% - 4.70%4.90% - 5.00%$1,000
Outlook Financial4.00%4.50%5.00%$1,000
Peoples Bank of Canada4.50%4.80%5.00%$1,000
Royal Bank of Canadaup to 4.00%2.625% - 2.75%up to 4.50%$1,000
Scotiabank1.90% - 2.00%1.80% / 4.70%-4.75%**3.15% - 3.25%$500
Simplii Financial4.25%4.10%4.20%$100
Tangerine Bank4.50%4.60%4.45%None
TD Bank4.50%4.60%4.45%$1,000
VersaBank4.15%4.30%4.30%$1,000
WealthONE Bank of Canada4.30%4.75%5.00%$1,000
Wyth Financial4.30%4.60%4.75%$1,000

*Rates reflect the APY of non-redeemable, non-registered fixed-rate GICs that pay interest annually
**For Scotiabank Preferred Package* and Ultimate Package** Customers only

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Best 1-year GICs rates in Canada

EQ Bank Non-registered 1 Year GIC

  • Term Length
    1 Year
  • Interest Rate
    4.35%
    As of August 4, 2022
  • Minimum Deposit
    $100
  • Bonus Offer
    N/A
  • Why we like it
    • EQ Bank, a trademark of Equitable Bank is an online bank based in Toronto that offers chequing and savings accounts, GICs and registered plans.
    • Each EQ Bank GIC starts with a minimum deposit of $100, making it convenient for a new investor to explore these GICs at a competitive fixed rate.
  • Product Details
    • Non-registered and non-redeemable.
    • Must have an EQ savings account in order to get an EQ GIC.
    • When the term ends and your GIC reaches the maturity date, the funds will be placed in your Savings Plus Account (the one from which your initial investment was funded). You will receive an email or SMS alert notifying you of the GIC maturity.
    • Term options range from 3-months to 10-years. You’re the one in charge of your savings, that includes choosing whether short or long term GICs are right for you.
    • RSP and TFSA GICs are also available. Before you buy, you’ll need to open an RSP Savings Account or TFSA Savings Account.
    • GIC options let you lock in any of our amazing rates, so no matter what happens, that rate is yours.
    • Low minimum deposit. So you can start investing in GICs with as little as $100.
    • You choose how your interest is paid out, either at maturity or annually.
    • A GIC in seconds. As long as you have available funds in your Savings Plus Account, you can literally buy a GIC in seconds.
    • You can buy up to 20 GICs. Each GIC purchase must be for at least $100, and can be up to a maximum of $100,000. Customers can hold up to $500,000 in GICs, excluding interest earned.
    • *EQ Bank GICs are non-redeemable.
    • For GIC terms of less than one year, simple interest is calculated on a per diem basis and paid at maturity. For GIC terms equal to one year, simple interest is calculated on a per annum basis and paid at maturity. For GIC terms of over one year, not including 15 and 27 month terms, interest is calculated on a per annum basis and paid either annually (simple interest) or at maturity (compounded annually).
    • For GIC terms of 15 and 27 months, interest is calculated on a per annum basis, compounded annually and paid solely at maturity. In all cases, interest is accrued for the entire GIC term.
    • Maximum 20 GICs per customer. Per GIC investment limit of $100,000. Aggregate GIC investment limit of $500,000.
    • Rates are calculated on a per annum basis and are subject to change at any time.
    • Equitable Bank is a member of CDIC. EQ Bank is a trade name of Equitable Bank.

Motive Financial Non-registered 1 Year GIC

  • Term Length
    1 Year
  • Interest Rate
    4.43%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Motive Financial is an online Canadian Western Bank (CWB) division that offers chequing and savings accounts, registered plans and GICs.
    • All Motive Financial GICs offer a high fixed interest rate and the flexibility to receive annual interest payments or compound till maturity. Customers over the age of 57 have the option to receive monthly interest payments into a Motive Savings account from GICS with a term of at least 12 months.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, a maturity notice will be mailed to you approximately one month prior to your Motive GIC renewal date. Unless otherwise specified, your GIC will mature and renew/roll over at the posted rate for the date that the term is specified to renew.
    • Terms range from 12 months (1 year) to 120 months (10 years).
    • TFSA and RRSP GICs are also available.
    • Whatever you're saving for, our Motive® GIC is here to help you get there faster.
    • Lock in your savings and feel secure.
    • Receive annual interest payments or compound until maturity.
    • Competitive interest rates.
    • Guaranteed interest.
    • A minimum balance of $1,000 is required.
    • The holder has the option to receive interest paid annually into a Motive Savings Account or to have the interest compounded annually and paid at maturity. On Motive GICs with a term of at least 12 months, customers over the age of 57 also have the option of having interest paid monthly into a Motive Savings account.
    • Interest is compounded annually and paid at maturity. Interest will accrue on deposited funds as of the date funds are deposited. Interest rates and rate tiers are subject to change without notice. Interest is paid in the currency of the account. All rates quoted are annual interest rates.
    • Deposits may be insurable by the Canada Deposit Insurance Corporation.

