GICs (Guaranteed Investment Certificates) are one of the safest places to put your money in Canada. Your principal is guaranteed, your return is locked in, and they’re covered by CDIC insurance up to $100,000. In 2026, with rates still at attractive levels, GICs deserve serious consideration for short-term savings, emergency funds, and the conservative portion of your portfolio.
How GICs Work
- You deposit money with a bank or credit union for a fixed term
- The institution pays you a guaranteed interest rate
- At maturity, you receive your principal plus interest
- Your money is typically locked in until the term ends
| Feature | Details |
|---|---|
| Minimum deposit | $100–$1,000 (varies by institution) |
| Terms available | 30 days to 10 years |
| Interest paid | At maturity, annually, or monthly (varies) |
| Principal guarantee | 100% |
| CDIC insurance | Up to $100,000 per institution |
| Early withdrawal | Usually not allowed (except cashable GICs) |
Types of GICs
Non-Redeemable (Standard)
The most common type. Highest rates but your money is locked in until maturity. You cannot access it early.
Best for: Money you won’t need until a known future date.
Cashable / Redeemable
Can be cashed in early, usually after 30–90 days. Rates are lower than non-redeemable GICs — you pay for the flexibility.
Best for: Emergency funds, money you might need before the term ends.
Market-Linked
Returns are tied to stock market performance. Your principal is guaranteed (you won’t lose money), but your return could be 0% if markets perform poorly. Upside is typically capped.
Best for: Investors who want market exposure without risk of losing principal. Generally not recommended — a simple GIC + ETF combination is more transparent.
Full comparison: Cashable vs Non-Redeemable GIC
Deep dive: Market-Linked GICs — Are They Worth It?
Related: Term Deposit vs GIC
Best GIC Rates in Canada
GIC rates vary significantly between institutions. Online banks (EQ Bank, Oaken, Peoples Trust) consistently offer the best rates because they have lower overhead than big banks.
| Term | Big Bank Range | Online Bank Range |
|---|---|---|
| 1-year | 3.0–3.5% | 3.5–4.5% |
| 2-year | 3.0–3.5% | 3.5–4.0% |
| 3-year | 3.0–3.3% | 3.3–4.0% |
| 5-year | 3.0–3.3% | 3.2–3.8% |
Rates change frequently. See our regularly updated comparison: Best GIC Rates Canada
GIC Ladder Strategy
A GIC ladder staggers your money across multiple terms so you always have a portion maturing:
| Year | Amount | Term | Matures |
|---|---|---|---|
| Now | $10,000 | 1-year | Year 1 |
| Now | $10,000 | 2-year | Year 2 |
| Now | $10,000 | 3-year | Year 3 |
| Now | $10,000 | 4-year | Year 4 |
| Now | $10,000 | 5-year | Year 5 |
Each year when a GIC matures, you reinvest it in a new 5-year GIC at the current rate. This gives you:
- Liquidity — Money becomes available every year
- Rate protection — You benefit from rate increases over time
- Higher average return — Longer terms generally pay more
Full strategy: GIC Laddering Guide
GICs vs Other Safe Options
GIC vs HISA
| Feature | GIC | HISA |
|---|---|---|
| Rate | Higher (locked in) | Lower (variable) |
| Access to money | Locked until maturity | Anytime |
| Rate changes | Fixed for term | Can drop |
| Best for | Known timeline | Emergency fund, flex savings |
Full comparison: GIC vs HISA
GIC vs Bond ETF
| Feature | GIC | Bond ETF |
|---|---|---|
| Principal guarantee | Yes | No (price fluctuates) |
| Return | Guaranteed rate | Variable (yield + price change) |
| Liquidity | Locked | Sell anytime |
| Diversification | Single institution | Hundreds of bonds |
| Interest rate risk | None (if held to term) | Yes |
Full comparison: GIC vs Bond ETF vs HISA
Can You Lose Money in a GIC?
No — your principal is guaranteed by the issuing institution, and CDIC insures eligible deposits up to $100,000 per institution.
Full answer: Can You Lose Money in a GIC?
Where to Hold GICs
Best Account Types for GICs
| Account | Tax Treatment | Best For |
|---|---|---|
| TFSA | Interest earned is tax-free | Highest after-tax return |
| RRSP | Interest is tax-deferred | If you have RRSP room and no better investment |
| FHSA | Interest is tax-free | Saving for first home |
| Non-registered | Interest fully taxable | If registered accounts are maxed |
GIC interest is taxed at your full marginal rate (the least tax-efficient income type), so always prioritize holding GICs in a TFSA.
GIC Calculator
Calculate exactly how much your GIC will earn: GIC Calculator
Where to Buy GICs
| Provider | Rates | Minimum | Account Types |
|---|---|---|---|
| EQ Bank | Top tier | $100 | TFSA, RRSP, FHSA, non-reg |
| Oaken Financial | Top tier | $1,000 | TFSA, RRSP, RRIF, non-reg |
| Peoples Trust | Top tier | $1,000 | TFSA, RRSP, RRIF |
| Tangerine | Mid tier | $100 | TFSA, RRSP, non-reg |
| Big 5 banks | Lower tier | $500–$1,000 | All account types |
| Credit unions | Competitive | Varies | All account types |
| Questrade | Access to multiple issuers | $1,000 | TFSA, RRSP, non-reg |
| Wealthsimple | Competitive | $100 | TFSA, RRSP, FHSA |
Brokerages like Questrade offer “brokered GICs” from multiple issuers, making it easy to compare rates without opening accounts at each bank.