Best GIC Rates in Canada – January 2025

Is now the time to lock in Canada’s Best GIC Rates? With the Bank of Canada suggesting a potential rate cuts in 2025, and with Trump’s tariffs knocking on the door, the best GIC rates in Canada may be hovering at their peak -which could mean now’s a great time to snag something above 3.3%. A Guaranteed Investment Certificate (GIC) is essentially the Canadian counterpart to an American CD (Certificate of Deposit), offering a stable way to grow your money.

GICs shine when you’re aiming to save for shorter-term goals. Below, you’ll find our always-updated rundown of top Canadian GIC rates for 1-, 3-, and 5-year terms (although other durations are out there too). These are considered a safe bet, not only because Canadian banks are famously robust, but also because coverage is automatically provided by the Canadian Deposit Insurance Corporation (CDIC).

We should note that we have consistently recommended EQ Bank over the years not only because of their elite GIC rates, but also because of their $0 fee accounts, excellent EQ Bank Card, best-in-Canada high interest savings account, and their award-winning online platform. See our EQ Bank Review for more details.

Best 2025 Canadian Bank Offer:
3.50% Everyday Interest Rate + 2% Cashback

Open an account with EQ Bank & get the best interest rates in Canada - 1.75% + 1.75% interest rate if you direct deposit your pay and 2% cashback.

The best daily interest rates in Canada* and even better rates for GICs - 3.70% guaranteed in your registered account. Get it by clicking the button below:

Visit EQ Bank & Get 2% Cashback

* Rates are subject to change ** Applies to both New and Existing clients who open a new account. ***EQ Bank Review: more details

Best Canadian GIC Rates Compared

January 2025’s top Canadian GIC rates are listed below for 1-year, 3-year, and 5-year terms. These are the institutions MDJ’s staff personally tried and deem safe and offer an overall high quality product.

I also provided a more detailed comparison of all the major GIC options further down the page since there are some smaller banks and credit unions that offer slightly better rates. As always, we recommend checking the full terms and conditions before signing up with anyone, most importantly what amounts are CIDC insured.

Best 1-Year GIC Rates in Canada

Best 3-Year GIC Rates Compared

Best 5-Year GIC Rates

What is a GIC?

The term GIC is short for Guaranteed Investment Certificate.  

As an investment, it belongs in the same fixed-income family as bonds.

GICs are very safe investments as they are basically short-term loans to banks, and are insured in Canada by the Canadian Deposit Insurance Corporation (CDIC) if you use a major Canadian Bank such as EQ Bank. Even if one of Canada’s banks went bankrupt (incredibly unlikely) the CDIC would step in and pay you your principal back (up to $100,000 per account).

When looking at fixed income investments, the idea is that you are loaning an entity money, and in return, that entity is going to give you that money (called “the principle”) back, plus interest payments periodically. 

So if you buy a government bond, you’re essentially loaning money to the government.  When you buy a corporate bond (more risky) you’re loaning money to that company.

And when you buy a GIC, you are making an agreement with a bank to pay you your money back a number of years from now, plus give you a specific interest.

If you were to invest in a 5-year GIC with $100 of your hard-earned cash, you’d get paid about $3.40 each year for the next five years, and then at the end of the 5-year period you’d get your original $100 back as well.

Outlook for 2025 Canadian GIC Rates

Trying to figure out where GIC interest rates are headed in 2025 is a tough one. In the latter half of 2024 we saw inflation in the USA stay higher than many had predicted. That led to pressure on interest rates staying higher than we would’ve thought for a longer time than anticipated.

Long story short, interest rates in both Canada and the USA are going to depend on President Donald Trump’s decisions in 2025. Those interest rate decisions will directly determine Canadian GIC rates.

If Trump crashes the Canadian economy with tariffs, we might see the Bank of Canada cut interest rates in a hurry. On the other hand, if he scales back his tariff plans on Canada’s companies – but carries through with many of his other tariff plans – (plus eliminates millions of illegally-immigrated American workers from the labour pool) then it’s likely we’ll see inflation skyrocket in the USA.

That inflation is going to put a ton of pressure on the US Federal Reserve to raise interest rates again – and consequently the Bank of Canada will feel increased pressure as well. They don’t want to see our Dollar devalued to nothing after all (not to mention a big difference in rates will lead to a growing trade surplus – guaranteed to get Trump’s negative attention).

Currently, a one-year GIC might make the most sense as it reduced the risk of taking out a 5-yr GIC only to watch rates go up. Taking advantage of EQ banks special 2% match on RRSPs is a no brainer, as it automatically gives you a 2% return – plus you get to now earn interest on EQ’s money that they just handed to you!