Oaken Financial 1 Year GIC

  • Term Length
    1 Year
  • Interest Rate
    4.05%-4.15%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Oaken Financial is backed by Home Bank and powered by Home Trust Company and offers a digital app and online banking services for HISAs and GIC.
    • Oaken GICs offer choice through competitive rates for a variety of terms and types, such as short-term, long-term and cashable GICs available for both registered and non-registered plans, plus security with CDIC coverage as per applicable limits.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, Oaken will follow the instructions you provide on what you want to do with your investment at maturity. This can include redeeming the GIC and depositing the funds into the account of your choice, or automatically renewing the GIC for the same term and at the current interest rate.
    • Term options range from 30 days to 5 years, and are available as cashable and non-cashable GICs.
    • All Oaken GICs are eligible for inclusion in government registered accounts, including Registered Savings Plans (RSP), Tax Free Savings Accounts (TFSA) and Retirement Income Funds (RIF).
    • Oaken GICs offer choice, flexibility and security with non-registered GICs.
    • Flexible payment schedules. Choose the interest payment schedule that suits your needs best – whether that’s monthly, semi-annually, annually or at maturity.
    • Select from two issuers: Home Bank and Home Trust Company, both of which are separate members of CDIC.
    • Deposit a little or a lot: The minimum deposit is $1,000.
    • Oaken GICs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits.

Peoples Bank Long Term 1 Year GIC

  • Term Length
    1 Year
  • Interest Rate
    4.50%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Peoples Trust and Peoples Bank of Canada are subsidiaries of the Peoples Group. Peoples Trust offers savings accounts, registered and non-registered GICs, and mortgage and lending services.
    • The Peoples Bank GICs are transferable and assignable with no transfer, setup or service fees, making them a nice choice for those who prefer to manage their investments without worrying about additional fees.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, and if your instructions for the maturing GIC are not received by the bank, the principal and interest will automatically renew for the same term at the posted rate in effect on the maturity date. After the renewal, you will have 10 business days to either cancel the transaction or change the term of your account.
    • Terms range from short-term investments of 30 to 270 days or long-term investments of 1-5 years.
    • Competitive rates are guaranteed for the full term.
    • Short-term investments with interest paid at maturity.
    • Long-term investments with your choice of annual or compounding interest.
    • Transferable and assignable.
    • Electronic monthly statements.
    • Minimum deposit of $1,000.
    • No transfer, setup or service fees.
    • Eligible for deposit insurance from the Canada Deposit Insurance Corporation (CDIC).

WealthONE Bank of Canada 1 Year GIC

  • Term Length
    1 Year
  • Interest Rate
    4.30%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.
    • WealthONE Bank’s non-redeemable GICs offer 6-month to 5-year terms and can be included in a registered TFSA, RSP, or RIF as well as in non-registered products.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends and the GIC reaches maturity, WealthONE Bank will pay the principal amount of the GIC plus interest, according to your disposition of funds instructions. If no maturity instructions have been received by WealthOne, the proceeds of the matured GIC may be renewed for the same terms and conditions unless WealthONE Bank receives a request to cancel within ten business days from the date of renewal.
    • Term options range from 6-month to 5-years.
    • WealthONE GICs are fixed-term GICs that are non-redeemable prior to the Maturity Date.
    • An Early Redemption fee is $20.00 plus foregone interest. For more information, please check our Account Terms and Conditions for Savings Accounts and GIC Investments.
    • Can be included in your registered TFSA, RSP, or RIF as well as non-registered products.
    • Minimum $1,000 investment.
    • Eligible for Canada Deposit Insurance Corporation (CDIC) Insurance. CDIC limits apply.
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Best 3-year GICs rates in Canada

EQ Bank Non-registered 3 Year GIC

  • Term Length
    3 Years
  • Interest Rate
    4.45%
    As of August 4, 2022
  • Minimum Deposit
    $100
  • Bonus Offer
    N/A
  • Why we like it
    • EQ Bank, a trademark of Equitable Bank is an online bank based in Toronto that offers chequing and savings accounts, GICs and registered plans.
    • Each EQ Bank GIC starts with a minimum deposit of $100, making it convenient for a new investor to explore these GICs at a competitive fixed rate.
  • Product Details
    • Non-registered and non-redeemable.
    • Must have an EQ savings account in order to get an EQ GIC.
    • When the term ends and your GIC reaches the maturity date, the funds will be placed in your Savings Plus Account (the one from which your initial investment was funded). You will receive an email or SMS alert notifying you of the GIC maturity.
    • Term options range from 3-months to 10-years. You’re the one in charge of your savings, that includes choosing whether short or long term GICs are right for you.
    • RSP and TFSA GICs are also available. Before you buy, you’ll need to open an RSP Savings Account or TFSA Savings Account.
    • GIC options let you lock in any of our amazing rates, so no matter what happens, that rate is yours.
    • Low minimum deposit. So you can start investing in GICs with as little as $100.
    • You choose how your interest is paid out, either at maturity or annually.
    • A GIC in seconds. As long as you have available funds in your Savings Plus Account, you can literally buy a GIC in seconds.
    • You can buy up to 20 GICs. Each GIC purchase must be for at least $100, and can be up to a maximum of $100,000. Customers can hold up to $500,000 in GICs, excluding interest earned.
    • *EQ Bank GICs are non-redeemable.
    • For GIC terms of less than one year, simple interest is calculated on a per diem basis and paid at maturity. For GIC terms equal to one year, simple interest is calculated on a per annum basis and paid at maturity. For GIC terms of over one year, not including 15 and 27 month terms, interest is calculated on a per annum basis and paid either annually (simple interest) or at maturity (compounded annually).
    • For GIC terms of 15 and 27 months, interest is calculated on a per annum basis, compounded annually and paid solely at maturity. In all cases, interest is accrued for the entire GIC term.
    • Maximum 20 GICs per customer. Per GIC investment limit of $100,000. Aggregate GIC investment limit of $500,000.
    • Rates are calculated on a per annum basis and are subject to change at any time.
    • Equitable Bank is a member of CDIC. EQ Bank is a trade name of Equitable Bank.

