Updated: April 2025  |  bremo.io financial guides

Best GIC Rates Canada 2025 — Compare All Terms

GIC (Guaranteed Investment Certificate) rates in Canada vary significantly between institutions. In 2025, the best GIC rates sit between 4.0% and 5.5%, with shorter terms often offering competitive rates as the Bank of Canada's rate cycle matures.

This guide helps you compare current GIC rates across all terms and find the best guaranteed return for your money.

Current GIC Rate Environment

Following the Bank of Canada's rate adjustment cycle, GIC rates in 2025 remain attractive relative to recent history. The best institutional rates for non-redeemable GICs range from approximately 4.0% to 5.0% for 1-year terms, with longer-term rates varying based on the rate environment and institution.

1-Year GIC Rates

One-year GICs offer flexibility while capturing current rates. If rates remain elevated or rise further, you can reinvest at a new rate in 12 months. Best 1-year non-redeemable rates at online banks and trust companies in 2025 are consistently above 4.0% at competitive institutions.

2-Year GIC Rates

Two-year GICs lock in slightly longer for a potentially higher rate. Good for money you're confident you won't need for two years. Rates are close to 1-year rates in a flat yield curve environment.

3-Year GIC Rates

Three-year terms offer a middle ground. Historically, longer terms pay higher rates, but in an inverted yield curve environment (shorter rates higher than longer), 1-2 year GICs may outperform 3-year options.

5-Year GIC Rates

Five-year GICs suit money you won't need for five years. They provide certainty over a longer period and are popular for RRSP GIC ladders approaching retirement.

Where to Find the Best Rates

• Oaken Financial: Consistently among the top rates for 1–5 year terms
• EQ Bank: Competitive GIC rates with CDIC insurance
• Peoples Trust: Regularly competitive across all terms
• Achieva Financial: Manitoba credit union with strong rates
• Outlook Financial: Strong rates, provincial deposit insurance

Non-Redeemable vs. Cashable GIC Rates

Non-redeemable GICs pay more because you surrender liquidity. Cashable GICs typically pay 0.25–0.75% less. If you're certain you won't need the money, go non-redeemable for the best rate.

GIC Rate Laddering

Instead of committing $50,000 to a single 5-year GIC, split it into five $100 GICs with terms of 1, 2, 3, 4, and 5 years. As each matures annually, reinvest for 5 years. After 5 years, you have a GIC maturing every year at 5-year rates — the best of both worlds.

Tax on GIC Interest

Interest on non-registered GICs is taxable in the year it accrues, even for multi-year GICs where interest is paid at maturity. Hold GICs inside a TFSA or RRSP to eliminate or defer this tax burden.