Lock in guaranteed returns with the best GICs in Canada. Compare current rates, terms, and providers to find the right fit for your savings goals.
Ratesopedia’s Take: GIC rates have stabilized below 4% as the Bank of Canada holds steady at 2.25%. The top 5-year rates currently sit at 3.85%, offering predictable returns without market risk. If you’re comparing savings options, GICs make sense when you won’t need access to your money for a set period.
Top GIC Rates in Canada
GIC rates across Canada range from 2.25% to 3.85% depending on the term and provider. Online financial institutions typically offer higher rates than traditional banks.
| Provider | 1-Year | 3-Year | 5-Year | Minimum |
|---|---|---|---|---|
| Achieva Financial | 3.60% | 3.70% | 3.85% | $1,000 |
| EQ Bank | 3.20% | 3.65% | 3.85% | $100 |
| Hubert Financial | 3.45% | 3.65% | 3.80% | $1,000 |
| MCAN Wealth | 3.40% | 3.60% | 3.80% | $100 |
| Oaken Financial | 3.00% | 3.60% | 3.80% | $1,000 |
| BMO | 2.25% | 2.55% | 3.00% | $1,000 |
| RBC | 2.45% | 2.55% | 2.75% | $1,000 |
| TD | 2.60% | 2.75% | 3.00% | $1,000 |
Rates and terms may vary by financial institution. These figures reflect non-redeemable, non-registered GICs as of March 2026.
Types of GICs Available
Canadian financial institutions offer several GIC structures. Each type balances flexibility, rate, and access differently.
Non-Redeemable GICs
These lock in your funds for the full term and typically offer the highest rates. You cannot withdraw early without penalty.
- Higher returns: Rates are typically 0.5-1.0% higher than cashable options
- Predictable growth: You know exactly what you’ll earn at maturity
- Terms from 30 days to 10 years: Choose the period that matches your goal
- Available in registered accounts: Hold them in TFSAs, RRSPs, or RRIFs
Cashable GICs
These allow early withdrawal after a waiting period, usually 30 to 90 days. The trade-off is a lower interest rate.
- Typical waiting period: 30-90 days before you can access funds
- Rate penalty: Expect 0.5-1.5% lower than non-redeemable GICs
- Common terms: Usually limited to 1-year options
- Best for: Emergency funds or money you might need on short notice
Market-Linked GICs
Your return is tied to stock market performance, but your principal is protected. These offer upside potential with downside protection.
- Principal guarantee: You never lose your initial investment
- Variable returns: Your interest depends on index performance
- Minimum guarantee: Some offer a floor rate even if markets decline
- Participation rate: You typically earn a percentage of market gains, not 100%
Registered vs Non-Registered
GICs can be held inside tax-advantaged accounts or in regular accounts. The choice affects how you’re taxed.
| Account Type | Tax Treatment | Best For |
|---|---|---|
| TFSA | Tax-free growth and withdrawals | Short to medium-term goals |
| RRSP | Tax-deferred until withdrawal | Retirement savings |
| FHSA | Tax-free for first home purchase | Home buyers |
| Non-registered | Interest taxed annually | When registered room is full |
What Affects GIC Rates
Several factors determine the rates financial institutions offer. Understanding these helps you time your purchase.
Bank of Canada Policy Rate
The central bank’s overnight rate influences what banks pay for deposits. When this rate rises, GIC rates typically follow. As of March 2026, the rate sits at 2.25%.
Bond Market Yields
GIC rates track government bond yields more closely than the overnight rate. When bond yields climb, GICs become more attractive to offer.
Term Length
Longer terms usually earn higher rates because you’re committing your money for more time. The difference between 1-year and 5-year rates currently ranges from 0.25% to 0.65%.
Institution Type
Online banks and credit unions often pay 0.5-1.5% more than major banks. They have lower overhead costs and compete for deposits.
How to Choose a GIC
Matching the right GIC to your situation involves weighing several trade-offs. Consider these factors before committing.
When You’ll Need the Money
If you might need access within a year, a cashable GIC or high-interest savings account makes more sense. For longer timelines, non-redeemable GICs pay better.
