10 Best GIC Rates in Canada (2022): Earn High Interest

Want to earn a high-interest rate without any risk?

Guaranteed investment certificates (GICs) could be a good option for you.

It’s one of the easiest and secure ways to earn interest income.

Here are some of the best GIC rates in Canada (updated November 2, 2022):

Bank Name1-Year GIC2-Year GIC3-Year GIC4-Year GIC5-Year GIC
EQ Bank4.85%4.90%4.90%4.75%4.75%
Simplii Financial4.50%4.05%4.10%4.15%4.20%
Tangerine Bank4.85%4.70%5.10%4.80%5.20%
Motive Financial4.70%4.85%5.05%4.90%5.10%
Peoples Trust*5.00%4.75%4.75%4.60%4.60%
Oaken Financial4.70%4.50%4.50%4.50%4.65%
Hubert Financial4.40%4.40%4.55%4.75%5.00%
Meridian Credit Union4.50%4.60%4.65%4.70%4.80%
ICICI Bank4.25%4.30%4.00%4.00%4.00%
Canadian Tire Bank3.55%4.00%4.10%4.15%4.70%

What Is a GIC?

GIC is a safe and secure investment that involves basically no risk. GICs generally offer better interest rates; however, with a tradeoff, i.e., you usually have to lock in your money for a specified period.

During this maturity period, you can’t cash in your deposits as you can with a savings account. However, banks and credit unions have introduced some flexibility for investors by branching out GIC into several types.

Types of GICs

You can classify GICs mainly in four categories:

  1. Traditional GIC: A fixed-rate non-redeemable investment. Here, you get a fixed interest rate on your investment that is locked in for a specified period.
  2. Redeemable (Cashable) GIC: Works pretty similarly to a savings account. Here, you can withdraw your savings before maturity. The interest rates offered at redeemable GICs are lower than non-redeemable ones.
  3. Variable-Rate GIC: The interest rate will change as overall borrowing rates go up or down. They’re great during rising interest rate environments, but not so good when they’re going down.
  4. A Market-Linked GIC: Its interest rate changes with the underlying stock or equity. This type of GIC is ideal when the market is on a bullish streak, but not great during a recession.

Do You Even Need a GIC?

I personally never buy GICs. Anytime you tie your money up for a certain amount of time, your financial freedom is restricted. I prefer to use a high-interest savings account (HISA) in most situations where I need to hold cash equivalents.

For example, EQ Bank has HISA rates and you get much more freedom with your money. The everyday savings rate is 2.50% so it might not even be worth it to get a locked-in GIC.

You can read more about EQ Bank HISA in my full review here.

Overview of GIC Banks

EQ Bank GIC Rates

EQ Bank is one of the most popular online banks in Canada. The EQ Bank GIC rates are quite remarkable.

Get a GIC at EQ Bank here.

Simplii GIC Rates

Simplii Financial is the online banking division of CIBC. It was founded in 2017 and now offers a host of financial services.

Besides investments, you can also use Simplii Financial for a mortgage and other borrowing services. You can have GIC locked in Simplii with as low as $100 of principal.

Tangerine GIC Rates

Tangerine is a direct bank that has been around since 1997. In 2012, Scotiabank made a successful acquisition of Tangerine. Today, Tangerine is one of the biggest online banks in Canada. The bank offers competitive GIC rates without any hidden service fees.

Motive Financial GIC Rates

Motive Financial is a virtual division of the Canadian Western Bank. The bank offers savings, registered accounts, and GICs on rates that are different than that of CWB.

Motusbank GIC Rates

Motusbank is a relatively new name in the online banking sector. However, it stands on the credibility of Meridian, which serves more than 300,000 members.

Peoples Trust GIC Rates

Peoples Trust is a CIDC-insured trust company based in Vancouver. It is primarily known for its mortgage servicing. It also offers credit cards and high-interest investment options.

Oaken GIC Rates

Oaken Financial is an online bank under Home Bank and Home Trust Company, one of Canada’s largest trust entities. Oaken Financial offers reasonable rates on its long-term non-redeemable GICs. You need to at least lock in $1,000 to have GIC with Oaken Financial.

Hubert Financial GIC Rates

Hubert Financial is an online bank offering deposit services, mortgages, and credit cards. It also offers better GIC rates than big banks.

ICICI Bank Canada GIC Rates

ICICI is an Indian multinational financial and banking service that also operates in Canada and is serving a large chunk of diaspora and the local population.

Canadian Tire GIC Rates

Canadian Tire, the mega-chain retailer, really does sell everything. Yes, even Canadian Tire offers GICs. You can check out their rates here.

How to Get the Best GIC Rates?

GICs offer better interest rates than savings accounts. However, you can also pick the best among betters by choosing the GICs issued by an online bank or a credit union.

Online banks can offer higher GIC rates because they are saving a lot in overhead expenses.

Conclusion

As you can see, online banks offer a much better interest rate than most of the big traditional banks. 

Be careful with GICs, as you are locking in your money for the length of the term. 

If you need the flexibility of being able to withdraw your money at any time, a high-interest savings account might be better for you.

Check out my list of the best high-interest savings accounts in Canada.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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