The best GIC rates in Canada for 2025

GIC comparison tool

Find the best and most up-to-date GIC rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated rate of return based on the size of your balance.

Highest GIC rates in Canada

Banks, credit unions, trust companies and discount brokerages all offer GICs. Below, you’ll find the best rates available from a variety of financial institutions, including credit unions and Canada’s Big Six banks. The rates listed are for non-redeemable GICs held in non-registered accounts—the most popular type of GIC in Canada. A member of our editorial team reviews these rates daily, so you can rest assured the information is accurate.

GIC rates from Canada’s Big Six banks

The rates listed are for non-redeemable GICs held in non-registered accounts. The rates are verified and updated every weekday.

What is a GIC?

Guaranteed investment certificates (GICs) are termed loans you make to a bank or other financial institution. When you purchase a GIC, you agree to a specific term (period of time) during which your deposit will remain with the bank. In return, the bank offers you a guaranteed interest rate. You can usually invest in a GIC for as little as $500, and there’s typically no fee associated with buying one. Certain types of GICs allow you to withdraw some or all of your money early.

GICs must be purchased within an account. There are many types of accounts to choose from, including non-registered accounts (such as a cash or margin account) and registered accounts, like an RRSP, TFSA, first home savings account (FHSA), registered education savings plan (RESP) or registered retirement income fund (RRIF). Investments in these accounts carry different tax implications, so consider speaking to an advisor or your financial institution if you’re unsure which is right for you. Once you’ve opened the account, buying GICs is pretty simple.

Types of GICs available in Canada

There are many different kinds of GICs, but these are the most common.

GIC pros and cons

Pros

• GICs are very low-risk, since your principal investment is guaranteed to be paid back.
• You’ll receive a guaranteed rate of interest when the GIC matures—no need to worry about market volatility.
• GICs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, if purchased at a CDIC member institution. This means your principal is safe even if the financial institution fails.
• You can hold GICs in both registered and non-registered investments accounts.

Cons

• Your money will be tied up in the GIC until its maturity date, unless you cash it in early (perhaps paying a penalty) or you choose a redeemable GIC (likely with a lower interest rate than a non-redeemable GIC).
• The interest rate you earn on a GIC may not be high enough to keep up with inflation. According to the Consumer Price Index, the current inflation rate in Canada is 1.7%.

Compare GIC providers in Canada

Are GICs safe?

GICs are popular investments because they offer guaranteed returns. The financial institution selling the GIC is legally obligated to return the initial investment along with the agreed-upon interest. If the institution fails, additional protection comes into play. Many GICs in Canada, including foreign-currency GICs, are covered by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000. Provincial insurers also provide coverage, with varying limits.

Video: How the Bank of Canada’s interest rate affects you

How to buy a GIC

GICs are available from banks and other providers. But before you contact a GIC issuer, it’s important to decide how much you’d like to invest. Minimum investments can range from $100 to $5,000, depending on the institution. So the amount you’d like to invest will narrow down your options. Then, shop around for a variable or fixed rate and decide on the accessibility and flexibility you wish for the funds. Finally, once you know your requirements, contact the financial institution of your choosing to start the process of purchasing. Here’s what you need to know about the different methods of purchasing GICs.

• Online/by phone: You will either have an existing account set up with the financial institution or will have to submit an application and pieces of identification to verify your identity, including your Social Insurance Number (SIN). Once the account is created and linked to your primary funding source (like a chequing account), the principal investment is withdrawn and the GIC is issued. The rate table above can connect you to some of the top options in Canada right now.

• In person: You can go into a branch to purchase a GIC. Once again, the process is easier if you already have a profile set up with the financial institution, but if not, you’ll need to make an appointment with pieces of ID, including your SIN, complete an application and follow the institution’s process to fund and issue your GIC.

• Deposit brokerage: Deposit brokerages help you do the research and are tuned into the best options on the market today. They also know which GIC issuers are eligible for CDIC coverage, to ensure your investment is protected in case of a bankruptcy. They work with multiple banks, so you can dig through an assortment of rates and terms to find the option that works best for your needs. The broker is paid by the financial institution. Consumers should always pay the financial institution directly—not the broker. As brokers often bring multiple consumers’ investments to banks, those consumers are sometimes able to benefit from better rates—similar to the benefits of shopping in bulk. 

GIC laddering

GIC laddering is when you buy GICs that mature at different times, allowing you to collect a steady stream of income. For example, if you buy a one-year, a two-year and a three-year GIC on the same day, you’ll receive the payouts at regular intervals (one, two and three years after the purchase date). 

Laddering GICs comes with several benefits:

• Laddering gives you greater access to your funds without any penalties, as you have the option to reconsider investing the funds every time a GIC matures.
• When you are invested in GICs with a range of maturity dates, your interest-rate risk is reduced because you aren’t locking all of your funds in for the same period.
• Buying several laddered GICs during a time of strong interest rates effectively “locks in” the competitive rates for longer.  
• Done effectively, laddering can provide regular income.

GIC withdrawal penalties

Like most fixed-income securities, there is a usually costly penalty for withdrawing your money early (i.e., before the maturity date). 

Investors who may need access to their funds before their maturity dates should purchase cashable or redeemable GICs, which allow you to cash your investment at any time at no extra cost. Keep in mind that cashable GICs usually pay significantly less interest.

Registered and non-registered GICs

GICs can be held in non-registered and registered accounts. 

• Non-registered accounts are savings or investment accounts that allow you to hold assets (without the tax advantages of registered accounts), including cash accounts, margin accounts and high-interest savings accounts.
• Registered accounts include TFSAs, RRSPs, FHSAs, RESPs and RRIFs, which allow your investments to grow tax-free. The government encourages Canadians to save more of their income through the incentives included with these accounts. 

The best time to buy GICs

The best time to buy a GIC is when you’re saving up for a goal, like school tuition, a down payment or a trip. But it can also be good to invest in GICs when you’re feeling risk-averse. You might be considering a GIC as a way to balance your portfolio or to generate some passive income in retirement or if you’re taking time off work to raise your family, for example. While GICs don’t tend to have the highest interest rates of all the investment vehicles available to Canadians, they do offer a low-risk way to store money while earning some interest.

If you’re considering adding a GIC to your portfolio, you’ll want to pay attention to a few key numbers. The interest rate of the GIC itself is a good starting point. Generally, the higher the interest rate, the more attractive the product. It also pays to look at the likely rate of inflation or deflation you can expect during the term, to determine whether that factor is likely to eat into your profits or enhance them. If you find that the numbers work out, a GIC can be an excellent no-risk investment for a set period of time.

More GIC questions, answered

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