6-Month GIC Rates in Canada
| Provider | Non-Redeemable | Redeemable |
|---|---|---|
Peoples Bank | 5.00% Non-Redeemable | - Redeemable |
4.75% Non-Redeemable | - Redeemable | |
Equitable | 4.55% Non-Redeemable | - Redeemable |
4.50% Non-Redeemable | - Redeemable | |
Bridgewater Bank | 4.32% Non-Redeemable | - Redeemable |
Canadian Western Bank | 4.00% Non-Redeemable | - Redeemable |
Manulife | 3.70% Non-Redeemable | - Redeemable |
3.55% Non-Redeemable | 3.30% Redeemable | |
3.55% Non-Redeemable | 0.05% Redeemable | |
Laurentian | 3.50% Non-Redeemable | - Redeemable |
Sun Life | 3.35% Non-Redeemable | - Redeemable |
3.25% Non-Redeemable | 2.50% Redeemable | |
3.25% Non-Redeemable | - Redeemable | |
3.25% Non-Redeemable | - Redeemable | |
Meridian | 3.25% Non-Redeemable | - Redeemable |
FirstOntario Credit Union | 3.15% Non-Redeemable | - Redeemable |
ATB Financial | 2.50% Non-Redeemable | - Redeemable |
Oaken | 2.25% Non-Redeemable | - Redeemable |
Haventree Bank | 2.01% Non-Redeemable | - Redeemable |
National Bank | 1.50% Non-Redeemable | - Redeemable |
motusbank | 1.05% Non-Redeemable | - Redeemable |
What are 6-Month GICs?
One of the most secure investment options available in Canada is Guaranteed Income Certificates (GICs). GICs guarantee a certain rate of return on your investment over a fixed time period or the term of the GIC. This means if you invest in a 6-month GIC or a 180 day GIC, you will invest your money for a period of 6 months, after which you will get your investment back along with the interest accrued on it. 6-month GICs fall under the category of short-term GICs, which also includes all GICs with a term shorter than 1 year. 6 month GIC rates are usually fixed rates, which means you can calculate the returns of the GICs before investing in them. Some GICs have a variable interest rate that is linked to the market, known as market-linked GICs; however, they usually have terms starting from 2 years.
GIC investments are usually insurable by CDIC (Canadian Deposit Insurance Corporation) insurance or provincial regulators. This implies that your investment (up to a limit) will be protected if the financial institution fails. While CDIC covers GIC investments in major banks and all CDIC members, provincial regulators typically insure the GIC investments in credit unions in the provinces regulated by them. It is also noteworthy that insurance coverage usually has some limits. CDIC has a maximum coverage limit of $100,000, including principal and interest. Other provincial regulators have different limits for coverage.
Redeemable and Non-Redeemable 6-Month GICs
6-month GICs can be both redeemable and non-redeemable. While non-redeemable GICs are widely available, redeemable GICs are offered by fewer institutions. With a 6-month non-redeemable GIC, your investment will be locked for six months, and you won’t have access to the money before maturity. On the other hand, redeemable GICs allow you to withdraw all or some of the investment before maturity, often at a lower interest rate than the original GIC rate.
You will also find that the 6 month GIC rates for non-redeemable GICs are typically higher than the redeemable GICs. For example, as of August 2023, BMO’s 6-month GIC redeemable GIC has an interest rate of 2.50%, while the 6-month non-redeemable GIC has an interest rate of 3.50%. This means that you will earn more interest on your investment when you opt for a non-redeemable GIC. Therefore, if you are sure you won’t need the money for the term of the GIC, it may be preferable to opt for the non-redeemable option. There are usually predetermined early redemption rates for redeemable GICs, which apply when you redeem the GIC before maturity. These rates are usually much lower than the original GIC rate.
Redeemable GICs are useful for those who need more flexibility. They can be a good option for those looking to park their money in an account while assessing other investment options or preparing for an expense. By putting the money in a redeemable GIC, they can earn some interest on their money while still having the flexibility to withdraw it at their will.
Registered and Non-Registered 6-Month GICs
You can invest in GICs through non-registered accounts or through a registered account, such as a TFSA (Tax-Free Savings Account), an RRSP (Registered Retirement Savings Plan), RESP (Registered Education Savings Plan) and more. You may get some tax benefits by investing in GICs through registered accounts. Therefore, it may be worth considering GIC investment options provided by the financial institution where you have your registered account.
Best 6-Month GICs in Canada
EQ Bank 6-Month GIC Rates
- Minimum Investment: $100
- Eligible for: RRSP, TFSA, FHSA (rates may vary)
Current EQ Bank Non-Redeemable GIC Rates as of May 01 2024
CIBC 6-Month GIC Rates
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RRIF, and LIF (rates and minimum investment may vary)
Current CIBC Non-Redeemable GIC Rates as of May 01 2024
TD 6-Month GIC Rates
- Minimum Investment: $5,000
- Eligible for: TFSA (min. $5,000); RSP, RIF, LIF, and RESP (min. $2,000)
Current TD Non-Redeemable GIC Rates as of May 01 2024
BMO 6-Month GIC Rates
- Minimum Investment: $5,000
- Eligible for: TFSA, RESP and RDSP (min. $1,000)
Current BMO Non-Redeemable GIC Rates as of May 01 2024
Scotiabank 6-Month GIC Rates
- Minimum Investment: $500
- Eligible for: RRSP, TFSA, RESP, RRIF, LIF, and RDSP (min. $500)
Current Scotiabank Non-Redeemable GIC Rates as of May 01 2024
RBC 6-Month GIC Rates
- Minimum Investment: $5,000
- Eligible for: RRSP, TFSA, RESP, RRIF, LIF, and RDSP (min. $500)
Current RBC Non-Redeemable GIC Rates as of May 01 2024