The best GICs in Canada 2024

Guaranteed Investment Certificates (GICs) have been a hot topic for the last two years because of their unusually high interest rate.

In the previous newsletters, I explained why the GIC rates are high and what to look for when choosing a GIC.

In today’s newsletter, we will go through the GICs offered by some of the major financial institutions and rank them based on their interest rate, redeemability, and terms. At the end, we will see which ones make it to the overall best list.

Please note that with the Bank of Canada cutting their overnight interest rates, these GIC rates could change any day and may no longer be applicable. Ensure you are verifying the real-time rates on each bank’s website.

THE STACK

Highest 3-month GIC rates in Canada

1. EQ Bank - 3.75%
2. Tangerine - 3.50%
3. CIBC - 3.50%
4. RBC - 3.30%
5. BMO - 2.75%

Highest 6-month GIC rates in Canada

1. Peoples’s Bank - 5.00%
2. ICICI and Tangerine - 4.75%
3. Bridgewater Bank - 4.52%
4. EQ Bank - 4.45%
5. Equitable - 4.35%

Highest 9-month GIC rates in Canada

1. ICICI and Tangerine - 5.00%
2. People’s Bank - 4.85%
3. Bridgewater Bank - 4.76%
4. EQ Bank - 4.65%
5. Equitable - 4.50%

Highest 1-year GIC rates in Canada

1. ICICI and Oaken - 5.35%
2. People’s Bank - 5.10%
3. EQ Bank - 5.05%
4. WealthONE and Outlook Financial - 5.00%
5. Equitable - 4.91%

Highest 2-year GIC rates in Canada

1. Oaken - 5.20%
2. ICICI - 5.00%
3. WealthONE and Hubert - 4.85%
4. Outlook Financial - 4.80%
5. EQ Bank and People’s Bank - 4.75%

Highest 3-year GIC rates in Canada

1. Oaken - 4.80%
2. ICICI - 5.00%
3. People’s Bank - 4.65%
4. WealthONE and Hubert - 4.60%
5. EQ Bank - 4.55%

Highest 4-year GIC rates in Canada

1. ICICI - 4.75%
2. Oaken - 4.60%
3. People’s Bank and WealthONE - 4.55%
4. Hubert - 4.60%
5. Outlook Financial - 4.5%

Highest 5-year GIC rates in Canada

1. ICICI - 4.75%
2. Oaken and WealthONE - 4.50%
3. People’s Bank - 4.45%
4. Hubert - 4.40%
5. EQ Bank - 4.35%

Please note that all the GICs listed above are non-redeemable GICs

The bank with the best GIC rates in Canada for 2024

Drumroll, please……

EQ Bank is the winner because not only do they stay in the top 5 list for almost all the terms, they also provide GICs with shorter terms of 3 months that most financial institutions do not have available.

Banks with redeemable GICs

Here is a list of some banks that offer redeemable GICs in Canada.

RBC - from 3 months to 5-years ranging from 3.05% to 3.45%

BMO - from 3 months to 5-years ranging from 2.25% to 3.40%

CIBC - from 3 months to 5-years ranging from 0.05% to 0.70%

THE TOOL

Compare GIC rates

Before purchasing a GIC, it's important to shop around and compare rates. This GIC comparison tool makes it easy to compare all the rates offered by Canadian Financial Institutions, and they update their website regularly with the latest rates.

THE ACCOUNTABILITY

It's time to shop around and lock in your GIC rates. With the Bank of Canada rate cut, these GIC rates could reduce at any moment. If you have any short-term goals that you’re currently saving for, it's best to purchase a GIC so you can earn some interest.

THE COURAGE

THE KNOWLEDGE

Redeemable GICs

A redeemable GIC is a type of GIC that allows the investor to withdraw the funds before the maturity date, typically with some penalties or restrictions.

Non-redeemable GICs

A non-redeemable GIC is a type of GIC in which the money is locked in for a specific period of time, typically ranging from 3 months to 5 years. It cannot be withdrawn before the maturity date without incurring a penalty.

Non-redeemable GICs often offer higher interest rates compared to redeemable GICs because of the commitment to keep the funds invested for the entire term.

Maturity Date

The maturity date of a GIC is the date on which the principal amount invested is returned to the investor, along with any accrued interest. It signifies the end of the GIC term, at which point the investor can choose to reinvest the funds or withdraw them.

GICs can have varying maturity periods, such as 3 months, 1 year, 3 years, or 5 years, depending on the terms of the investment.

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