Motive Financial Non-registered 3 Year GIC

  • Term Length
    3 Years
  • Interest Rate
    4.83%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Motive Financial is an online Canadian Western Bank (CWB) division that offers chequing and savings accounts, registered plans and GICs.
    • All Motive Financial GICs offer a high fixed interest rate and the flexibility to receive annual interest payments or compound till maturity. Customers over the age of 57 have the option to receive monthly interest payments into a Motive Savings account from GICS with a term of at least 12 months.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, a maturity notice will be mailed to you approximately one month prior to your Motive GIC renewal date. Unless otherwise specified, your GIC will mature and renew/roll over at the posted rate for the date that the term is specified to renew.
    • Terms range from 12 months (1 year) to 120 months (10 years).
    • TFSA and RRSP GICs are also available.
    • Whatever you're saving for, our Motive® GIC is here to help you get there faster.
    • Lock in your savings and feel secure.
    • Receive annual interest payments or compound until maturity.
    • Competitive interest rates.
    • Guaranteed interest.
    • A minimum balance of $1,000 is required.
    • The holder has the option to receive interest paid annually into a Motive Savings Account or to have the interest compounded annually and paid at maturity. On Motive GICs with a term of at least 12 months, customers over the age of 57 also have the option of having interest paid monthly into a Motive Savings account.
    • Interest is compounded annually and paid at maturity. Interest will accrue on deposited funds as of the date funds are deposited. Interest rates and rate tiers are subject to change without notice. Interest is paid in the currency of the account. All rates quoted are annual interest rates.
    • Deposits may be insurable by the Canada Deposit Insurance Corporation.

motusbank Long Term Non-Redeemable 3 Year GIC

  • Term Length
    3 Years
  • Interest Rate
    4.60%
    As of August 4, 2022
  • Minimum Deposit
    $100
  • Bonus Offer
    N/A
  • Why we like it
    • Motusbank is a full-service digital bank that is the online division of Meridian Credit Union, which has been serving Ontarians for over 75 years. Motusbank offers chequing and savings accounts, mortgages, registered plans, GICs, investing, and a home equity line of credit loan.
    • The minimum deposit for all GICs can be as low as $100.
  • Product Details
    • Non-registered and non-redeemable.
    • When your term ends and the GIC matures, funds get deposited to your bank account. And depending on where you do your banking, you may have to talk to a customer service rep or personal banker to withdraw from your GIC.
    • Terms ranging from 30 days to 5 years. 3 Year and 5 Year Escalator GICs are also available.
    • Eligible for registered (TFSA, RRSP, RRIF) and non-registered plans.
    • A great rate guaranteed for your entire term.
    • Minimum investments of as little as $100.
    • Interest is calculated and accrued daily. To calculate the daily interest, Motusbank divides the annual interest by 365. Motusbank multiplies that figure by the GIC book value to determine how much interest to accrue. Interest is paid on maturity for GICs that do not pay interest during their term.
    • Redemption is only permitted within the first 30 days and no interest is payable. Early redemption prior to maturity is not permitted after the first 30 days.
    • Eligible deposits insured up to $100,000 by Canada Deposit Insurance Corporation (CDIC) coverage.

Oaken Financial 3 Year GIC

  • Term Length
    3 Years
  • Interest Rate
    4.60%-4.70%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Oaken Financial is backed by Home Bank and powered by Home Trust Company and offers a digital app and online banking services for HISAs and GIC.
    • Oaken GICs offer choice through competitive rates for a variety of terms and types, such as short-term, long-term and cashable GICs available for both registered and non-registered plans, plus security with CDIC coverage as per applicable limits.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, Oaken will follow the instructions you provide on what you want to do with your investment at maturity. This can include redeeming the GIC and depositing the funds into the account of your choice, or automatically renewing the GIC for the same term and at the current interest rate.
    • Term options range from 30 days to 5 years, and are available as cashable and non-cashable GICs.
    • All Oaken GICs are eligible for inclusion in government registered accounts, including Registered Savings Plans (RSP), Tax Free Savings Accounts (TFSA) and Retirement Income Funds (RIF).
    • Oaken GICs offer choice, flexibility and security with non-registered GICs.
    • Flexible payment schedules. Choose the interest payment schedule that suits your needs best – whether that’s monthly, semi-annually, annually or at maturity.
    • Select from two issuers: Home Bank and Home Trust Company, both of which are separate members of CDIC.
    • Deposit a little or a lot: The minimum deposit is $1,000.
    • Oaken GICs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits.

