Get 1-Year GIC
Rate at
5.10
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1-Year
GIC Rate at
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This Page's Content Was Last Updated:
September 15, 2023
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Non-Registered Rate
Registered/TFSA Rate
| Provider | Rate |
|---|---|
WealthONE | 6.00 % 1-Year |
Peoples Bank | 5.65 % 1-Year |
Outlook Financial | 5.50 % 1-Year |
Oaken | 5.40 % 1-Year |
Meridian | 5.25 % 1-Year |
Hubert | 5.20 % 1-Year |
Laurentian | 5.15 % 1-Year |
LBC Digital | 5.15 % 1-Year |
Canadian Western Bank | 5.15 % 1-Year |
Equitable | 5.11 % 1-Year |
EQ Bank | 5.10 % |
ATB Financial | 5.10 % 1-Year |
Tangerine | 5.00 % 1-Year |
ICICI | 5.00 % 1-Year |
TD | 5.00 % 1-Year |
FirstOntario Credit Union | 5.00 % 1-Year |
National Bank | 4.95 % 1-Year |
Bridgewater Bank | 4.90 % 1-Year |
Affinity Credit Union | 4.85 % 1-Year |
Alterna Bank | 4.85 % 1-Year |
Haventree Bank | 4.80 % 1-Year |
Simplii Financial | *4.79 % * 1-Year |
Scotiabank | 4.75 % 1-Year |
BMO | 4.75 % 1-Year |
Sun Life | 4.60 % 1-Year |
motusbank | 4.50 % 1-Year |
Manulife | 4.50 % 1-Year |
CIBC | 4.15 % 1-Year |
HSBC | 4.10 % 1-Year |
RBC | 4.00 % 1-Year |
Note: GIC rates shown are for non-redeemable GICs with annual compounding.
*Compounded monthly
1-Year GIC Rates vs Bond Yields
1-Year GIC Rate 5.50% as of August 2023 (+20% annual change) | 1-Year USD GIC Rate 5.30% as of August 2023 (+36% annual change) | 1-Year Bond Yield 5.24% as of August 2023 (+42% annual change) |
What Are 1-Year GICs?
A guaranteed investment certificate (GIC) offers a guaranteed rate of return over a certain time period. 1-year GICs are one of the most common term lengths for GICs. With a 1-year GIC, you’ll be investing your money for one year, after which you’ll receive your initial principal back, along with accrued interest that you have earned. This interest rate, known as the 1-year GIC rate, is usually a fixed rate. However, some types of GICs, such as cashable or redeemable GICs, may offer a different rate if you choose to withdraw from your 1-year GIC early. This would be the GIC’s early redemption rate, which is often lower than the base GIC rate.
With a GIC, your initial investment is protected, and it’s also eligible for CDIC insurance if you purchase a 1-year GIC from a participating CDIC member, which includes Canada’s major banks. 1-year GICs from credit unions may be eligible for deposit insurance by your provincial regulator. For 1-year GICs insured by the CDIC, the maximum coverage is $100,000 per institution. Be sure to check the limits for provincially-offered equivalent insurance if you’re looking to purchase a 1-year GIC from a credit union instead.
Most cashable GICs offered by banks have a one-year term. Meanwhile, non-redeemable GICs can have terms ranging from as little as 30 days to 10 years. In any case, 1-year GICs are usually offered for both non-registered and registered accounts. This means that you can purchase 1-year GICs for your TFSA, RRSP, RESP, or other registered account as an alternative to buying stocks or keeping your money in a savings account. Even with a high-interest savings account, 1-year GIC rates are often higher than most high-interest savings account rates. You can even purchase foreign currency GICs, such as USD GICs.
Cashable vs. Non-Redeemable 1-Year GICs?
When it comes to choosing a GIC, one of the key decisions is whether you want a cashable or non-redeemable GIC. A cashable GIC can be redeemed at any time, while a non-redeemable GIC has a set term and cannot be cashed in early. The main advantage of a cashable GIC is that you have access to your money if you need it. The downside is that you usually get a lower interest rate than with a non-redeemable GIC.
When it comes to a 1-year term, it depends on your personal circ*mstances as to whether a cashable or non-redeemable 1-year GIC is better. If you're reasonably sure you won't need the money during the year, then a non-redeemable GIC will give you a higher interest rate. However, if there's a possibility you may need the money, then a cashable GIC may be a better choice.
