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Best EQ Bank GIC Rate

Best EQ Bank GIC Rate

EQ Bank is the digital arm of Equitable Bank, Canada’s ninth largest independent Schedule I Bank. Equitable Bank has approximately $31 billion of assets under management. EQ Bank provides digital banking services to more than 81,000 Canadians. It is an online-only bank, so it does not have branch locations. The bank offers some of the lowest fees in banking and other additional benefits because it does not have the same level of costs as traditional banks.

The appeal of EQ Bank lies in the high-interest rates offered on Savings Plus Accounts and Guaranteed Investment Certificates (GICs). The savings account has no monthly fees, no minimum balances, and the number of day-to-day transactions is unlimited. EQ Bank does not provide personal cheques or debit cards to its customers. Instead, customers can move their money between their EQ Bank accounts and linked accounts. Customers can also send money through EQ Connections and Interac e-Transfers®.

Popular GIC Terms

EQ Bank GICs come with various terms ranging from 3 months to 5 years. Popular terms are 1-year, 2-year, 3-year, 4-year, and 5-year term. The most recommended is 1-year GIC. The interest rate is currently set at 2.40 percent. The 5-year GIC is priced at 2.60 percent. It provides the highest rates and allows an investor to maximize returns. In all cases, interest is accrued for the entire term and no interest is earned on the maturity date.

5 Results Updated: September 18, 2019

2.33%

Interest Rate

3 Months

Term

$100

Minimum Investment

Institution:  EQ Bank
Institution Type: Online Bank
Interest Rate Compounded: Daily
Type: -

2.35%

Interest Rate

6 Months

Term

$100

Minimum Investment

Institution:  EQ Bank
Institution Type: Online Bank
Interest Rate Compounded: Daily
Type: -

2.40%

Interest Rate

1 Year

Term

$100

Minimum Investment

Institution:  EQ Bank
Institution Type: Online Bank
Interest Rate Compounded: Annually
Type: -

2.45%

Interest Rate

2 Years

Term

$100

Minimum Investment

Institution:  EQ Bank
Institution Type: Online Bank
Interest Rate Compounded: Annually
Type: -

2.50%

Interest Rate

3 Years

Term

$100

Minimum Investment

Institution:  EQ Bank
Institution Type: Online Bank
Interest Rate Compounded: Annually
Type: -

Why Invest in GIC

A GIC is a safe and secure investment with minimal risk. A GIC deposit with EQ Bank is eligible for Canada Deposit Insurance Corporation (CDIC) deposit insurance coverage. GICs deposits are protected up to $100,000. The money deposited into an EQ Bank GIC is guaranteed to provide a specific rate of return. Since the rate is fixed, an investor will not have to worry about price fluctuations every time interest rates change.

The terms are flexible. An investor can choose a term based on particular goals. GICs are a good investment option for any age group. People can buy GICs to put in tax-sheltered plans such as RRSPs, TFSAs, and RESPs. The flexibility makes them an ideal product for people with different financial goals at various stages of their lives. But GICs are non-redeemable. An investor can only cancel a purchase online if it is within one business day after the effective purchase date.

A good thing about EQ Bank GICs is the low minimum deposit. An investor can buy a GIC through the bank with as little as $100. This is not possible with most financial institutions. The low minimum deposit is convenient for many people.

Returns on Savings

EQ Bank GICs are popular because of their high returns. All an investor has to do is select a term, deposit funds, and watch it grow. On the maturity date, the principal and any interest earned will be deposited in an investor’s account.

If an investor does not need the money when a GIC matures, it can be reinvested in another GIC. With the fixed-rate, an investor will always know the amount of money to expect. GIC returns are higher than other fixed-income choices such as government bonds. They are a good choice for people who are looking for guaranteed returns with no fees.

Through GIC laddering an investor can get some regular income. It is usually recommended for people who need frequent access to funds. This strategy involves buying GICs that mature at different times. If the money is not needed, as each GIC matures, the money can be reinvested in a new GIC. This creates a cycle of GICs that mature regularly. The strategy will allow a client to invest more money. It is a good and smart way to maximize returns.

Editor’s Review

EQ Bank is a great option for its savings account and GIC interest rates. With the Savings Plus Account, there are no monthly fees, transaction limits, and minimum balances. The bank offers some of the highest interest rates around. EQ Bank GICs are ideal for anyone looking for a guaranteed, low-risk investment. They also provide a passive regular income source and can be used to save for particular goals. GICs can bring security and growth to any investment portfolio. With all the good the bank provides, there are some minor downsides. Lack of a debit card may make it a bit difficult to access funds from the bank. EQ Bank GICs do not also offer enough liquidity in the event of an emergency.