Best Short-Term GIC Rates in Canada for March 2025
Most short-term guaranteed investment certificates, or short-term GICs, provide a secure way to grow your money, usually in less than a year. You generally earn a fixed rate of return on your deposit, which is returned at the end of your term.
Choosing which short-term GIC to put your money into often depends on how much interest you can earn. Below, you’ll find the best rates currently available in Canada for short-term, non-redeemable and fixed-rate GICs.
Why trust NerdWallet
NerdWallet follows strict editorial guidelines to remain objective in our evaluations and ensure accuracy for our readers. Evaluations are based on a proprietary formula that factors in the overall value and benefits of each GIC.
More than 40 financial institutions, including traditional banks, credit unions and online banks are evaluated by our banking specialists.
Over 280 currently available fixed-rate, non-registered and non-redeemable GICs are examined to determine their eligibility for our roundup.
Current highest short-term GIC rates
The best short-term GIC rates overall as of Mar. 12, 2025.
30-day GIC: 2.85% (Peoples Bank of Canada)
60-day GIC: 2.90% (Peoples Bank of Canada)
90-day GIC: 3.05% (EQ Bank and Peoples Bank of Canada)
120-day GIC: 3.90% (Saven Financial)
180-day GIC: 3.50% (Saven Financial)
270-day GIC: 3.30% (Peoples Bank of Canada)
ALSO CONSIDER: The best 1-5 year GIC rates
The best short-term GIC rates in Canada
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BACK TO TOPNerdWallet Canada selects the best guaranteed investment certificates based on several criteria. Factors in our evaluation methodology include 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.
Compare top short-term GIC rates
Financial institutions do not present term lengths the same way, and some banks prefer to use days instead of months to indicate the length of the GIC’s term.
Before buying a GIC, confirm the term deposit’s actual date range so you can accurately calculate the return you can expect to earn on your investment.
Best 30-day and 60-day GIC rates
Top rates currently available for GICs with terms from 30 days (1 month) and 60 days (2 months). The estimated return is based on a $10,000 deposit.
Financial Institution | 1 mo. | est. return | 2 mos. | est. return |
|---|---|---|---|---|
ATB Financial (Alberta only) | 2.00% | $16.44 | 2.00% | $32.88 |
2.25% | $18.49 | 2.50% | $41.10 | |
Bridgewater Bank | Not offered | N/A | 2.70% | $44.38 |
Coast Capital Savings | 2.20% | $18.08 | 2.20% | $36.16 |
Home Trust | 1.00% | $8.22 | 1.00% | $16.44 |
Kindred Credit Union (Ontario only) | 2.00% | $16.44 | 2.25% | $36.99 |
Manulife Bank | 1.80% | $14.79 | 1.80% | $29.59 |
Meridian Credit Union | 1.75% | $14.38 | 2.00% | $32.88 |
Motusbank | 0.95% | $7.81 | 1.00% | $16.44 |
Oaken Financial | 1.00% | $8.22 | 1.00% | $16.44 |
Peoples Bank of Canada | 2.85% | $23.42 | 2.90% | $47.67 |
2.40% | $19.73 | 2.60% | $42.74 | |
2.25% | $18.49 | 2.50% | $41.10 | |
2.25% | $18.49 | 2.50% | $41.10 |
Best 90-day and 120-day GIC rates
Top rates currently available for GICs with terms from 90 days (3 months) and 120 days (4 months). The estimated return is based on a $10,000 deposit.
Financial Institution | 3 mos. | est. return | 4 mos. | est. return |
|---|---|---|---|---|
ATB Financial (Alberta only) | 2.25% | $55.48 | 2.25% | $73.97 |
2.50% | $61.64 | 2.50% | $82.19 | |
Bridgewater Bank | 2.90% | $71.51 | 2.90% | $95.34 |
Coast Capital Savings | 2.50% | $61.64 | 2.50% | $82.19 |
3.05% | $75.21 | Not offered | N/A | |
Home Trust | 1.00% | $24.66 | 1.00% | $32.88 |
Kindred Credit Union (Ontario only) | 2.35% | $57.95 | Not offered | N/A |
Laurentian Bank of Canada | 2.75% | $67.81 | Not offered | N/A |
Manulife Bank | 2.40% | $59.18 | Not offered | N/A |
Meridian Credit Union | 2.25% | $55.48 | Not offered | N/A |
Motusbank | 1.05% | $25.89 | Not offered | N/A |
Oaken Financial | 1.00% | $24.66 | 1.00% | $32.88 |
Peoples Bank of Canada | 3.00% | $73.97 | 3.05% | $100.27 |
2.65% | $65.34 | Not offered | N/A | |
Saven Financial | Not offered | N/A | 3.90% | $128.22 |
2.55% | $62.88 | 2.55% | $83.84 | |
3.00% | $73.97 | Not offered | N/A | |
2.50% | $61.64 | 2.50% | $82.19 |
Best 180-day and 270-day GIC rates
Financial Institution | 6 mos. | est. return | 9 mos. | est. return |
|---|---|---|---|---|
ATB Financial (Alberta only) | 2.50% | $123.29 | 2.50% | $184.93 |
2.65% | $130.68 | 2.65% | $196.03 | |
Bridgewater Bank | 2.90% | $143.01 | 2.95% | $218.22 |
Canadian Imperial Bank of Commerce (CIBC) Bonus Rate GIC | 2.60% | $128.22 | 2.75% | $203.42 |
Coast Capital Savings | 2.80% | $138.08 | 2.80% | $207.12 |
3.15% | $155.34 | 3.10% | $229.32 | |
Home Trust | 2.25% | $110.96 | 2.70% | $199.73 |
Island Savings (British Columbia only) | 3.14% | $154.85 | 3.17% | $234.49 |
Kindred Credit Union (Ontario only) | 2.40% | $118.36 | 3.15% | $233.01 |
Laurentian Bank of Canada | 2.80% | $135.62 | 2.90% | $207.12 |
Manulife Bank | 2.40% | $118.36 | 2.40% | $177.53 |
Meridian Credit Union | 2.50% | $123.29 | 2.50% | $184.93 |
Motusbank | 1.05% | $51.78 | 1.05% | $77.67 |
1.50% | $73.97 | 1.85% | $136.85 | |
Oaken Financial | 2.25% | $110.96 | 2.70% | $199.73 |
Peoples Bank of Canada | 3.20% | $157.81 | 3.30% | $244.11 |
2.65% | $130.68 | 2.65% | $196.03 | |
Saven Financial | 3.50% | $172.60 | Not offered | N/A |
2.60% | $128.22 | 2.70% | $199.73 | |
3.15% | $155.34 | 3.25% | $240.41 | |
2.40% | $118.36 | 2.35% | $173.84 | |
Valley First (British Columbia only) | 3.14% | $155.46 | 3.17% | $231.41 |
Things to know before buying a short-term GIC
What is a short-term GIC?
