Highest1-YearGIC Ratesmaple leaf
Select GIC Term:
1-Year

Best 1-Year GIC Rates in Canada

WOWA Simply Know Your Options
GIC Type
ProviderRate
Pathwise Credit Union
Pathwise Credit Union
4.75%
WealthONE
WealthONE
4.60%
ICICI
ICICI
4.50%
Saven Financial
Saven Financial
4.45%
Achieva Financial
Achieva Financial
4.40%
Outlook Financial
Outlook Financial
4.40%
MAXA Financial
MAXA Financial
4.40%
MCAN Financial
MCAN Financial
4.35%
Oaken
Oaken
4.30%
Hubert
Hubert
4.25%
4.20%
Motive Financial
Motive Financial
4.20%
Peoples Bank
Peoples Bank
4.10%
Simplii Financial
Simplii Financial
4.03%*
4.00%
Laurentian
Laurentian
4.00%
LBC Digital
LBC Digital
4.00%
Equitable
Equitable
3.86%
Haventree Bank
Haventree Bank
3.86%
Meridian
Meridian
3.85%
3.75%
3.75%
Sun Life
Sun Life
3.75%
National Bank
National Bank
3.70%
Bridgewater Bank
Bridgewater Bank
3.70%
ATB
ATB Financial
3.70%
Affinity Credit Union
Affinity Credit Union
3.70%
Alterna Bank
Alterna Bank
3.70%
First Ontario
FirstOntario Credit Union
3.65%
Canadian Western
Canadian Western Bank
3.55%
motusbank
motusbank
3.50%
Manulife
Manulife
3.45%
3.40%
3.40%
3.40%

Note: GIC rates shown are for non-redeemable GICs with annual compounding.

*Compounded monthly

1-Year GIC Rates vs Bond Yields

1-Year GIC Rate

5.25%*

as of August 2024

1-Year Bond Rate

3.76%**

as of August 2024

*Highest rate offered by providers listed on WOWA.ca

**From ca.investing.com (End of the day on August 19, 2024)

What Are 1-Year GICs?

The content below, excluding GIC rates, was last updated on: September 12th, 2024

gic-rates-img-1

A guaranteed investment certificate (GIC) offers a guaranteed rate of return over a certain time period. 1-year GICs are one of the most common term lengths for GICs. With a 1-year GIC, you’ll be investing your money for one year, after which you’ll receive your initial principal back, along with accrued interest that you have earned.

The most popular kind of 1 year GIC is a non-redeemable GIC, which typically has a fixed GIC interest rate, and their returns can be predetermined. However, some types of GICs may offer a variable rate of interest, such as prime-linked GICs and Market-Linked GICs. You can even purchase foreign currency 1-year GICs, such as USD GICs.

With a GIC, your initial investment is protected, and it’s also eligible for CDIC insurance if you purchase a 1-year GIC from a participating CDIC member, which includes Canada’s major banks. 1-year GICs from credit unions may be eligible for deposit insurance by your provincial regulator. The maximum amount insured by CDIC for 1-year GICs is $100,000 per account, including the principal and the interest. Be sure to check the limits for provincially offered equivalent insurance if you’re looking to purchase a 1-year GIC from a credit union instead.

Redeemable, Cashable and Non-redeemable GICs 1-Year GICs

The most common 1-year GICs are usually non-redeemable, which means they can only be redeemed at the end of one year. However, some types of GICs, such as cashable or redeemable GICs, may allow you to redeem the GIC before it matures. Redeemable GICs usually have predetermined early redemption rates that apply if you choose to withdraw the 1-year GIC early. Most cashable GICs can be redeemed at any time after an initial waiting period of 30 days with the interest accrued up to the date of redemption. Redeeming a cashable GIC within the waiting period doesn’t earn you any interest.

Non-redeemable GICs can have terms ranging from as little as 30 days to 10 years. On the other hand, cashable GICs are often available for a one-year term and can be renewed annually. Redeemable GICs can have terms ranging from a few days to a few years, but the offerings greatly vary depending on the provider.

