Best GIC Rates in Canada (2026)

GICs (Guaranteed Investment Certificates) offer a guaranteed return with zero risk to your principal. Rates vary by term and provider and change frequently — this article explains how to compare them rather than quoting a fixed rate table, since GIC rates were not independently confirmed for every provider listed below as of this update.

Quick answer: GIC rates vary by term and provider and change often. Online banks and credit unions have historically offered higher GIC rates than the Big 5 banks. Hold GICs in a TFSA to avoid paying tax on interest. For money you might need sooner, a high-interest savings account is more flexible. Always confirm the current rate directly at your chosen provider before purchasing a GIC.

How to Compare GIC Rates by Term

Online banks and credit unions have historically offered higher GIC rates than the Big 5 banks — often by a meaningful margin. The tradeoff is minimal: these providers are typically CDIC-insured (up to $100,000 per category), so your money is just as protected as it would be at a Big 5 bank. Because rates change frequently and were not independently confirmed for every provider as of this update, compare current rates directly at each provider’s website rather than relying on a fixed table:

Rates were not independently confirmed for every provider in this table as of September 2026 — always verify directly with the provider before purchasing. Non-redeemable (locked-in) GICs generally pay more than redeemable GICs.

GIC vs HISA: When to Use Each

The choice between a GIC and a high-interest savings account comes down to whether you’re certain you won’t need the money for the full term. GICs typically pay a premium for that certainty over the best HISA rates — confirm current rates at both before deciding. If there’s any chance you’ll need the funds, stick with a HISA to avoid breaking a locked GIC.

How Much Interest a GIC Earns (Illustrative)

GIC returns are modest in absolute terms but guaranteed — which is the entire point. The table below is illustrative, using representative rates — substitute your provider’s current confirmed rate to calculate your actual expected return.

Illustrative figures only — confirm the current rate at your chosen provider before purchasing a GIC.

GIC Laddering Strategy

A GIC ladder solves the main drawback of GICs — illiquidity — by spreading your money across staggered terms. After the initial setup, one GIC matures every year, giving you regular access to a portion of your funds while earning the rates available on longer terms (when the yield curve is upward-sloping — confirm the current curve shape at your provider).

Instead of locking all money into one GIC, spread it across multiple terms:

Benefits: You get exposure to longer-term rates, but a portion of your money becomes available every year. See our full GIC laddering guide for a detailed walkthrough.

Types of GICs

Most Canadians should stick with non-redeemable GICs held inside a TFSA — they typically offer the highest rates and the interest is completely tax-free. Market-linked GICs sound appealing but have historically tended to underperform both regular GICs and index funds over time, making them a less common choice for most investors.

GIC vs Index ETF: Long-Term Comparison

GICs are designed for short-term safety, not long-term growth. Over 10+ years, a diversified equity portfolio has historically outperformed GICs, though with meaningfully more volatility and no guarantee of positive returns. The table below is illustrative and uses assumed rates of return — actual results vary and are not guaranteed, and past performance does not predict future results.

This table uses assumed rates for illustration only and is not a prediction of future returns. Equity and bond ETF investments carry investment risk, including possible loss of principal — unlike a GIC, they are not guaranteed or CDIC-insured. Confirm current GIC rates directly with your provider, and consider your own risk tolerance and timeline before investing in market-linked products.

Bottom Line

GICs are well suited for money you won’t need for 1–5 years and want guaranteed returns. A GIC ladder across multiple terms can offer a balance of rate exposure and flexibility. For money you might need sooner, a HISA is more flexible. For money you won’t need for 5+ years, index ETFs have historically tended to outperform GICs over long periods, though with investment risk that a GIC does not carry.

For related guides, see best savings accounts and how to start investing in Canada.

See all Canadian banking guides at Canadian Banking Guides.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.