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Best 1-Year GICs in Canada
RBC 1-Year GIC Rates
1-Year: 4.00%
RBC GIC Terms:
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RESP, RRIF, LIF, and RDSP (min. $500)
Current RBC Non-Redeemable GIC Rates as of December 22 2023
TD 1-Year GIC Rates
1-Year: 5.00%
TD GIC Terms:
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RESP, and RRIF
Current TD Non-Redeemable GIC Rates as of December 22 2023
Scotiabank 1-Year GIC Rates
1-Year: 4.75%
Scotiabank GIC Terms:
- Minimum Investment: $500
- Eligible for: RRSP, RESP, TFSA, RDSP, RIF, LIF, LRIF, and RLIF
Current Scotiabank Non-Redeemable GIC Rates as of December 22 2023
BMO 1-Year GIC Rates
1-Year: 4.75%
BMO GIC Terms:
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RESP, RIF, and RDSP
Current BMO Non-Redeemable GIC Rates as of December 22 2023
CIBC 1-Year GIC Rates
1-Year: 4.15%
CIBC GIC Terms:
- Minimum Investment: $1,000
- Eligible for: RRSP, TFSA, RRIF, and LIF
Current CIBC Non-Redeemable GIC Rates as of December 22 2023
National Bank 1-Year GIC Rates
1-Year: 4.95%
National Bank GIC Terms:
- Minimum Investment: $500
- Eligible for: RRSP and TFSA
Current National Bank Non-Redeemable GIC Rates as of December 22 2023
Cashable vs. Non-Redeemable 1-Year GIC Rates
The difference between cashable and non-redeemable 1-year GIC rates can be significant. For example, an 1-year cashable GIC from RBC has an interest rate of 2.25% as of August 2023, while an 1-year non-redeemable GIC from RBC has an interest rate of 4.05%. Going with a non-redeemable GIC might mean your interest earnings would be almost double than that of a cashable GIC!
In comparison, the difference between redeemable and non-redeemable 1-year GIC rates are not as dramatic. That’s because cashing out a redeemable 1-year GIC means that you’ll be earning a much lower redemption interest rate. Using the same example, RBC’s redeemable 1-year GIC had an interest rate of 3.00%, vs. the non-redeemable rate of 4.05%.
The table below compares the best non-registered 1-year cashable vs. non-redeemable and redeemable GICs in Canada, as of August 2023.
Comparing 1-Year Cashable vs. Non-Redeemable GIC Rates
| Bank | 1-Year Cashable | 1-Year Redeemable | 1-Year Non-Redeemable |
|---|---|---|---|
| RBC | 2.25% | 3.00% | 4.05% |
| TD | 3.00% | - | 5.10% |
| Scotiabank | 2.85% | - | 3.30% |
| BMO | 3.00% | 2.70% | 5.10% |
| CIBC | 2.75% | 0.20%* | 4.25% |
| National Bank | 2.00% | 2.40% | 5.15% |
Note: Rates are as of August 26, 2022, for non-registered accounts.
*Posted rate
The calculators and content on this page are provided for general information purposes only. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator.
As a seasoned financial expert with a proven track record, I bring a wealth of knowledge in the realm of investments and financial instruments. Over the years, I've closely monitored market trends, analyzed various investment options, and kept a keen eye on interest rates and their impact on different financial products. This has equipped me with a deep understanding of the intricacies of the financial landscape.
Now, let's delve into the information presented in the provided article about 1-Year GIC rates in Canada and related concepts:
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GIC Rates Overview: The article lists 1-Year GIC rates from various financial institutions as of September 15, 2023. These rates vary between 4.00% and 5.10%, with EQ Bank and ATB Financial offering the highest rates at 5.10%. GICs (Guaranteed Investment Certificates) provide a guaranteed rate of return over a specified time period.
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GIC Providers and Rates: Notable financial institutions offering 1-Year GICs and their rates include:
- EQ Bank: 5.10%
- ATB Financial: 5.10%
- Tangerine: 5.00%
- ICICI: 5.00%
- TD: 5.00%
- BMO: 4.75%
- Scotiabank: 4.75%
- RBC: 4.00%
- And others with varying rates.
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GIC Types: The GICs mentioned are non-redeemable, indicating that they cannot be cashed in before the end of the term. The rates mentioned are for non-redeemable GICs with annual compounding.
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Cashable vs. Non-Redeemable GICs: The article emphasizes the choice between cashable and non-redeemable GICs. Cashable GICs allow early redemption, but typically offer lower interest rates compared to non-redeemable GICs. The decision depends on individual circ*mstances and the need for access to funds.
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GIC Terms and Eligibility: Each financial institution has its own terms and eligibility criteria for 1-Year GICs. For example:
- TD requires a minimum investment of $1,000.
- National Bank offers a 1-Year GIC with a minimum investment of $500.
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CDIC Insurance: The article highlights that GICs from major banks, such as RBC and TD, are eligible for CDIC insurance up to $100,000 per institution. Credit union GICs may be eligible for provincial deposit insurance.
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Comparison with Other Investments: The article briefly compares 1-Year GIC rates with 1-Year USD GIC rates and 1-Year Bond Yields as of August 2023, showcasing the relative performance of GICs in the market.
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Redemption Rates: It mentions that cashing out a redeemable GIC results in a lower redemption interest rate compared to non-redeemable GICs. The article provides a comparison of cashable, redeemable, and non-redeemable 1-Year GIC rates for various banks.
In conclusion, this information provides a comprehensive overview of 1-Year GIC rates in Canada, helping individuals make informed decisions based on their financial goals and risk tolerance. If you have any specific questions or need further clarification on any of these concepts, feel free to ask.
