A Guaranteed Investment Certificate (GIC) is one of Canada's safest investments — your principal is guaranteed, and you earn a fixed interest rate for a set term. In 2025, GIC rates remain attractive following the Bank of Canada's rate cycle, and online banks consistently offer significantly higher GIC rates than Big 5 banks.
A GIC is a deposit product where you agree to lock your money in for a set term — typically 30 days to 5 years — in exchange for a guaranteed interest rate. At the end of the term, you receive your principal plus the earned interest. Most GICs are non-redeemable before maturity (though cashable GICs exist at lower rates).
GICs are CDIC-insured for terms up to 5 years, making them one of the safest investments available to Canadians.
EQ Bank offers some of the best GIC rates available in Canada across all terms. You can hold GICs in a TFSA, RRSP, FHSA, or non-registered account. Their online process is straightforward, and the rates are typically well above Big 5 bank GIC rates. EQ Bank is a CDIC member (Equitable Bank), so GICs up to 5 years are insured.
Oaken Financial, operated by Home Bank and Home Trust, consistently offers some of the highest GIC rates in Canada. They are CDIC members and offer both registered and non-registered GIC options. Worth checking alongside EQ Bank for the best rate on a specific term.
Both offer GICs at competitive rates, though generally below EQ Bank and Oaken Financial. Their advantage is convenience for existing account holders.
RBC, TD, BMO, Scotiabank, and CIBC offer GICs but at rates consistently below online banks. The convenience of holding a GIC at your existing bank is rarely worth the rate sacrifice, which can be 1–2% per year on longer terms.
| Term | Online Banks (EQ/Oaken) | Big 5 Banks |
|---|---|---|
| 90 days | 3.50–4.50% | 1.50–2.50% |
| 6 months | 3.75–4.75% | 2.00–3.00% |
| 1 year | 4.00–5.00% | 2.50–3.50% |
| 2 years | 3.75–4.75% | 2.25–3.25% |
| 3 years | 3.50–4.50% | 2.00–3.00% |
| 5 years | 3.25–4.25% | 2.00–3.00% |
Rates are approximate ranges as of early 2025. Verify current rates directly with each institution.
Holding a GIC inside a TFSA means the interest earned is completely tax-free. This is the best structure for most Canadians with available TFSA room. In a non-registered account, GIC interest is taxed as regular income in the year it's earned (or accrued, for multi-year GICs).
Priority order for GIC placement:
Non-redeemable GICs offer higher rates but lock your money in until maturity. You cannot access funds early without penalty (or at all, at some institutions). Best for money you are certain you won't need.
Cashable GICs allow early redemption (typically after 30–90 days) but offer lower rates. Better for funds you might need access to.
For an emergency fund, use a HISA (fully liquid, no lock-in). For surplus savings beyond your emergency fund, non-redeemable GICs typically offer the best rate.
A GIC ladder involves splitting your investment across multiple terms so that portions mature each year. For example:
As each GIC matures, you reinvest at the new prevailing rate. This strategy gives you regular access to a portion of your funds while capturing longer-term rates and averaging out rate fluctuations over time.
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Open KOHO Free — Use Code 45ET55JSYAGICs from online banks like EQ Bank offer meaningfully better rates than Big 5 banks with equivalent CDIC protection. For medium-term savings (1–5 years) that you won't need access to, a GIC ladder at EQ Bank inside a TFSA is one of the best risk-free strategies available to Canadians in 2025.