Best 2025 Canadian Bank Offer:
3.50% Everyday Interest Rate + 2% Cashback

Open an account with EQ Bank & get the best interest rates in Canada - 1.75% + 1.75% interest rate if you direct deposit your pay and 2% cashback.

The best daily interest rates in Canada* and even better rates for GICs - 3.70% guaranteed in your registered account. Get it by clicking the button below:

Visit EQ Bank & Get 2% Cashback

* Rates are subject to change ** Applies to both New and Existing clients who open a new account. ***EQ Bank Review: more details

Types of GICs in Canada

You can put GICs in pretty much any bank account or investment account in Canada (including RRSPs, TFSAs, RESPs, or basic bank accounts).  The main types of GICs in Canada include:

The Classic Non-Redeemable GIC: The vast majority of GICs that Canadians invest in are non-redeemable GICs.  All that phrase means is you can’t cash the FIC out early and redeem your cash.  You are locked in to getting your specific interest rate payment annually, and then your money back at the end of that period.

This type of GIC is also commonly referred to as a “fixed GIC”.

A Cashable Redeemable GIC: The much less common cashable GIC is kind of the exact opposite of the non-redeemable GIC.  It allows folks the ability to withdraw the initial money they put in (the principle) before the term is up.  In order to get this neat little feature though, you are going to get paid a much lower interest rate than you would with the Classic GIC option.  

Honestly, rather than go through the trouble of a cashable GIC, I’d just toss my money in one of our best high-interest savings accounts.

Laddered GIC: The phrase “laddered GIC” is just something that bankers like to say to impress people.  All it really means is that a person can set up a series of non-redeemable GICs so that they will receive money each year.

For example, If I have $100,000, I might put $20,000 each in a 1-year GIC, 2-year GIC, 3-year, GIC, 4-year GIC, and 5-year GIC.  In this way, I know that I will have $20,000 (plus interest) coming to me each year.

Market Linked GIC: This type of GIC is a niche produce that is linked to the performance of an underlying asset.  It’s kind of like using the GIC structure to make a bet on something else (usually the stock market).  Most people can safely ignore these types of GICs.

Variable Rate GICs: Again, another niche type of GIC that most people can probably avoid.  This GIC’s return will go up and down with interest.  It’s like the reverse of a variable rate mortgage.

Best GIC Rates For Registered RRSP and TFSAs vs. Non Registered GICs

The GIC is a very flexible investment product.  You can invest in a GIC outside of any type of special registered account, and you can also place it within an RRSP, TFSA, RESP or other registered accounts.

Our preferred GIC provider, EQ Bank, even goes so far as to incentivize you to use their GIC inside your RRSP and TFSA by offering special GIC rates on those products:

Obviously the big bonus to putting GICs into a registered account (versus a GIC in a non-registered account) is that the interest gained on the investment in a TFSA or RRSP will not be taxed. 

This is especially important for GIC income because the interest income that they produce is taxed at 100% of your normal tax rate (it’s as if you earned the money a job) whereas dividends and capital gains are taxed at much lower rates.

Are GICs Insured and Safe Investments?

GICs are safe investments in two different ways.

1) GICs are relatively safe in terms of investment risk. 

As a fixed income investment, GICs are considered substantially safer than stocks. If a company were to go bankrupt (again, we’re talking super safe Canadian banks here) GIC holders would be some of the first ones paid out. 

People who owned shares of a bank on the other hand, would be the last ones to get paid anything. (This is why equities like shares generally have higher long-term returns than fixed income investments.)

2) GICs are safe due to CDIC insurance.

The Canadian Deposit Insurance Corporation (CDIC) is an entity that the Canadian government set up to protect investors and to give people confidence when it comes to investing money in Canada. Canadian banks (notably not credit unions such as Oaken or Hubert) have their GICs fully insured by this Canadian government company – up to $100,000 per account.

So if you have $100,000 in GICs in your RRSP, $100,000 in GICs in your TFSA, and $100,000 in GICs in basic non-registered bank account – then you are fully insured on $300,000. If you do the same thing again at a second bank, you have $600,000 covered.  

If your partner uses the same strategy – you now have over a million in fully insured GICs – and frankly you probably have too much money in fixed income investments!

So even if a bank were to go completely bankrupt and not be able to pay you your money, this branch of the Canadian government would step in to cover your losses – up to $100,000 per account.

Canadian Credit Unions have a similar government-ran insurance, but they are governed by provinces – not the federal government. That means that GICs from credit unions are considered almost as safe as those from Canadian Banks (such as EQ Bank and Tangerine) – but since the provincial deposit guarantee corporations aren’t as big as the CDIC (which is ran by a whole country instead of a province).

