Best GIC Rates in Canada
| Provider | 1-Year |
|---|---|
Note: Interest for 6-month GICs are paid at maturity.
*Compounded monthly
What are the Highest GIC Rates available in the market?
As of April 25, 2025
- The Highest 3-month GIC Rate is 3%, offered by Tangerine, which is 0 bps higher than 30 days ago and 0 bps higher than 7 days ago
- The Highest 6-month GIC Rate is 3.25%, offered by ICICI, which is 0 bps higher than 30 days ago and 0 bps higher than 7 days ago
- The Highest 1-year GIC Rate is 3.7%, offered by WealthONE, which is 5 bps lower than 30 days ago and 0 bps higher than 7 days ago
- The Highest 2-year GIC Rate is 3.7%, offered by WealthONE, which is 0 bps higher than 30 days ago and 0 bps higher than 7 days ago
- The Highest 3-year GIC Rate is 3.75%, offered by WealthONE, which is 10 bps higher than 30 days ago and 0 bps higher than 7 days ago
- The Highest 4-year GIC Rate is 3.7%, offered by WealthONE, which is 5 bps higher than 30 days ago and 0 bps higher than 7 days ago
- The Highest 5-year GIC Rate is 4%, offered by WealthONE, which is 30 bps higher than 30 days ago and 0 bps higher than 7 days ago
Historical GIC Interest Rates
By Term Length, Non-Redeemable GICs
About GICs
The content below, excluding GIC rates, was last updated on: May 8th, 2024
What is a GIC? A GIC is a Guaranteed Investment Certificate. It is a type of investment that offers a guaranteed rate of return over a fixed period of time.
GICs are considered low-risk investments, as they offer a secure and predictable return on your money. At banks, they’re also protected by the CDIC for up to $100,000. This makes them an attractive option for those who are risk-averse or looking for steady growth in their savings.
What Determines GIC Interest Rates
GIC interest rates are directly related to your bank's prime rate, which the Bank of Canada Rate influences. The Bank of Canada Rate is the rate at which the central bank lends money to commercial banks. When the Bank of Canada Rate goes up, so does your bank's prime rate and, consequently, the interest rates on GICs. As a result, it's crucial to understand the factors that cause the Bank of Canada Rate to change. If you expect rates to increase soon, a smaller GIC term could be better. This way, you can renew at higher rates instead of being stuck at a lower interest rate for a longer duration.
| Factors That Increase The BoC Rate | Factors That Decrease The BoC Rate |
|---|---|
How is GIC Interest Calculated in Canada?
For fixed rate GICs with a term longer than one year, the interest is usually compounded annually. This means that the interest earned in the first year is added to the initial GIC investment, and subsequent interest is calculated based on this new total.
The formula used for calculating annual compound interest on a fixed rate GIC is:
Where:
A = Amount you will receive back
P = Initial GIC investment
r = Interest rate, as a decimal
t = Number of years
In other words:
Years Long-Term GIC Interest Calculation Example
Let’s say that you purchased a 5-year Tangerine GIC that had a GIC rate of 5.00%. Tangerine doesn’t have a minimum investment on their GICs, so you decide to invest $1,000. How much will you receive after 5 years?
Using the GIC interest formula above,
After 5 years, the Tangerine GIC will pay you back $1,276.28. That’s slightly more than what you would expect to receive at 5%, or $50 per year, which would have been $1,250 (or $50 x 5 years). That’s because of compounding, when you earn interest on your already earned interest which is a very powerful tool in investing.
To break it down into years:
| Amount | Calculation | Interest Earned | |
|---|---|---|---|
| Initial Investment | $1,000 | - | - |
| Year 1 | $1,050 | $1,000 x 1.05 | $50 |
| Year 2 | $1,102.50 | $1,050 x 1.05 | $52.50 |
| Year 3 | $1,157.62 | $1,102.50 x 1.05 | $55.12 |
| Year 4 | $1,215.50 | $1,157.62 x 1.05 | $57.88 |
| Year 5 | $1,276.28 | $1,215.50 x 1.05 | $60.78 |
You’ll end up with $1,276.28 after five years, from a starting investment of $1,000. Notice how the interest earned in each year increases even though the initial investment remains the same. This is because each year, the interest rate is applied to the new total amount (which includes previous interest earned) rather than just the initial investment!
For some large GIC investments, you may even be able to get interest compounded quarterly or monthly. However, they usually have lower GIC rates than those offered for annual compounding.
Long-Term GIC Interest Calculation Example with Interest Paid Out
Some GIC providers, such as Tangerine, allow you to choose whether you would like interest to compound annually, or to have the interest paid out annually.
