Check out the details about Best GIC Rates in Canada – Who has the Best GIC Rates in Canada As of Today? from this article. Different details about Best GIC Rates in Canada – Who has the Best GIC Rates in Canada As of Today? and other relevant information are available in this article.
Best GIC Rates in Canada
GIC offers a good option for stable, low-risk, and guaranteed investment. Many people prefer to invest in GIC Investment because of its low risk. However, lower risk also lowers the potential for growth, as the interest rates are significantly lower than other investment options.
Best GIC Rates in Canada are offered by a couple of financial institutions, including RBC ESG Market-Linked GIC, CIBC Index Growth GIC, EQ Bank, Tangerine, and many others. Some financial institutions even permit their customers to take out their funds before maturity by charging penalties.
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GIC Rate in Canada
GIC, or a Guaranteed Investment Certificate, is issued by banks and trust companies. GIC offers a guaranteed rate of return over a fixed period of time. Although it has a guaranteed rate of return, the return is less in comparison to stocks, mutual funds, bonds, or other investments. The rate at which the investments are returned varies on a different number of factors.
These factors may include term length, bank-specified rates, and other crucial aspects. Each bank and trust company that offers GIC can have a different rate than others. Depending on the investor’s needs, they also offer a wide range of term lengths, such as 1 year, 5 years, 2 years, 18 months, etc. Each of these term lengths can also have a different GIC Rate despite being offered by the same bank/trust company.
Benefits of GIC
There are many benefits of GIC investments. These include –
- guaranteed rate of return
- reduces the overall risk
- diversifies the portfolio
- offers a steady income stream, even during a recession
- offers various term lengths based on requirements
- available for both short-term and long-term investments
- offers GIC laddering
Additionally, many banks and other financial institutions also offer different types of GICs, including –
- Fixed-Rate GICs
- Escalator GICs
- Market-Linked GICs
- Variable Rate GICs
Investors can also estimate how much they can receive through a particular GIC investment by considering – the investment amount, interest rate, and GIC term. Increases in interest rates in long-term GICs can make a noteworthy difference in the interest amount that the customers can earn.
Who has the Best GIC Rates in Canada?
The most common way to find the best GIC Rate in Canada is to compare the rates and investment amounts of several banks and financial institutions. Also, some institutions may or may not offer withdrawal options before maturity. Hence, in case someone thinks that they may have to withdraw their funds before the end of their term period, they should consider checking for the withdrawal options and their penalties.
Many people also consider spreading or dividing their funds and investing them into several GICs instead of investing all the money into a single GIC. They can choose different terms in different GICs that will allow them to receive increased funds at several instances of time. Not only can this increase the total amount, but it can also lessen the overall risk.
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Some of the Best GIC Rates in Canada As of Today include –
- Home Trust Company (1 Year)
- Rate (Annual Compound): 5.65%
- Rate (Semi-Annual): 5.60%
- Rate (Monthly): 5.55%
- Minimum Deposit: $1,000
- Home Trust Company (3 Year)
- Rate (Annual Compound): 5.45%
- Rate (Semi-Annual): 5.40%
- Rate (Monthly): 5.35%
- Minimum Deposit: $1,000
- Tangerine (1 Year)
- Rate: 5.70%
- Tangerine (1.5 Year)
- Rate: 5.75%
- Tangerine (5 Year)
- Rate: 3.85%
- Oaken Financial (1 Year)
- Rate (Annual): 5.75%
- Rate (Semi-Annual): 5.70%
- Rate (Monthly): 5.65%
- Minimum Deposit: $1,000
- WealthONE Bank of Canada (1 Year)
- Rate: 5.98%
- Minimum Deposit: $1,000
- Type: non-redeemable
- WealthONE Bank of Canada (3 Year)
- Rate: 5.48%
- Minimum Deposit: $1,000
- EQ Bank (1 Year)
- Rate (Non-registered): 5.65%
- EQ Bank (5 Year)
- Rate (Registered): 5.15%
- Peoples Bank (1 Year)
- Rate (Long Term GIC): 5.80%
- Peoples Bank (5 Year)
- Rate (Long Term GIC): 4.50%
- Motive Financial (1 Year)
- Type: Non-registered
- Rate: 5.750%
- Motive Financial (3 Year)
- Type: Non-registered
- Rate: 5.480%
- Haventree Bank (3 Year)
- Type: Long-term GIC
- Rate (Maturity): 5.36%
- Rate (Annual): 5.36%
- Rate (Semi‐Annual): 5.26%
- Rate (Monthly): 5.16%
- Minimum Deposit: $5,000
- Haventree Bank (5 Year)
- Rate (Maturity): 5.01%
- Rate (Annual): 5.01%
- Rate (Semi‐Annual): 4.91%
- Rate (Monthly): 4.81%
- Minimum Deposit: $5,000
- LBC Digital (3 Year)
- Type: non-registered and on-redeemable
- Rate: 5.35%
- Minimum Deposit: $100
- LBC Digital (5 Year)
- Rate: 5.30%
- Minimum Deposit: $100
- Laurentian Bank (3 Year)
- Rate: 5.35%
- Minimum Deposit: $500
- Laurentian Bank (5 Year)
- Rate: 5.30%
- Minimum Deposit: $500
Please note that the GIC Rate offered by these banks and financial institutions can change in the future. Hence, before making investments, investors should re-check the current rates and other essential aspects of the GICs.
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