WealthONE Bank of Canada 3 Year GIC

  • Term Length
    3 Years
  • Interest Rate
    4.75%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • WealthONE Bank of Canada is a Canadian Schedule 1 bank that serves all Canadians including the newcomers. It has two offices in Toronto and Vancouver and offers online banking, a mobile app and competitive interest rates.
    • WealthONE Bank’s non-redeemable GICs offer 6-month to 5-year terms and can be included in a registered TFSA, RSP, or RIF as well as in non-registered products.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends and the GIC reaches maturity, WealthONE Bank will pay the principal amount of the GIC plus interest, according to your disposition of funds instructions. If no maturity instructions have been received by WealthOne, the proceeds of the matured GIC may be renewed for the same terms and conditions unless WealthONE Bank receives a request to cancel within ten business days from the date of renewal.
    • Term options range from 6-month to 5-years.
    • WealthONE GICs are fixed-term GICs that are non-redeemable prior to the Maturity Date.
    • An Early Redemption fee is $20.00 plus foregone interest. For more information, please check our Account Terms and Conditions for Savings Accounts and GIC Investments.
    • Can be included in your registered TFSA, RSP, or RIF as well as non-registered products.
    • Minimum $1,000 investment.
    • Eligible for Canada Deposit Insurance Corporation (CDIC) Insurance. CDIC limits apply.
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Best 5-year GICs rates in Canada

EQ Bank Non-registered 5 Year GIC

  • Term Length
    5 Years
  • Interest Rate
    4.65%
    As of August 4, 2022
  • Minimum Deposit
    $100
  • Bonus Offer
    N/A
  • Why we like it
    • EQ Bank, a trademark of Equitable Bank is an online bank based in Toronto that offers chequing and savings accounts, GICs and registered plans.
    • Each EQ Bank GIC starts with a minimum deposit of $100, making it convenient for a new investor to explore these GICs at a competitive fixed rate.
  • Product Details
    • Non-registered and non-redeemable.
    • Must have an EQ savings account in order to get an EQ GIC.
    • When the term ends and your GIC reaches the maturity date, the funds will be placed in your Savings Plus Account (the one from which your initial investment was funded). You will receive an email or SMS alert notifying you of the GIC maturity.
    • Term options range from 3-months to 10-years. You’re the one in charge of your savings, that includes choosing whether short or long term GICs are right for you.
    • RSP and TFSA GICs are also available. Before you buy, you’ll need to open an RSP Savings Account or TFSA Savings Account.
    • GIC options let you lock in any of our amazing rates, so no matter what happens, that rate is yours.
    • Low minimum deposit. So you can start investing in GICs with as little as $100.
    • You choose how your interest is paid out, either at maturity or annually.
    • A GIC in seconds. As long as you have available funds in your Savings Plus Account, you can literally buy a GIC in seconds.
    • You can buy up to 20 GICs. Each GIC purchase must be for at least $100, and can be up to a maximum of $100,000. Customers can hold up to $500,000 in GICs, excluding interest earned.
    • *EQ Bank GICs are non-redeemable.
    • For GIC terms of less than one year, simple interest is calculated on a per diem basis and paid at maturity. For GIC terms equal to one year, simple interest is calculated on a per annum basis and paid at maturity. For GIC terms of over one year, not including 15 and 27 month terms, interest is calculated on a per annum basis and paid either annually (simple interest) or at maturity (compounded annually).
    • For GIC terms of 15 and 27 months, interest is calculated on a per annum basis, compounded annually and paid solely at maturity. In all cases, interest is accrued for the entire GIC term.
    • Maximum 20 GICs per customer. Per GIC investment limit of $100,000. Aggregate GIC investment limit of $500,000.
    • Rates are calculated on a per annum basis and are subject to change at any time.
    • Equitable Bank is a member of CDIC. EQ Bank is a trade name of Equitable Bank.

LBC Digital 5 Year GIC

  • Term Length
    5 Years
  • Interest Rate
    4.30%
    As of August 4, 2022
  • Minimum Deposit
    $100
  • Bonus Offer
    N/A
  • Why we like it
    • LBC Digital is the personal digital banking arm of Laurentian Bank of Canada and offers a HISA, a chequing account and GICs.
    • Each LBC Digital GIC starts with a minimum deposit of $100, making it convenient for a new investor to explore these GICs at a competitive fixed rate.
  • Product Details
    • All term GICs are non-registered and non-redeemable.
    • When the GIC reaches maturity, it is automatically renewed unless you have told LBC Digital what to do with your funds. You have the right to cancel it 10 business days from the renewal date. At the time of purchasing the GIC, you can instruct the bank to deposit the principal and interest payable into your account. These instructions can be updated at any point during the term. Alternatively, a cheque or draft payable to you can be delivered at your risk to the last address indicated in LBC Digital’s records.
    • Term options range from 1 to 5 years.
    • You’re required to have a HISA or Chequing account with LBC Digital before you fund your GIC.
    • Interest rates are per annum. Interest is either compounded annually (paid at maturity) or paid annually to the LBC Digital account of your choice.
    • You can apply for an LBC Digital GIC in minutes and fund it with a minimum of $100.
    • Deposits up to a maximum of $100,000 (principal and interest combined) per depositor per insured category are eligible for CDIC coverage.

