The Best GIC Rates in Canada

A GIC, or Guaranteed Investment Certificate, is a savings product offered by banks and credit unions. They are low-risk and therefore often have lower returns than other types of investments. However, GICs are a safe and secure way to grow your money. Here's a look at the best GIC rates in Canada and why they're a great option for those looking for a safe investment.

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With all the different investment options available, it can be difficult to decide where to put your money. However, one type of investment that is often overlooked is Guaranteed Investment Certificates (GICs). GICs are a low-risk investment option that offer guaranteed returns. In this blog post, we will compare the GIC rates of some of the leading banks in Canada to help you make an informed decision about where to invest your money.

The Best GIC Rates in Canada

The current best GIC rate in Canada is 2.85% for a five-year term. This rate is higher than what is offered by most major banks, which tend to offer rates between 1-2%. Credit unions typically offer the best rates on GICs, but there are some online banks that are also competitive.

Why Choose a GIC?

GICs are a safe and secure way to grow your money. With a GIC, you know exactly how much interest you will earn over the term of the investment, so there are no surprises. GICs are also guaranteed by the Canadian Deposit Insurance Corporation (CDIC) up to $100,000 per account, so you can rest assured your money is safe even if the bank were to fail.

GIC Rates at Major Banks in Canada

The following is a list of some of the major banks in Canada and their current GIC rates:

  • RBC: 0.5% for a 5-year GIC
  • CIBC: 1.45% for a 5-year GIC
  • BMO: 1.6% for a 5-year GIC
  • TD: 1.45% for a 5-year GIC
  • Scotiabank: 1.4% for a 5-year GIC

Here’s a more Comprehensive list of GIC’s in Canada

Tangerine

Tangerine offers a GIC rate of 1.45% for a 5-year term.

EQ Bank

EQ Bank offers a GIC rate of 1.50% for a 5-year term.

Oaken Financial

Oaken Financial offers a GIC rate of 1.55% for a 5-year term.

Alterna Savings

Alterna Savings offers a GIC rate of 1.60% for a 5-year term.

People’s Trust

People’s Trust offers a GIC rate of 1.65% for a 5-year term.

Meridian Credit Union

Meridian Credit Union offers a GIC rate of 1.70% for a 5-year term.

FirstOntario Credit Union

FirstOntario Credit Union offers a GIC rate of 1.75% for a 5-year term.

VantageOne Credit Union

VantageOne Credit Union offers a GIC rate of 1.80% for a 5-year term

Some Facts about GIC’s in Canada

1. GIC rates vary by financial institution and by the type of GIC.
2. The best GIC rates are typically offered by online banks and credit unions.
3. Short-term GICs typically have higher interest rates than long-term GICs.
4. Cashable GICs typically have lower interest rates than non-cashable GICs.
5. Guaranteed Investment Certificates (GICs) are a type of investment that offers guaranteed returns over a set period of time.
6. GICs are a low-risk investment option, which makes them ideal for people who are risk-averse or who are looking to preserve their capital.
7. GICs can be held in Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and non-registered accounts.
8. Interest earned on GICs is typically taxable at the investor’s marginal tax rate.
9. There are several different types of GICs, including fixed rate, variable rate, cashable, and non-cashable GICs.
10. When choosing a GIC, it is important to compare interest rates and terms from different financial institutions to find the best deal

As you can see, the interest rates offered by the different banks vary quite significantly. When choosing a bank to invest with, it is important to compare the interest rates and terms and conditions carefully to make sure you are getting the best deal possible.

Conclusion:
GICs are a great way to invest your money if you are looking for guaranteed returns. However, it is important to do your research and compare interest rates before investing so that you get the best return on your investment.

Vik Palan

Vik Palan

Chief Editor - Ratestead.ca

Ratestead.ca
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