Registered and Non-Registered 1-Year GICs

1-year GICs are usually offered for both non-registered and registered accounts. This means that you can purchase 1-year GICs for your Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP), or other registered account as an alternative to buying stocks or keeping your money in a savings account. 1-year GIC rates are often higher than most high-interest savings account rates as well.

Cashable vs. Non-Redeemable 1-Year GICs?

When it comes to choosing a GIC, one of the key decisions is whether you want a cashable or non-redeemable GIC. A cashable GIC can be redeemed at any time, while a non-redeemable GIC has a set term and cannot be cashed in early. The main advantage of a cashable GIC is that you have access to your money if you need it. The downside is that you usually get a lower interest rate than with a non-redeemable GIC.

When it comes to a 1-year term, it depends on your personal circumstances as to whether a cashable or non-redeemable 1-year GIC is better. If you're reasonably sure you won't need the money during the year, then a non-redeemable GIC will give you a higher interest rate. However, if there's a possibility you may need the money, then a cashable GIC may be a better choice.

Highest1-YearGIC Ratesmaple leaf
Select GIC Term:
1-Year

Best 1-Year GICs in Canada

RBC

RBC 1-Year GIC Rates

1-Year: 3.40%
RBC GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RESP, RRIF, LIF, and RDSP (min. $500)

Current RBC Non-Redeemable GIC Rates as of October 10 2024

TD

TD 1-Year GIC Rates

1-Year: 3.75%
TD GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RESP, and RRIF

Current TD Non-Redeemable GIC Rates as of October 10 2024

Scotiabank

Scotiabank 1-Year GIC Rates

1-Year: 3.40%
Scotiabank GIC Terms:
  • Minimum Investment: $500
  • Eligible for: RRSP, RESP, TFSA, RDSP, RIF, LIF, LRIF, and RLIF

Current Scotiabank Non-Redeemable GIC Rates as of October 10 2024

BMO

BMO 1-Year GIC Rates

1-Year: 3.75%
BMO GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RESP, RIF, and RDSP

Current BMO Non-Redeemable GIC Rates as of October 10 2024

CIBC

CIBC 1-Year GIC Rates

1-Year: 3.40%
CIBC GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RRIF, and LIF

Current CIBC Non-Redeemable GIC Rates as of October 10 2024

National Bank

National Bank 1-Year GIC Rates

1-Year: 3.70%
National Bank GIC Terms:
  • Minimum Investment: $500
  • Eligible for: RRSP and TFSA

Current National Bank Non-Redeemable GIC Rates as of October 10 2024

Cashable vs. Non-Redeemable 1-Year GIC Rates

The difference between cashable and non-redeemable 1-year GIC rates can be significant. For example, a 1-year cashable GIC from RBC has an interest rate of 2.25% as of August 2024, while a 1-year non-redeemable GIC from RBC has an interest rate of 4%. Going with a non-redeemable GIC might mean your interest earnings would be almost double that of a cashable GIC!

Similarly, non - redeemable GICs usually also have a rate higher than redeemable GICs. For example, RBC’s redeemable 1-year GIC had an interest rate of 3.45%, vs. the non-redeemable rate of 4% in August 2024.

The table below compares the best non-registered 1-year cashable, redeemable and non-redeemable GICs in Canada as of August 2024.

Comparing 1-Year Cashable vs. Non-Redeemable GIC Rates

Bank1-Year Cashable1-Year Redeemable1-Year Non-Redeemable
RBC2.25%3.45%4.00%
TD3.00%-4.15%
Scotiabank3.00%-4.00%
BMO3.00%2.70%4.00%
CIBC3.00%0.20%*3.80%
National Bank0.90%0.75%4.00%

Note: Rates are as of August 21, 2024, for non-registered accounts.

*Posted rate

Disclaimer:

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  • Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.