|Registered / TFSA
Guaranteed Investment Certificates (GICs) are a popular form of low-risk investment in Canada. GICs offer guaranteed returns on investments while ensuring that the principal investment stays protected. Many Canadian banks and credit unions offer GIC investments; however, they all offer different rates for different term lengths. Most GICs in Canada are insured by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000 per account. Meanwhile, provincial deposit insurers insure GICs offered by provincial credit unions.
There are many types of GICs available in Canada, the most common being non-redeemable GICs. Other types of GICs available in Canada are redeemable GICs, cashable GICs, U.S. Dollar GICs, and market-linked GICs. GICs can be held in non-registered investment accounts, as well as registered investment accounts, such as Tax-Free Savings Account (TFSA), Registered Retirement Savings Plans (RRSP), First Home Savings Account (FHSA) and Registered Education Savings Plan (RESP).
Launched in 2016, EQ Bank is Equitable Bank’s digital banking platform that offers various savings and investment options, including GICs. The GIC options offered by EQ Bank are all non-redeemable GICs, which means that the initial investment of the GICs is locked for the term of the GIC and cannot be accessed till maturity. However, EQ Bank allows you to cancel a GIC within one day after the ‘Effective Date.’ As EQ Bank GICs are non-redeemable with a fixed interest rate, they yield fixed returns, which means that you can calculate the exact returns on the GIC before investing in it. EQ Bank offers some of the highest GIC rates in Canada for both registered and non-registered investments. EQ Bank currently does not offer any cashable or redeemable GIC options.
Minimum and Maximum Investment: EQ Bank’s minimum deposit is among the lowest in Canada, and you can start investing in the bank’s GICs with as little as $100. The maximum deposit allowed by the bank per GIC is $100,000. EQ Bank allows each customer to hold up to 20 GICs, and a maximum amount of $500,000 (excluding interest earned).
EQ Bank offers non-registered GIC options starting for terms ranging from 3 months to 10 years. As mentioned earlier, the GICs are non-redeemable, which means if you purchase a 1-year GIC, your principal investment is locked away for a year, and you can access it only after the GIC matures. The minimum investment required is $100, and you can purchase the GIC from your EQ Bank cell phone application or online banking portal within seconds if you already have an EQ Bank Savings Plus account. Any returns earned on non-registered investments are taxable, including those on non-registered GICs. The interest earned will be included on your T5 tax slip.
To invest in EQ Bank RSP GICs, you first need to open an EQ Bank RSP account from EQ Bank’s online banking portal or cell phone application. The term lengths available are from 3 months to 10 years, and the minimum investment amount is $100. EQ Bank’s RSP GICs are not available in Quebec.
FHSA is a type of registered account introduced in Canada in 2023. This account combines features of RRSP and TFSA and is meant for saving for the purchase of a first home in Canada. To invest in this GIC, one must first open an FHSA account with EQ Bank. Similar to other GIC options offered by the bank, this GIC is also available for terms ranging from 3 months to 10 years and requires a minimum investment of $100.
A Tax-Free Savings Account (TFSA) is one of the most popular registered accounts in Canada, as the returns earned in this account are not taxable. To start investing in EQ Bank’s TFSA GICs, one must have an EQ Bank TFSA Account, which can be opened using the EQ Bank's online banking portal or cell phone application. The terms available for EQ Bank TFSA GICs are from 3 months to 10 years. The minimum investment is $100, and the maximum investment per GIC is $100,000.
EQ Bank is a digital bank, and thus its GICs can be purchased through the bank’s cell phone application or online banking portal. To get started, you must first open an EQ Bank Savings Plus account through the bank’s website or through its cell phone application, which will be used to fund the GIC. The requirements for purchasing an EQ Bank GIC are:
The easiest way to purchase a GIC is through the EQ Bank’s banking app. You can follow the steps below:
You can also log in to your account on EQ Bank’s online banking portal and purchase a GIC through it. For questions regarding EQ Bank GICs, you can contact the bank at 1-844-437-2265.
While EQ Bank’s GIC cannot be redeemed until maturity, the bank gives you the option to cancel the GIC within one day after the ‘Effective Date.’
Once the GIC matures, the principal and the returns earned will be deposited into the relevant account. For example, a TFSA GIC will be redeemed in your TFSA. It should be noted that EQ Bank currently does not offer the option to auto-renew, which means the GIC would not be re-invested automatically at maturity.