A short-term GIC is a type of GIC that pays a set amount of interest over a period that’s less than a year. Common term lengths for this investment product include 30-, 60-, 90- and 180-days.
Your principal deposit is guaranteed with a short-term GIC, so you’ll never come away with less than you originally invested. But, because the terms are short, you’ll earn limited interest. Some 90-day GICs, for example, pay less than 1% interest.
How do interest rates work on short-term GICs?
Financial institutions usually advertise fixed-rate GICs with annual interest rates, which means you can find out exactly how much interest you’d earn on your investment over the course of a year.
However, since you’ll hold a short-term GIC for less than one year, you won’t earn that total annual rate of interest. Instead, you’ll only earn interest at that annual rate of return during the GIC’s term, and that return on your principal investment will be less than you may expect.
How to calculate GIC return
While long-term GICs earn compounding interest — interest on your principal investment plus any interest you’ve already earned — short-term GICs do not. Instead, you’ll only earn interest on your principal investment, so you’ll need to use simple interest to calculate the rate of return.
To determine how much interest you’ll earn on your principal, follow this formula:
Simple interest earned = Principal investment x Interest rate x Time (in years).
This is quite easy with a one-year GIC.
For example, let’s say you put $1,000 into a one-year GIC paying 5% interest.
Simple interest earned = $1,000 principal investment x 5% interest x 1-year term
Simple interest earned = $1000 x .05 X 1
Simple interest earned = $50
In this scenario, your GIC would earn $50 in interest at maturity.
However, this calculation gets more complicated for GICs held for less than a year. To calculate the rate of return here, you’ll need to convert the number of days in your term to a number measured in years before using the same simple interest formula.
For example, let’s say you put $1,000 into a 182-day GIC paying 5% interest.
Simple interest earned = $1,000 principal investment x 5% interest x (182 days in the term / 365 days in a year).
Simple interest earned = $1,000 x 0.05 x 0.499.
Simple interest earned = $24.95.
In this scenario, your short-term GIC would earn you $24.95 in interest at maturity.
Are GICs good for a short-term investment?
Depending on the interest rate offered, a GIC can be a smart alternative to some basic and high-interest savings accounts. They’re secure, the returns are guaranteed and they don’t require much maintenance. If that’s important to you, a GIC investment is likely worth your money.
If you have an amount of cash that you don’t plan on touching for several months, a short-term GIC can help you earn a few extra dollars. It’s a great way to start investing.
You can even earn tax-advantaged interest by purchasing a GIC within your TFSA or by using funds in your RRSP to buy GICs.
To get maximum value from a GIC, you need to keep your money parked for the full term. And if you’re not comfortable committing to that, make sure you get a cashable or redeemable GIC that allows you to withdraw your money early without penalty.
And if you’re comfortable investing your money for a little longer, you can always consider purchasing longer-term GICs, which are sold in yearly increments. Based on the interest rate trend, you may be able to access higher interest rates and the ability to grow your return through a GIC ladder.
Alternatives to fixed-rate GICs
Suppose fixed-rate, non-redeemable short-term GICs aren’t the right fit for you. You still have plenty of other alternatives, including market-linked, registered, variable-rate and US-dollar GICs. Make sure you compare interest rates for the various term deposits offered by both, traditional and online banks.
Frequently asked questions
What is the highest paying short-term GIC rate in Canada?
What is the highest paying short-term GIC rate in Canada?
The best short-term GIC rates overall as of Mar. 12, 2025.
120-day GIC: 3.90% (Saven Financial)
180-day GIC: 3.50% (Saven Financial)
270-day GIC: 3.30% (Peoples Bank of Canada)
Are short-term GICs worth it?
Are short-term GICs worth it?
Short-term GICs may be worth investing in if:
You’re risk-averse or new to investing and want to secure your principal while earning guaranteed returns.
You can’t find time to manage your investment based on market changes.
You have money that you don’t plan on using for several months.
Other factors that make short-term GIC a smart choice include the interest rate, interest payment option, and the type of GIC you choose.
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