Motive Financial Non-registered 5 Year GIC

  • Term Length
    5 Years
  • Interest Rate
    5.00%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Motive Financial is an online Canadian Western Bank (CWB) division that offers chequing and savings accounts, registered plans and GICs.
    • All Motive Financial GICs offer a high fixed interest rate and the flexibility to receive annual interest payments or compound till maturity. Customers over the age of 57 have the option to receive monthly interest payments into a Motive Savings account from GICS with a term of at least 12 months.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, a maturity notice will be mailed to you approximately one month prior to your Motive GIC renewal date. Unless otherwise specified, your GIC will mature and renew/roll over at the posted rate for the date that the term is specified to renew.
    • Terms range from 12 months (1 year) to 120 months (10 years).
    • TFSA and RRSP GICs are also available.
    • Whatever you're saving for, our Motive® GIC is here to help you get there faster.
    • Lock in your savings and feel secure.
    • Receive annual interest payments or compound until maturity.
    • Competitive interest rates.
    • Guaranteed interest.
    • A minimum balance of $1,000 is required.
    • The holder has the option to receive interest paid annually into a Motive Savings Account or to have the interest compounded annually and paid at maturity. On Motive GICs with a term of at least 12 months, customers over the age of 57 also have the option of having interest paid monthly into a Motive Savings account.
    • Interest is compounded annually and paid at maturity. Interest will accrue on deposited funds as of the date funds are deposited. Interest rates and rate tiers are subject to change without notice. Interest is paid in the currency of the account. All rates quoted are annual interest rates.
    • Deposits may be insurable by the Canada Deposit Insurance Corporation.

motusbank Long Term Non-Redeemable 5 Year GIC

  • Term Length
    5 Years
  • Interest Rate
    4.85%
    As of August 4, 2022
  • Minimum Deposit
    $100
  • Bonus Offer
    N/A
  • Why we like it
    • Motusbank is a full-service digital bank that is the online division of Meridian Credit Union, which has been serving Ontarians for over 75 years. Motusbank offers chequing and savings accounts, mortgages, registered plans, GICs, investing, and a home equity line of credit loan.
    • The minimum deposit for all GICs can be as low as $100.
  • Product Details
    • Non-registered and non-redeemable.
    • When your term ends and the GIC matures, funds get deposited to your bank account. And depending on where you do your banking, you may have to talk to a customer service rep or personal banker to withdraw from your GIC.
    • Terms ranging from 30 days to 5 years. 3 Year and 5 Year Escalator GICs are also available.
    • Eligible for registered (TFSA, RRSP, RRIF) and non-registered plans.
    • A great rate guaranteed for your entire term.
    • Minimum investments of as little as $100.
    • Interest is calculated and accrued daily. To calculate the daily interest, Motusbank divides the annual interest by 365. Motusbank multiplies that figure by the GIC book value to determine how much interest to accrue. Interest is paid on maturity for GICs that do not pay interest during their term.
    • Redemption is only permitted within the first 30 days and no interest is payable. Early redemption prior to maturity is not permitted after the first 30 days.
    • Eligible deposits insured up to $100,000 by Canada Deposit Insurance Corporation (CDIC) coverage.

Oaken Financial 5 Year GIC

  • Term Length
    5 Years
  • Interest Rate
    4.90%-5.00%
    As of August 4, 2022
  • Minimum Deposit
    $1,000
  • Bonus Offer
    N/A
  • Why we like it
    • Oaken Financial is backed by Home Bank and powered by Home Trust Company and offers a digital app and online banking services for HISAs and GIC.
    • Oaken GICs offer choice through competitive rates for a variety of terms and types, such as short-term, long-term and cashable GICs available for both registered and non-registered plans, plus security with CDIC coverage as per applicable limits.
  • Product Details
    • Non-registered and non-redeemable.
    • When the term ends, Oaken will follow the instructions you provide on what you want to do with your investment at maturity. This can include redeeming the GIC and depositing the funds into the account of your choice, or automatically renewing the GIC for the same term and at the current interest rate.
    • Term options range from 30 days to 5 years, and are available as cashable and non-cashable GICs.
    • All Oaken GICs are eligible for inclusion in government registered accounts, including Registered Savings Plans (RSP), Tax Free Savings Accounts (TFSA) and Retirement Income Funds (RIF).
    • Oaken GICs offer choice, flexibility and security with non-registered GICs.
    • Flexible payment schedules. Choose the interest payment schedule that suits your needs best – whether that’s monthly, semi-annually, annually or at maturity.
    • Select from two issuers: Home Bank and Home Trust Company, both of which are separate members of CDIC.
    • Deposit a little or a lot: The minimum deposit is $1,000.
    • Oaken GICs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits.
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Methodology

NerdWallet Canada selects the best guaranteed investment certificates based on several criteria, including annual percentage yields, minimum deposit, redeemability, account type and more. Only fixed-rate, non-registered and non-redeemable guaranteed investment certificates that are available in more than one province are considered for this list.

