Highest2-YearGIC Ratesmaple leaf
Select GIC Term:
2-Year

Best 2-Year GIC Rates in Canada

WOWA Simply Know Your Options
GIC Type
ProviderRate
WealthONE
WealthONE
4.05%
Pathwise Credit Union
Pathwise Credit Union
4.00%
Saven Financial
Saven Financial
4.00%
Oaken
Oaken
4.00%
Outlook Financial
Outlook Financial
4.00%
MAXA Financial
MAXA Financial
4.00%
MCAN Financial
MCAN Financial
4.00%
3.95%
Hubert
Hubert
3.95%
Bridgewater Bank
Bridgewater Bank
3.94%
Haventree Bank
Haventree Bank
3.92%
Equitable
Equitable
3.91%
3.90%
Achieva Financial
Achieva Financial
3.90%
Peoples Bank
Peoples Bank
3.85%
ICICI
ICICI
3.80%
Laurentian
Laurentian
3.75%
LBC Digital
LBC Digital
3.75%
Motive Financial
Motive Financial
3.75%
Manulife
Manulife
3.75%
Meridian
Meridian
3.60%
Simplii Financial
Simplii Financial
3.59%*
3.50%
First Ontario
FirstOntario Credit Union
3.50%
National Bank
National Bank
3.45%
Alterna Bank
Alterna Bank
3.40%
Sun Life
Sun Life
3.35%
3.25%
3.25%
ATB
ATB Financial
3.25%
Affinity Credit Union
Affinity Credit Union
3.20%
Canadian Western
Canadian Western Bank
3.15%
3.10%
3.10%
motusbank
motusbank
3.00%

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

*Compounded monthly

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

What Are 2-Year GICs?

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

Guaranteed Investment Certificates (GICs) are one of the most popular forms of investment in Canada, especially for risk-averse investors. As their name suggests, GICs offer guaranteed returns on investments. When you invest in a GIC, your investment is locked for the length of the term you have selected, and you earn interest on it for that duration. When you invest in a 2-year GIC, your investment is locked for 2 years.

2-year GICs and all GICs with a term length longer than 1 year fall under the category of long-term GICs. Usually, the interest rates increase with the term, meaning a 5-year GIC will often offer a higher interest rate than a 2-year GIC. However, sometimes, the shorter-term rates are higher than the longer-term rates, and this situation is called an inverted yield curve. An inverted yield curve signals that the rates will fall in the future and often also hints at an economic slowdown.

2-Year GIC Rates vs Bond Yields

2-Year GIC Rate

4.80%*

as of August 2024

2-Year Bond Rate

3.33%**

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)

Both GICs and bonds offer guaranteed returns on investments. Bonds have consistently outperformed GICs in the long term, with a much better average annual return over the last 40 years. However, GICs can outperform bonds in some short-term scenarios, such as when interest rates suddenly increase. A recent example is 2022 - 2023, when the Bank of Canada hiked its policy rates significantly, causing the bond prices to drop sharply. During this time, GIC rates increased and provided higher returns than bonds.

Types of 2-Year GICs

Registered and Non-Registered

2-year GICs in Canada can be held in non-registered accounts as well as registered accounts, such as Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), Registered Education Savings Plans (RESP) and more. Investing in GICs through registered accounts can have potential tax benefits. Therefore, if you have a TFSA contribution room or RRSP contribution room available, you may consider investing in 2-year GIC options through these accounts. If you are saving up for the purchase of your first home, you may also consider investing in GICs through a First Home Savings Account (FHSA) to grow your savings tax-free.

Redeemable, Non-Redeemable and Cashable GICs

Another basis for the classification of 2-year GICs is their redemption. 2-year Non-redeemable GICs cannot be redeemed for two years. Redeemable GICs can be redeemed early at a predetermined early redemption rate, which is much lower than the original GIC rate. Cashable GICs also have a lower rate than non-redeemable GICs. They can be cashed at that rate anytime after the initial waiting period, which is usually 30 days. Cashing the GICs during the waiting period yields zero interest. Most cashable GICs have a 1-year term, but you can renew the GIC at the end of the first year to invest in it for 2 years.

2-Year GIC Insurance

Most GIC investments are eligible for either CDIC (Canadian Deposit Insurance Corporation) insurance or insurance from provincial regulators. This means that the investments within the insurer's prescribed limits will remain safe even if the financial institution you have invested with fails for some reason.

Best 2-Year GICs in Canada

RBC

RBC 2-Year GIC Rates

2-Year: 3.10%
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 December 06 2024

TD

TD 2-Year GIC Rates

2-Year: 3.50%
TD GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RESP, and RRIF

Current TD Non-Redeemable GIC Rates as of December 06 2024

Scotiabank

Scotiabank 2-Year GIC Rates

2-Year: 3.25%
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 December 06 2024

BMO

BMO 2-Year GIC Rates

2-Year: 3.25%
BMO GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RESP, RIF, and RDSP

Current BMO Non-Redeemable GIC Rates as of December 06 2024

CIBC

CIBC 2-Year GIC Rates

2-Year: 3.10%
CIBC GIC Terms:
  • Minimum Investment: $1,000
  • Eligible for: RRSP, TFSA, RRIF, and LIF

Current CIBC Non-Redeemable GIC Rates as of December 06 2024

National Bank

National Bank 2-Year GIC Rates

2-Year: 3.45%
National Bank GIC Terms:
  • Minimum Investment: $500
  • Eligible for: RRSP and TFSA

Current National Bank Non-Redeemable GIC Rates as of December 06 2024

Disclaimer:

  • Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
  • The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
  • Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
  • 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.