Updated March 2025 · 8 min read
A Guaranteed Investment Certificate (GIC) is one of Canada's safest investments — you deposit money for a fixed term and receive a guaranteed interest rate. With rates from the Bank of Canada having risen significantly since 2022, GICs have become genuinely competitive compared to equity returns on a risk-adjusted basis.
Rates are approximate and change frequently. Always verify directly with the institution before investing.
| Institution | 1-Year | 2-Year | 3-Year | 5-Year | CDIC? |
|---|---|---|---|---|---|
| EQ Bank | ~4.50% | ~4.00% | ~3.90% | ~3.80% | Yes |
| Oaken Financial | ~4.55% | ~4.10% | ~4.00% | ~3.90% | Yes (via CDIC members) |
| Peoples Bank | ~4.40% | ~3.95% | ~3.85% | ~3.75% | Yes |
| Laurentian Bank | ~4.20% | ~3.80% | ~3.75% | ~3.65% | Yes |
| Credit unions (varies) | Up to 4.75% | Up to 4.25% | Up to 4.10% | Up to 4.00% | DICO (provincial) |
| TD Bank | ~2.50% | ~2.25% | ~2.20% | ~2.15% | Yes |
| RBC | ~2.40% | ~2.20% | ~2.15% | ~2.10% | Yes |
| Scotiabank | ~2.50% | ~2.25% | ~2.20% | ~2.15% | Yes |
EQ Bank (a subsidiary of Equitable Bank, a Schedule I Canadian bank) consistently offers some of the highest GIC rates in Canada. Deposits are CDIC-insured up to $100,000. EQ Bank GICs are available directly through their website with no minimums on most products and a straightforward account opening process.
EQ Bank also offers GICs inside TFSAs and RRSPs, making it easy to hold tax-sheltered guaranteed returns.
Oaken Financial is the direct-to-consumer brand of Home Trust Company and Home Bank, both CDIC members. Oaken consistently ranks among the highest GIC rates in Canada and offers terms from 30 days to 5 years. Available online or at Oaken storefronts in major cities.
Credit unions often offer even higher rates than online banks, but deposits are not CDIC-insured — they're covered by provincial deposit insurance schemes (DICO in Ontario, CUDIC in BC, etc.). Coverage varies by province but often covers the full amount (unlimited in some provinces). Research your provincial scheme before depositing large amounts.
| GIC Type | Rate | Early Redemption | Best For |
|---|---|---|---|
| Non-redeemable | Highest | Not permitted | Money you won't need until maturity |
| Cashable/redeemable | Lower (~0.5% less) | Allowed after 30–90 days | Emergency fund, uncertain timeline |
| Market-linked GIC | Variable (market-dependent) | Usually not | Guaranteed principal with upside potential |
| TFSA GIC | Same as non-reg | Depends on type | Tax-free guaranteed income |
| RRSP GIC | Same as non-reg | Depends on type | Tax-deferred guaranteed income near retirement |
GIC laddering spreads your investment across multiple maturity dates so you're not locked into one term. Example: invest equal amounts in 1-year, 2-year, 3-year, 4-year, and 5-year GICs. Each year, one GIC matures — reinvest at the then-current 5-year rate. This provides liquidity every year while capturing longer-term rates.
A TFSA GIC is one of the most tax-efficient low-risk investments available. Interest earned inside the TFSA is completely tax-free. With 1-year rates around 4–4.5% in 2025, a $50,000 TFSA GIC earns $2,000–$2,250 tax-free. Outside a TFSA, that same interest would cost $660–$740 in tax (at a 33% marginal rate).
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