Highest3-YearGIC Ratesmaple leaf
Select GIC Term:
3-Year

3-Year GIC Rates in Canada

WOWA Simply Know Your Options
GIC Type
ProviderRate
WealthONE
WealthONE
4.25%
Saven Financial
Saven Financial
4.20%
Pathwise Credit Union
Pathwise Credit Union
4.20%
Hubert
Hubert
4.15%
Outlook Financial
Outlook Financial
4.10%
MAXA Financial
MAXA Financial
4.10%
ICICI
ICICI
4.00%
Achieva Financial
Achieva Financial
4.00%
MCAN Financial
MCAN Financial
4.00%
Oaken
Oaken
3.95%
Motive Financial
Motive Financial
3.85%
3.80%
Simplii Financial
Simplii Financial
3.74%*
Peoples Bank
Peoples Bank
3.70%
3.60%
Alterna Bank
Alterna Bank
3.60%
Meridian
Meridian
3.60%
Haventree Bank
Haventree Bank
3.56%
Laurentian
Laurentian
3.55%
LBC Digital
LBC Digital
3.55%
First Ontario
FirstOntario Credit Union
3.55%
Equitable
Equitable
3.51%
Manulife
Manulife
3.50%
Bridgewater Bank
Bridgewater Bank
3.43%
National Bank
National Bank
3.35%
Sun Life
Sun Life
3.35%
ATB
ATB Financial
3.35%
3.30%
Canadian Western
Canadian Western Bank
3.25%
Affinity Credit Union
Affinity Credit Union
3.25%
3.15%
3.10%
3.10%
3.10%
motusbank
motusbank
2.85%

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 3-Year GICs?

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

Guaranteed Investment Certificates (GICs), or GICs, are among the most common types of investments available in Canada. The key features of a GIC are:

  • GICs offer a guaranteed return on investments while protecting the initial investment, making them very low-risk investments.
  • The term of the GIC dictates the length of the investment and also determines the interest that will be paid on the investment. For example, with a 3-year GIC, the principal is invested for 3 years, and you will receive interest on your investment each year.
  • Most GICs also allow for the interest to be compounded annually or semi-annually and, in some cases, monthly.

All GICs with a term length longer than 1 year, including 3-year GICs, are categorized as long-term GICs. The interest rate on GICs typically increases with the term length, meaning 5-year GICs usually have a higher interest rate than 3-year GICs. In rare situations, longer-term GIC rates are less than shorter-term GIC rates, such as what we are observing in August 2024. The best 5-year GIC rate available in August 2024 is 4.35%, but the best 3-year GIC rate available is 4.50%. This situation is called an inverted yield curve and generally signifies that interest rates are expected to drop in the future.

3-Year GIC Rates vs Bond Yields

3-Year GIC Rate

4.50%*

as of August 2024

3-Year Bond Rate

3.23%**

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)

Investors often compare government bonds and GICs, as both of them offer guaranteed returns on investments. When you purchase a GIC, you essentially deposit the money with a financial institution for a fixed length of time and earn interest on it. On the other hand, you can lend money to the government or corporations by purchasing their bonds, and you can earn an interest for the same. Comparing the average returns of 1-year GICs and bonds in the longer term, bonds have historically outperformed GICs in terms of annual returns over the last 40 years.

However, there have been short-term scenarios where GICs have outperformed bonds, such as that observed in 2022-2023. During this time, the Bank of Canada significantly raised its policy interest rate, due to which the bond yield experienced a sharp decline. Meanwhile, GIC rates increased in this period and provided higher returns than bonds.

Types of 3-Year GICs

Non-Redeemable, Redeemable and Cashable GICs

GICs can be classified under three categories based on their redemption -

  • Non-Redeemable GICs: These GICs cannot be redeemed or cashed until maturity. This means if you invest in a 3-year non-redeemable GIC for 3 years, your principal investment would be locked away for 3 years, and you won’t be able to access those funds during this time.

  • Redeemable GICs: These types of GICs can be redeemed before maturity at predetermined interest rates that are significantly lower than the initial rate of the GIC. The redemption rate generally depends on when you redeem.

  • Cashable GICs: Cashable GICs can also be redeemed before the maturity date. These GICs generally have a 30-day waiting period, during which a redemption would yield no interest. After the waiting period, the interest rate offered is applied, and you receive interest up to the date of redemption. Cashable GICs typically have a 1-year term, but you can renew the GIC when it matures to continue investing it in for a longer period such as 3 years.

Registered and Non-Registered

GICs can be held in non-registered accounts as well as in a registered account, such as a Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP) and First Home Savings Account (FHSA). Investing in GICs through registered accounts can have potential tax benefits. Therefore, you may consider investing in registered GICs if you have a TFSA contribution room or RRSP contribution room available for the year.

3-Year GIC Insurance

Most 3-year GICs available in Canada are insurable up to a certain limit. The CDIC (Canadian Deposit Insurance Corporation) insurance insures GICs offered by federally regulated providers, such as banks and credit unions, up to a maximum of $100,000 per account. This means that the principal plus interest of up to $100,000 for each account remains protected in case the financial institution fails. On the other hand, provincial regulators insure GICs offered by provincial credit unions, and the limit varies depending on the insurer.

Best 3-Year GICs in Canada

RBC

RBC 3-Year GIC Rates

3-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 October 10 2024

TD

TD 3-Year GIC Rates

3-Year: 3.10%
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 3-Year GIC Rates

3-Year: 3.15%
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 3-Year GIC Rates

3-Year: 3.30%
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 3-Year GIC Rates

3-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 October 10 2024

National Bank

National Bank 3-Year GIC Rates

3-Year: 3.35%
National Bank GIC Terms:
  • Minimum Investment: $500
  • Eligible for: RRSP and TFSA

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