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What to know about GICs

By Barry Choi

GICs appeal to many Canadians because they are guaranteed and considered safe investments. That said, certain types of GICs require you to lock in your funds, making it difficult to access your money until the end of the term or the maturity date.

What is a GIC?

A guaranteed investment certificate (GIC) is an investment product that gives you a guaranteed rate of return for a set period of time. You can purchase GICs with terms as short as 30 days or as long as 10 years. Generally, the longer you invest your money, the higher the GIC interest rate.

The amount of interest a GIC earns, or annual percentage yield (APY), is determined at the time of purchase. It may be paid monthly, quarterly, semi-annually, annually, or at maturity. When your GIC matures or reaches the end of its term, you receive your principal back, plus any outstanding interest.

What is a GIC account?

GICs are a type of investment that you must be purchased within an account. The common types of investment accounts used to buy GICs are standard, non-registered investment accounts and registered accounts, like registered retirement savings plans (RRSPs) or tax-free savings accounts (TFSAs).

Each type of account has different tax implications, so you’ll want to do additional research or ask your financial institution whether a registered or non-registered GIC is best for you.

Once you’ve set up your accounts, purchasing GICs is a straightforward process.

What is the difference between GICs and term deposits?

Term deposits and GICs are technically two similar products in the same asset class. Both pay a fixed interest rate for a fixed term. Both also typically require a minimum deposit to get started.

Some institutions use “term deposits” to describe both GICs with terms for one year or more and other types of investments held for less than a year. However, many financial institutions use the names interchangeably or simply refer to all of their guaranteed investments as “GICs.”

How does a GIC work?

When you buy a GIC, you’re lending money to a financial institution. Because the financial institution is borrowing money from you, they’ll pay you interest for the privilege. You can think of it as a role reversal compared to borrowing money from the bank.

The financial institution that issues the GIC then takes that money and lends it to its customers at a higher rate of interest, such as through a mortgage or line of credit — this is how you and the financial institution both end up making money on your GIC investment.

Generally, GICs lock in your principal deposit until the end of the term since the bank is lending the money they’ve borrowed from you to someone else. They need to protect their cash flow and make sure they have enough money coming in to cover what’s going out. That said, cashable and redeemable GICs allow you to access your money before the end of the term, but they may come with a lower interest rate and early withdrawal fees.

Once your GIC matures, you can withdraw your principal plus the interest earned. Alternatively, you can choose to reinvest those funds and purchase a new GIC automatically. This approach allows you to take advantage of compound interest by making additional interest on your initial investment on top of the interest you’ve already earned.

How much interest will you earn on a GIC?

The amount of interest you’ll earn on a GIC depends on the following:

  • The financial institution. Each financial institution offers different GIC interest rates, so where you purchase your GICs matters.
  • Length of term. GICs with longer terms typically pay more interest than short-term GICs.
  • How the interest is calculated. GIC interest rates can be fixed, variable, or linked to the market. The type of interest rate and how it’s affected by outside factors will impact your overall returns.

For instance, let’s say you decide to invest $10,000 into a 1-year, non-redeemable GIC with a fixed interest rate of 3%. At the end of the term, you’d get your initial investment of $10,000, plus $300 in interest. If you had chosen a different interest rate, term length, or type of GIC, you would have earned more or less interest.

How secure is a GIC investment?

GICs are considered one of the safest investments available to Canadians. That’s because your principal investment is guaranteed not to lose value; in most cases, your interest is also guaranteed.

In addition, if you purchase your GICs from a financial institution that’s a Canadian Deposit Insurance Corporation (CDIC) member, your deposits are covered for up to $100,000 per eligible account.

GICs purchases through a credit union are insured for up to $250,000 through the province or territory’s regulatory authority. For example, the Financial Services Regulatory Authority of Ontario has a Deposit Insurance Reserve Fund (DIRF) for members.

This coverage means that if your financial institution were to fail, you would be able to recover your eligible deposits.

How to invest in a GIC

Investing in GICs is easy once you review your options and make some decisions. It’s best to shop around, as each financial institution offers GICs with different terms and interest rates. Then you can choose a GIC that best fits your timeline and offers an attractive interest rate.

You can purchase GICs from the following sources:

  • Banks and trust companies. People may gravitate towards Canada’s “Big Five,” sometimes “Big Six,” banks. While there’s nothing wrong with these major financial institutions, smaller banks, online-only banks, and trust companies typically offer better rates to attract your business.
  • Credit unions and caisses populaires. Credit unions, or caisses populaires in Quebec, have become more popular banking options for Canadians. They also tend to offer GICs at competitive rates.
  • Online discount brokerages. Do-it-yourself investors can purchase GICs directly through their discount brokerage accounts. You’ll have to search for what’s available for you to buy on your discount brokerage platform, as it may not list all the types of GICs available in the market.
  • Independent deposit brokers. Similar to mortgage brokers, independent deposit brokers work with several financial institutions to find you the best GIC rates. Once you choose a GIC, you’ll buy it directly from the financial institution. The broker is basically a middleman.