- 0-6 months: Consider high-interest savings instead of GICs
- 6-12 months: Short-term non-redeemable or cashable GICs work well
- 1-3 years: Mid-term GICs balance rate and flexibility
- 3-5 years: Long-term GICs offer the highest guaranteed returns
Rate vs Flexibility
Every GIC forces a choice between earning more and maintaining access. Calculate what that flexibility costs you in dollar terms.
For example, on a $10,000 investment over one year, the difference between a 3.60% non-redeemable GIC and a 2.25% cashable GIC equals $135 in interest.
Minimum Investment Amount
Most GICs require $500 to $1,000 to start. Some institutions like EQ Bank and MCAN Wealth accept as little as $100.
Laddering Strategy
Instead of putting all your money in one GIC, split it across different maturity dates. This gives you regular access while capturing higher long-term rates.
A simple ladder might divide $20,000 into four $5,000 GICs maturing in one, two, three, and four years. Each year, reinvest the maturing GIC for another four-year term.
Best GIC Providers
Different institutions serve different needs. Here’s where to find competitive rates across provider types.
Online Banks
- EQ Bank: Low minimums ($100) and competitive rates across all terms
- Tangerine: Regular promotions on select terms with $500 minimum
- Simplii Financial: Backed by CIBC with straightforward rate structure
Credit Unions
- Achieva Financial: Consistently top rates with Manitoba unlimited deposit guarantee
- Hubert Financial: Strong 5-year rates with Manitoba coverage
- Meridian Credit Union: Ontario-based with FSRA coverage up to $250,000
Traditional Banks
The Big Six banks offer GICs with full branch access but typically pay lower rates. They can be worth considering if you value in-person service.
- BMO, CIBC, RBC, Scotiabank, TD: Rates 0.5-1.5% below online competitors
- Special offers: Watch for promotional rates on specific terms
- Relationship pricing: Some offer better rates with larger account balances
Specialty Lenders
- Oaken Financial: Home Trust subsidiary with competitive 3-5 year rates
- MCAN Wealth: $100 minimum with CDIC coverage
- ICICI Bank Canada: CAD and USD GICs available
GICs vs Other Savings Options
Before locking into a GIC, compare what else is available. Each option has distinct advantages.
| Product | Rate Range | Liquidity | Risk |
|---|---|---|---|
| Non-redeemable GIC | 2.25-3.85% | Locked until maturity | None (CDIC insured) |
| Cashable GIC | 1.25-2.75% | After 30-90 days | None (CDIC insured) |
| High-interest savings | 1.50-4.75% | Instant access | None (CDIC insured) |
| Money market fund | 2.00-3.50% | 2-3 business days | Low (not guaranteed) |
High-interest savings accounts currently offer some promotional rates above GICs, but these are temporary. Compare current offers at best savings accounts before deciding.
Who Should Consider GICs
- Conservative savers: You want guaranteed returns without market risk
- Short-term goal planning: You’re saving for a specific purchase within 1-5 years
- Retirees seeking income: Predictable interest helps with budgeting
- Portfolio diversification: GICs balance riskier investments
- TFSA or RRSP holders: Tax-sheltered growth makes sense for guaranteed products
When to Consider Alternatives
- You might need the money: Penalties for early withdrawal make GICs costly if plans change
- Inflation concerns: Current rates barely exceed inflation, reducing real returns
- Long investment timeline: Equity investments historically outperform GICs over 10+ years
- You can tolerate some risk: Bond funds or balanced portfolios may offer better returns
Bottom Line
GICs remain a solid choice for Canadians who prioritize safety and predictability. Current rates between 3.20% and 3.85% provide modest guaranteed growth, though they’ve declined from the 5% levels seen in early 2024.
The best approach depends on your timeline and need for access. Non-redeemable GICs from online banks and credit unions offer the highest returns. Consider laddering across multiple terms to balance rate and liquidity.
Before committing, compare GIC rates against promotional savings account offers and ensure you won’t need the funds before maturity. For more ways to optimize your savings, subscribe to our newsletter for weekly updates on the best rates across Canada.
