Best 1-Year GIC Rates in Canada
| Provider | Rate |
|---|---|
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
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.
Best 1-Year GICs in Canada
RBC 1-Year GIC Rates
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RESP, RRIF, LIF, and RDSP (min. $500)
Current RBC Non-Redeemable GIC Rates as of May 16 2025
TD 1-Year GIC Rates
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RESP, and RRIF
Current TD Non-Redeemable GIC Rates as of May 16 2025
Scotiabank 1-Year GIC Rates
- Minimum Investment: $500
- Eligible for: RRSP, RESP, TFSA, RDSP, RIF, LIF, LRIF, and RLIF
Current Scotiabank Non-Redeemable GIC Rates as of May 16 2025
BMO 1-Year GIC Rates
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RESP, RIF, and RDSP
Current BMO Non-Redeemable GIC Rates as of May 15 2025
CIBC 1-Year GIC Rates
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RRIF, and LIF
Current CIBC Non-Redeemable GIC Rates as of May 15 2025
National Bank 1-Year GIC Rates
- Minimum Investment: $500
- Eligible for: RRSP and TFSA
Current National Bank Non-Redeemable GIC Rates as of May 17 2025
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
| Bank | 1-Year Cashable | 1-Year Redeemable | 1-Year Non-Redeemable |
|---|---|---|---|
| RBC | 2.25% | 3.45% | 4.00% |
| TD | 3.00% | - | 4.15% |
| Scotiabank | 3.00% | - | 4.00% |
| BMO | 3.00% | 2.70% | 4.00% |
| CIBC | 3.00% | 0.20%* | 3.80% |
| National Bank | 0.90% | 0.75% | 4.00% |
Note: Rates are as of August 21, 2024, for non-registered accounts.
*Posted rate
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