If you choose to have interest paid out annually, you’ll receive the interest in your linked bank account instead of having it added to your GIC. This can be beneficial for individuals who may need access to their interest income before the GIC matures, but it means you won’t benefit from compounding interest.
Let’s say that you purchased a 5-year Tangerine GIC for $1,000 that had a GIC rate of 5.00%, but you choose to have the interest paid out to you annually instead of letting it compound. How much will you receive after 5 years?
To break it down into years:
| Amount | Interest Paid Out | Ending GIC Balance | Total Interest Earned | |
|---|---|---|---|---|
| Initial Investment | $1,000 | - | - | - |
| Year 1 | $1,050 | $50 | $1,000 | $50 |
| Year 2 | $1,050 | $50 | $1,000 | $100 |
| Year 3 | $1,050 | $50 | $1,000 | $150 |
| Year 4 | $1,050 | $50 | $1,000 | $200 |
| Year 5 | $1,050 | $50 | $1,000 | $250 |
Since the 5% interest goes to your bank account, the GIC investment balance stays the same at $1,000. This means you’ll earn $50 per year for five years, or $250 in total.
Compare that amount to the $276.28 you would have earned if you let the interest compound. That’s $26.28 less that you would earn if you let the interest compounded annually, or 10% less interest!
Short-Term GIC Interest Calculation Example
Short-term GICs, which are those with a term of less than one year, usually have interest paid only at maturity.
Let’s say that you purchased a 3-month EQ Bank GIC that had a GIC rate of 3.00%, and you invested $1,000. How much will you receive after three months?
Since there is no compounding as interest is paid at maturity, the calculation in this case is a simple interest formula:
Where:
A = Amount you will receive back
P = Initial GIC investment
r = Interest rate, as a decimal
t = Number of years
Since GIC rates are quoted as an annual rate, but in this example we’re calculating interest for less than one year, we need to convert the GIC interest rate into the same time frame.
There are four periods of 3-months in a single year, so we will divide the GIC rate by four. That gives the equivalent interest rate earned over a 3-month period.
Going back to the formula:
After 3-months, a 3% GIC would earn you $7.50 in GIC interest.
Compare Canada’s Best GIC Rates
EQ Bank's Best GIC Rate
3.65%
5-year
Minimum
Investment:
$100
EQ Bank offers competitive GIC rates that are among the highest in Canada. Their GICs are available in a variety of terms, ranging from 3 months to 10 years, and they also offer registered GICs that include RSP GICs, FHSA GICs, and TFSA GICs. There is a minimum investment of just $100, and all deposits and interest earned are eligible for CDIC coverage up to applicable limits.
Oaken's Best GIC Rate
%
Minimum
Investment:
$1000
Oaken Financial offers GIC rates that are consistently higher than the average rates offered by other financial institutions in Canada. Their GICs are available in terms ranging from 30 days to 5 years, with a minimum investment of $1,000.
Tangerine's Best GIC Rate
3.80%
Minimum
Investment:
$1
Tangerine is unique in that they have no minimum investment requirement. This means that you can invest in Tangerine GICs with as little as $1! Their GICs are available in terms ranging from 90 days to 5 years.
RBC's Best GIC Rate
2.75%
5-year
Minimum
Investment:
$1000
RBC offers a range of GIC options, including fixed and variable rates, as well as market-linked GICs and even interest-linked GICs based on the prime rate! Their GIC terms range from 30 days to 10 years, with a minimum investment of $1,000 for most non-registered GICs and $500 for registered GICs. For GICs of 1 to 29 days, there's a minimum investment of $100,000.
TD's Best GIC Rate
3.00%
Minimum
Investment:
$1000
TD’s GIC offerings include short-term, long-term, market growth, cashable, and non-cashable GICs. Their terms range from as short as 30 days to as long as 5 years. The minimum investment amount varies based on the type of GIC but generally starts at $1,000 for non-registered and $500 for registered GICs.
CIBC's Best GIC Rate
2.90%
5-year
Minimum
Investment:
$1000
CIBC has many GIC options, including variable rate GICs, market-linked GICs, escalating rate GICs, and business GICs. Their GICs are available in terms ranging from 30 days to 5 years, with a minimum investment of $1,000 on most GICs. Some GICs have a lower minimum of $500, such as their escalating rate GICs.
Scotiabank's Best GIC Rate
2.85%
5-year
Minimum
Investment:
$500
Scotiabank’s GIC terms range from as short as 30 days to as long as 5 years, with a minimum investment typically starting at $500 for annual and semi-annual interest compounding. You can even get interest paid monthly with a minimum investment of $5,000 on some GICs! That can help with those needing some extra cash flow. The Guaranteed Income Optimizer has a term length of up to 10 years, but requires at least $5,000 to be invested.
