What is a GIC in Canada?

A Guaranteed Investment Certificate (GIC) is a Canadian investment that earns a fixed interest rate over a set term, typically 30 days to 5 years. Your principal is guaranteed and GICs held at CDIC-member institutions are insured up to $100,000 per depositor category.

Are GIC rates higher at online banks?

Yes. Online banks and credit unions such as EQ Bank and Oaken Financial consistently offer GIC rates 0.5% to 1.5% higher than the Big Six banks. This is because online banks have lower overhead costs and compete aggressively on deposit rates.

Are GICs CDIC insured?

GICs with terms of up to 5 years at CDIC-member institutions are insured up to $100,000 per depositor per category (e.g., registered vs. non-registered). EQ Bank and Oaken Financial are both CDIC members.

What is the difference between a cashable and non-redeemable GIC?

A cashable (redeemable) GIC lets you withdraw funds before maturity, usually after 30–90 days, though the rate is typically lower. A non-redeemable GIC locks your money for the full term but offers a higher guaranteed rate.

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Best GIC Rates in Canada — 2026

Compare GIC rates at Canada's top banks and online lenders. Rates updated periodically — verify directly with each institution before investing.

Institution	Type	Rate	Min. Deposit	CDIC Insured	Redeemable

Rates are approximate and sourced from publicly available institution websites. They change frequently — always confirm before investing. Last reviewed: June 2026.

GIC Return Calculator

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Interest on non-registered GICs is taxed as ordinary income at your marginal rate.

GIC FAQs

A Guaranteed Investment Certificate (GIC) is a low-risk Canadian investment where you lend money to a bank for a fixed term at a guaranteed rate. Your principal is protected and returns are predictable, making GICs popular for emergency funds, RRSPs, and TFSAs.

Online banks (EQ Bank, Oaken Financial, Achieva) have lower operating costs than branch-based banks. They pass those savings to depositors as higher rates, and they need to attract deposits without a physical branch network.

Yes — holding GICs inside a TFSA or RRSP shelters the interest from tax. GIC interest is taxed as ordinary income (not capital gains), so the tax advantage is significant at higher marginal rates. A 4% GIC in a TFSA effectively yields 4%; outside a registered account it might yield only 2.3% after tax for someone in the 43% bracket.

Best GIC Rates in Canada — 2026

GIC Return Calculator

Projected Returns

GIC FAQs

What is a GIC?

Why are online bank GIC rates higher?

Should I hold GICs inside a TFSA or RRSP?