Best GIC Rates in Canada: Where to Find the Highest Returns Now

Best GIC Rates in Canada: GIC (Guaranteed Investment Certificate) is issued by banks and trust companies It offers fixed return for a predefined time period. But its return is less as compared to the stocks, mutual funds, bonds or other investment options. The GIC interest rate changes on a number of levels

Contents

1 What are the best GIC rates in Canada?
2 GIC Features and Benefits
3 Types of GICs
4 Best GIC Rates in Canada Today
5 Conclusion
6 FAQs GIC Rates

What are the best GIC rates in Canada?

The best GIC rates in Canada are offered by many financial institutions. These include RBC ESG Market-Linked GIC, CIBC Index Growth GIC, EQ Bank, Tangerine and many others. Some institutions also allow their clients to withdraw funds before maturity, but a penalty may have to be paid for this.

GIC Features and Benefits

GIC investing has many benefits:

Guaranteed rate of return: It provides a guarantee of fixed returns.
Low risk: The risk in its investment is very low.
Diversification of portfolio: It diversifies the investor’s portfolio.
Steady income: It provides regular income even during recession.
Different tenure options: Options available are 1 year, 5 years, 2 years, 18 months, etc.
GIC Laddering: It allows the investor to invest in GICs of different tenures.

Also Read: BMO Line of Credit in Canada

Types of GICs

Different types of GICs are available:

Fixed-rate GICs
Escalator GICs
Market-linked GICs
Variable rate GICs

Investors can estimate the returns they will get by looking at the amount, interest rate and tenure of the GIC as per their needs. Increasing interest rates in long-term GICs can make a huge difference to the customers.

Best GIC Rates in Canada Today

The following are the best GIC rates in Canada today:

Bank	Term	Annual Rate	Half-Year Rate	Monthly Rate	Minimum Deposit
Home Trust Company	1 Year	5.65%	5.60%	5.55%	$1,000
Saven Financial	1 Year	5.00%
ICICI Bank	1 Year	5.00%
Tangerine	1 Year	5.70%
Oken Financial	1 Year	5.05%	5.70%	5.65%	$1,000
WealthOne Bank of Canada	1 Year	5.98%			$1,000
EQ Bank	1 Year (Non-Registered)	5.65%
Peoples Bank	1 Year (Long Term GIC)	5.80%
Laurentian Bank	3 Years	5.35%			$500

Conclusion

GIC rates may change in the future. Hence, it is important to re-check the current rates and other important aspects before investing. Investors can consider various options as per their needs and plan their investments properly.

FAQs GIC Rates

Will Interest Rates Lower in Canada?

The Bank of Canada has already implemented two interest rate cuts in 2024, and indications suggest that further cuts may be on the horizon. This outlook is based on current economic conditions and the Bank’s policy goals.

Who Has the Best GIC Rates in Canada?

As of August 9, 2024, the best GIC rates in Canada are:
– Oaken Financial: 5.05% (1-year, 2-year)
– Saven Financial: 5.00% (1-year)
– ICICI Bank: 5.00% (1-year)

Who Controls Interest Rates in Canada?

Bank of Canada sets key interest rates, influencing overall borrowing and lending rates in the economy.