History of GICs in Canada
Investments have been around in Canada since the early 1800s when individual investors would purchase government bonds. Around the 1950s, GICs were issued and became a popular investment choice because of their stability and fixed returns.
The early 2000s saw a decline in GICs due to low-interest rates, and high-returning tech stocks. However, they have made a comeback in recent years as investors have become more risk-averse. GICs are now one of Canada's most popular low-risk investment choices and are offered by banks, credit unions, and other financial institutions.
GIC Amount For International Students (SDS)
International students studying in Canada can purchase a GIC to expedite their study permit approval. The program is known as the Student Direct Stream (SDS). At a minimum, students must invest $10,000 to receive faster approval on their study permit. To obtain the expedited permit, you must meet the following criteria.
- Prove you have purchased a GIC
- Hold the GIC in an account that you can't access until you arrive in Canada
- Confirm your identity to the bank
- Receive a lump-sum withdrawal upon arrival with recurring payments
In most cases, each program works as follows. You initially wire transfer $10,000 plus any associated fees. When you arrive in Canada, you visit a branch of the corresponding bank and open an account by confirming your identity. Immediately, the bank will deposit $2,000 into your account. Afterwards, you will receive your initial investment plus interest payments as monthly deposits into your account. After one year, you will have fully received your money back plus interest.
Below, you can find more information on the student GIC programs from Canada's top banks.
| Program Name |
|---|
| Scotiabank StartRight Student GIC |
| CIBC International Student GIC |
| RBC International Student GIC |
| TD International Student GIC |
| BMO International Student GIC |
HSBC International Student GIC |
Comparing a GIC With Other Low-Risk Investments
A GIC is a type of low-risk investment. This means that you are not likely to lose money on your investment, but you are not expected to make much money.
The main advantage of a GIC is that it is a guaranteed investment. This means you will at least get your original investment back, plus any interest that has accrued, as long as you hold the GIC until it matures.
A GIC is a good investment for people looking for a low-risk way to save money. While most low-risk investments offer a low return, the primary disadvantage of a GIC is potentially being unable to access your money without incurring fees. Consider these other options if you prefer a higher return on investment or more liquidity.
Canada's Most Popular Low-Risk Investment
High-Interest Savings Account
A high interest savings account is generally the lowest-risk investment and most liquid. You will not lose money on a HISA and can transfer into a chequing account whenever necessary. Additionally, there will likely be no fees associated with a HISA. The main disadvantage to a HISA is that the interest gained will likely not keep up with inflation.
Money Market Fund
A money market fund is a type of mutual fund that invests in short-term debt securities, such as government bills and commercial paper. Money market funds are a type of low-risk investment because they invest in debt securities that are backed by the full faith and credit of the Canadian government or other entities.
The main advantage of investing in a money market fund is getting a higher return than you would with a HISA. Additionally, money market funds offer liquidity, meaning you can withdraw your money at any time without incurring a penalty. The main disadvantage of investing in a money market fund is that the return is not guaranteed, and there is the potential to lose money.
Fixed-Income Securities
Fixed-income securities are debt instruments that pay a fixed rate of interest over the life of the security. The most common type of fixed-income security is a bond.
The advantage of investing in fixed-income securities is that you know exactly how much interest you will receive and when you will receive it. Additionally, bonds are a low-risk investment because they are backed by the full faith and credit of the issuing entity. The main disadvantage of investing in fixed-income securities is that the return is not guaranteed. There is the potential to lose money if the issuer defaults on the payments. Increasing interest rates will also devalue the market value of your bond.
Tip: Differences Between a HISA, GIC and Mutual Fund
The main difference between a HISA, GIC and mutual fund is the level of risk. A HISA is a low-risk investment because the Canadian government backs up to $100,000 through CDIC.
While GICs are also low-risk and backed by CDIC, there are some additional limitations. For example, GICs typically require a minimum investment of $1,000 while many HISAs don’t have balance requirements. Additionally, there may be penalties for early withdrawals
A mutual fund is a higher-risk investment compared to GICs because any entity does not back it. Comparatively, all these investments are low risk when compared to equities or cryptocurrency.
The other main difference is the return on investment. A HISA has a guaranteed return, while a GIC can have a fixed or variable return. A mutual fund does not have a fixed return, and you may even lose money on the investment. The best option for you will depend on your investment goals and risk tolerance.
The Bottom Line
GICs are a low-risk investment choice that has been around in Canada for over 100 years. They offer stability and fixed returns, so they are one of the most popular investment options in the country. Depending on your investment goals, GICs may be the right option for you. Research and compare rates from various financial institutions to find one that aligns with your investment goals and risk profile. Keep in mind that GIC rates are subject to change and may vary depending on the type of GIC chosen, the term length, and the minimum investment amount.
Disclaimer:
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