Looking for top banks and lenders that offer the best GIC rates in Canada? If you’re looking for a short-term cashable GICs or long-term investments like an RRSP GICs, we can help you with a thorough GIC rate comparison to find great GIC options. Search GIC rates that best suit and serve your saving and investment goals...
Why compare GIC rates?
Interest rates for GICs between different financial institutions vary a great deal and, the investment plans and products within each institution feature different rates, terms, and benefits, manual research can be time-consuming. Furthermore, it’s easy to miss out on several important factors that you must compare and take into consideration before making a decision.
Best GIC Rates Canada
Are you looking for a low-risk investment in Canada? Guaranteed Investment Certificate or GIC is a Canadian investment offering a guaranteed return rate for a predetermined period. This is a common investment scheme offered by banks or trust companies. But what’s different about GICs is its low-risk profile but with a guaranteed return that is lesser as compared to other investment schemes like stocks, bonds, and mutual funds.
Best GIC Rates in Canada
If you’re searching for the best GIC rates in Canada, compare GIC rates from credit unions to GIC rates from big banks. Even if you have been banking with your current financial institution for a considerable period of time, you should try to shop around especially when there are many high-interest rate GICs available. Take note that interest rates offered by banks may lag behind credit union banks and online banks.
Sometimes it doesn’t always pay to be loyal to your bank, as you may not be offered the best GIC rates. It would be wise to shop around especially when there are so many options available.
Consider for example Oaken Financial 90 Day GIC pays you 1.80 percent interest rate and compare that with TD Bank 90 Day GIC that only yields 0.25 percent for a 3-month period. Compare all GICs to find the best GIC Rates in Canada.
Compare High-Interest GIC Rates in Canada
The interest rate for GICs varies according to the amount of money you invest and the length of term. The amount may start as low as $100 to as high as $100,000
Difference between Registered GIC & Non-Registered GIC
When a GIC is ‘registered’, it simply means that the lender and your investment is registered with the government for purposes of taxation. There are three types of registered GICs:
- Tax-free savings account or TSFA
• Registered Retirement savings plan or RRSP
• Registered Retirement income plan or RRIF
Although non-registered GICs are still taxable, only the capital gains earned within the account usually at 50 percent of your highest marginal tax rate. Non-registered GICs are two types:
Redeemable vs. non-redeemable GIC
A non-redeemable GIC refers to an investment within a fixed period. This means that you won’t be able to withdraw the funds you have deposited or invested until the term has matured. The opposite would apply with a redeemable GIC where you are allowed to withdraw funds before the term ends
Ultimately, your choice will depend on your preference and the benefits that you can avail of. Redeemable GICs offer the following:
- Guarantee – Your principal investment is assured all the time
- Redemption rates – There are several redemption rates that you can choose from.
- Your money can be withdrawn any time
Although the return rate for non-redeemable GICs is higher, you must remember that you don’t have access to your investment before it matures. So make sure you have extra funds for future use.
Pros & Cons of investing in a GIC
Regardless of whether you invest in redeemable or non-redeemable investment plans, registered or non-registered, the returns for GICs are guaranteed. You also have the guarantee that the principal will be returned to you. The terms for both types of GICs are varied and renewable, but non-redeemable GIC offers higher returns. But if you choose to redeem a redeemable GIC before the date of maturity, the interest rate would be much lower than what has been offered originally.