How to open a GIC account and buy a GIC

When you want to purchase GICs from the financial institution where you do your day-to-day banking, setting up a GIC account is straightforward. First, you’ll need to set up a registered or non-registered account, which you can usually open online, over the phone, or at your local branch.

If you already have an RRSP, TFSA, or non-registered account, you can purchase GICs at any time. Every financial institution has a dedicated section for GICs on its website. You can see what’s available and buy the GIC that best fits your goals. If you’re new to the process and want some assistance, a bank advisor can help you set up your account and purchase GICs.

Keep in mind that every financial institution and service provider may have its own rules in place. There may be a minimum deposit amount required or even specific times when you can buy GICs online.

Documents required to open a GIC account

The documents required to open a GIC account are no different than those required to open a bank account. You would need to provide the following:

  • Two forms of valid ID (passport, driver’s licence, birth certificate)
  • Proof of residential address (utility or cellphone bill)
  • Social insurance number (SIN)

You generally don’t have to be a Canadian citizen to open a GIC account, but you usually need to be the age of majority in the province or territory in which you reside. You will also have to fund your account before purchasing GICs.

How to choose the best type of GIC investment for you

Before you start to invest and purchase a GIC, be sure you understand what you’re getting. There are different GIC interest rates, terms, and options available. The best GIC for someone else may not necessarily be the best one for you. You want to pick a GIC that lines up with your goals. Here’s what to consider as you shop around.

GIC terms

GIC terms are the length of your investment. You can typically purchase GICs with terms between 30 days and 10 years.

Long-term GICs

Long-term GICs are GICs that have terms of one year or more. These types of GICs are typically suitable for people with long investment time frames or who are looking for stability in their portfolios.

Short-term GICs

Short-term GICs, sometimes known as term deposits, have terms of less than one year, so 30 to 364 days. These types of GICs are aimed at people who want access to their funds sooner but would still like to earn some interest.

GIC interest rates

GIC interest rates are what you’ll be paid for investing your money in a financial institution. Knowing how they will calculate your interest is vital since it’ll affect the overall performance of your GICs.

Fixed-rate GICs

With fixed-rate GICs, you’ll know exactly how much interest you’ll earn before investing your money. However, you’ll need to look into when the bank will your interest, as it can be annually, semi-annually, or monthly.

Variable-rate GICs

Variable-rate GICs, sometimes known as prime-linked GICs, protect your principal while giving you a variable interest rate linked to the financial institution’s prime rate. If rates go up or down, the amount of interest your GIC earns will be adjusted accordingly.

Market-linked GICs

With market-linked GICs or equity-linked GICs, the amount of interest you’ll earn is tied to the underlying stock market index. When the markets are doing well, your interest rate increases. Even if the markets go on a downturn and your interest rate decreases, your principal investment is protected, just like a regular GIC.

GIC redeemability

While all GICs have set terms, some types allow you to access your funds before the term is up. This flexibility can help people who are faced with an emergency and need immediate access to their capital.

Cashable GICs

Cashable GICs typically have a locked-in window of 30-90 days. Once that period is up, you can access your funds early if you need them. If you choose to withdraw money from the GIC, you will receive interest calculated up to the day you withdrew funds.

Redeemable GICs

With redeemable GICs, you can access your money at any point after you make the purchase. While the redeemable route sounds like the clear winner, these types of GICs typically penalize early redemptions. As a result, you’d likely receive much less interest than you would at the end of the term.

Non-redeemable GICs

As the name implies, non-redeemable GICs lock in your funds until the term is up. As these types of GICs are not liquid, the financial institution compensates you with higher interest rates than cashable and redeemable GICs.

Types of GIC accounts

GICs are investment products purchased within various account types.

Registered vs. non-registered GICs: what’s the difference?

Registered and non-registered GICs are held in different types of accounts. Since RRSPs and TFSAs are types of registered accounts, GICs held within them are registered. Conversely, GICs held in a non-registered account are referred to as non-registered.

TFSA GICs

You can purchase GICs within your TFSA as long as you follow the rules and limits set by the government. There’s no tax break when you make a TFSA contribution, but there are also no taxes to be paid when you withdraw once your GIC matures.

RRSP GICs

RRSP contributions offer an immediate tax break. You can then use the funds in your RRSP to buy GICs. You won’t pay taxes on any interest earned while the money is in the account. However, you’ll be taxed at your marginal tax rate when you eventually withdraw the funds.

GIC investment strategies and options to consider

Since GICs are a safe investment product, they can be suitable for investors who want to protect their capital or balance their portfolios. Consider a few strategies and options to get the most out of GIC investing.