How to Open a GIC Account and Buy a GIC

There are a wide variety of ways to open a GIC account in Canada. You can buy a GIC within any registered or non-registered account, so basically anywhere that allows you to do that will allow you to buy a GIC.

As you can tell from our Canadian GIC Comparison chart at the top of this article, we’re fans of online banks and credit unions. They always have the best GIC rates in Canada because they have no bricks-and-mortar costs to subsidize with fees on their products.  

That said, you can buy a GIC using any of Canada’s chartered banks – from the biggest company in Canada (RBC) to relatively small banks and trust companies.  As mentioned above, you can use credit unions or caisses populaires to buy GICs – but remember they are covered by provincial governance, not by the CDIC.

Canada’s online discount brokerages will also allow you to purchase GICs, but the variety you’ll have to choose from depends on which online broker you use.

For the most part it’s quite easy to open an account and buy a GIC at any of these institutions since it’s such a well known product.

GICs vs Bonds and Other Fixed Income

Of course GICs aren’t alone when it comes to investment types that fit under the category of “fixed income”.  You can check out our in-depth article on bond ETFs vs GICs vs high interest savings accounts for a close comparison of fixed income products.

Generally speaking bonds, GICs, and high interest savings accounts have different levels of liquidity, but they all fit under the same overall big picture. They are very safe investments with correspondingly low levels of anticipated returns compared to equities.

For 2025 I think the mid-term GICs specifically have raced out the best value when compared to the current rates offered on federal and provincial bonds, as well as high interest savings accounts. You can also read our article comparing the best short term investments in Canada for more information.  

What is the Difference Between a GIC and a Term Deposit?

Due to the fact that many countries use the phrase “term deposit” to mean lending your money to a bank for a specific period of time, many newcomers to Canada often ask what the difference is between a term deposit and a GIC (Guaranteed Investment Certificate).

The truth is that in practical terms there is no difference between a GIC and a term deposit. Both terms refer to a person depositing money at a financial institution (usually a bank) for a specific period of time, and gaining a specified amount of interest on their money during that period of time.

Functionally, the important thing to understand is that both GICs and term deposits are short-term investments that would be covered by CDIC insurance at most banks (and provincial equivalents to the CDIC at credit unions).  

Several years ago, Canadians used the phrase “term deposit” to talk about a shorter-term product that saw you lend your money to a bank for 3-9 months. GICs were generally for one year or more. Over time, banks started to offer 3-, 6-, and 9-month GICs, so that now, the two terms refer to nearly identical products.

I periodically will see offers for 1-month or 2-month term deposits in Canada, whereas I never see 1-month GICs featured. That said, it’s almost an irrelevant difference given the proliferation of high interest savings accounts and cash ETFs.

At the end of the day the difference between GICs and term deposits within a Canadian context is basically one of semantics. They refer to the same low-risk investment that sees an investor lend their money to a bank for a specific period of time. The investments are fixed-income (as opposed to equities) and generally track what the Canadian federal government does with interest rates, and are fairly similar to bonds as well.

Canadian GICs FAQ

Compare Other Top Canadian GIC Rates

Less established financial institutions can be a good choice especially for lower amounts of money, where the risk is lower and you really want to maximize returns. If that’s how you feel, here’s a quick comparison of the best GICs based on the data below (as of January 2025):

As you can see, while Canadian GIC rates have gone up substantially at every bank in Canada this year, the largest institutions generally have some of the lowest GIC rates available. Out of the Big 6 Banks it appears that BMO, TD, ScotiaBank National Bank, RBC, and CIBC all have much lower GICs available.

Are Canadian GICs Worth It?

Comparison shopping for the best Canadian GIC rates guarantees that you’re going to get the maximum return on your stable investments. They remain an excellent option for folks looking to save for short- and medium-term goals such as a downpayment on a house (hopefully within their FHSA).

While we watched GIC rates tick down in 2024, we could see them dip even lower in 2025 – so I wouldn’t delay much longer. That said, we’re still enjoying much higher rates than we did in much of the 2010s and the “Covid Era” of low interest rates.

The main thing to understand about GICs is that they are a simple set-it-and-forget-it way to grow your money. They’re not going to win you any investing competitions any time soon, but you’re not going to see 40% of your investment portfolio go up in smoke either!

Whether buying a new vehicle, completing that home renovation you’ve been planning, or saving up for your next adventure, GICs are a boringly-solid way to get to where you want to be. Make your savings work for you by comparing the best GIC rates Canada has available today!