GIC ladder

A GIC ladder is a common GIC investment strategy in which you split your initial investment into equal pools, with each portion invested into GICs with different terms and interest rates.

For example, if you had $25,000 to invest, you could split it into five pools of $5,000. You would then buy five GICs, each of which has a different term: one, two, three, four, and five years. When each GIC matures, you would reinvest the proceeds into a new 5-year GIC or use the money as needed.

Buying GICs with different terms allows you to take advantage of higher interest rates. Over time, this strategy enables you to potentially earn more interest than the interest earned by investing the whole amount in a single 1-year GIC.

In addition, a GIC ladder can reduce risk. Interest rate changes won’t affect your overall portfolio as much when you have GICs with different terms and interest rates. If rates have risen by the time each GIC matures, you can reinvest the money at a higher rate. Even if rates have dropped, you would have benefited from your initial investment. Finally, a ladder strategy means you can access a portion of your money each year when one of your GICs matures.

Most financial institutions can help you set up a GIC ladder. You can instruct them to reinvest your funds at maturity, so the ladder continues. If you think you’ll need to access some funds after maturity, you’ll need to let them know before the maturity date, so your funds aren’t automatically reinvested.

Student GIC program

Some financial institutions offer a student GIC program aimed at international students looking to participate in the Student Direct Stream (SDS). The SDS is an expedited study permit for students from select countries who are pursuing higher education in Canada.

One of the requirements for SDS is to show proof that the student has a GIC of $10,000 or more. Once the student arrives in Canada, they could open a student bank account and start redeeming their GIC to pay for their living expenses.

Are GICs worth it?

Given that GIC interest rates are typically lower than those available for other investments, many wonder if GICs are worth it. It depends on your goals and situation. GICs can be a good fit for your portfolio in some scenarios, including when:

  • You have a short investment horizon. If you know you’ll need your money in the next five years, investing in GICs is a way to protect your capital while earning some additional interest.
  • You’re looking to balance your portfolio. Because GICs are considered a form of fixed income, they can balance out any riskier equities, like investing in stocks.

GICs may not be the best choice for someone seeking more growth opportunities or someone without an emergency fund.

GIC pros

  • Low risk. Your principal investment is guaranteed.
  • Interest can be guaranteed. With fixed-rate GICs, you’ll know exactly how much interest you’ll earn.
  • Easy to understand. Generally, GICs are simple investment products with defined terms to follow.
  • Your investment is safe. The CDIC, or a credit union regulatory authority, insures GICs.

GIC cons

  • Not very liquid. Even though cashable and redeemable GICs are available, you may have to pay a penalty to access your funds early.
  • Low rate of return. GICs have limited growth potential compared to market-linked products such as mutual funds, stocks or exchange-traded funds (ETFs).
  • May not beat inflation. Although GICs have a guaranteed return, their interest rates may not keep up with inflation. That would result in you losing money over time.
  • Interest earned is fully taxable. If you hold GICs in a non-registered account, any interest earned is fully taxable at your marginal tax rate. This cuts into your overall returns.

GIC alternatives

GICs are just one type of investment product available to Canadians. As you build your portfolio, other types of fixed-income products and some equities are also worth considering.

GICs vs. mutual funds

Mutual funds are often brought up as an alternative to GICs, but it’s not a fair comparison. Mutual funds are a pool of stocks, bonds or other products wrapped into a single investment product handled by a portfolio manager.

While mutual funds can help diversify your portfolio, the returns are not guaranteed. That said, some mutual funds focus on fixed-income investing, which means your money is relatively safe.

GICs vs. bonds

Governments, municipalities and even corporations can offer bonds for purchase. Generally, they pay a fixed level of income until maturity, like a GIC. The main difference is that bond yields can increase and decrease based on market conditions. In addition, you can usually opt in and out of bonds without fear of paying any penalties.

Although bonds are a relatively safe investment, the issuers can have different ratings for stability. Government bonds are typically highly rated and secure, whereas junk or high-yield bonds can be risky since the issuer could default.

GICs vs. high-interest savings accounts

Many digital banks offer high-interest savings accounts (HISAs) with attractive interest rates. These rates are typically much higher than those offered by brick-and-mortar financial institutions. GICs usually offer higher rates, but there’s no locked-in period with a HISA. You can freely move your money in and out without any penalties or fees.

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  • FAQs

    • Are GICs taxable?

      If you buy GICs within a tax-sheltered account such as your RRSP or TFSA, you won’t pay taxes on any interest income you earn. With a TFSA, there are no taxes when you withdraw the funds. However, withdrawals are taxed at your marginal tax rate with an RRSP.

      If you purchase GICs in a non-registered account, any interest you earn would be considered taxable income at your marginal tax rate. Your financial institution issues tax slips during tax season, so you’ll know exactly how much interest income you must report.

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How Do Cashable and Redeemable GICs Work?

GICs are typically offered with a one-year term. Cashable GICs lock in funds for 30-90 days; redeemable GICs have no waiting period.

How to Use a Guaranteed Investment Certificate (GIC)

A Guaranteed Investment Certificate (GIC) is a low-risk, fixed-income investment with guaranteed returns. Interest rates vary by type.