GICs and high-interest savings accounts (HISAs) are both insured deposits that pay interest without putting the principal at risk. The choice between them is not about safety; it is about rate certainty against access. A GIC fixes the rate for a term and ties the money up; a HISA leaves the money available every business day at a rate the institution can change at any time.
This page compares the two and sorts savings goals between them. For how GICs work in general, see the GIC guide; the GIC hub lists every GIC page.
GIC vs HISA at a glance
| Feature | GIC | HISA |
|---|---|---|
| Interest rate | Fixed for the term | Variable, can change at any time |
| Access | Locked until maturity (non-redeemable) or after 30 to 90 days (cashable) | Any business day |
| Effect of a Bank of Canada cut | None on a GIC you already hold | Rate often falls, at the institution’s discretion |
| Effect of a Bank of Canada hike | Missed until the GIC matures | Rate often rises, at the institution’s discretion |
| Principal risk | None | None |
| Deposit insurance | CDIC up to $100,000 per category, or provincial credit union insurance | Same |
| Minimum deposit | Varies; none to $1,000 at the institutions tracked on the rates page | Often none |
| Tax | Interest taxed at your marginal rate unless held in a registered account | Same |
For current numbers, see best GIC rates and best HISA rates. The premium a GIC pays over a HISA changes with the rate cycle and the institution: at the big banks, where regular savings rates are low, it tends to be wide; at online banks with competitive HISAs, a 1-year GIC can pay little more than the savings account, and the gap is usually wider at 2- to 5-year terms.
When a GIC fits
The date is known. Money for tuition next September, a car in two years or a renovation planned for next spring can sit in a GIC whose term ends when it is needed. The rate is set on day one and does not depend on what the Bank of Canada does during the term.
Rates are expected to fall. Each cut lowers HISA rates, while a GIC bought before the cut keeps paying its original rate. That protection is worth most when rates are coming down.
You want part of the money every year. A GIC ladder splits savings across 1- to 5-year terms, so a portion matures every year while the rest earns longer-term rates.
Out of sight helps. For savers who find money in a HISA easy to spend, a non-redeemable GIC’s lock-in works as a commitment device.
When a HISA fits
Emergency money. An emergency fund needs to be reachable within a day. A non-redeemable GIC offers no access, and a cashable one usually requires a holding period first. The emergency fund guide covers how much to keep.
The timeline is uncertain. If a home purchase could happen in three months or eighteen, a HISA keeps every option open.
Rates are rising. Increases often flow through to HISA rates; a GIC bought before the increase keeps its lower rate until maturity.
Money in transit. Savings being built up to a GIC minimum, or held between investment decisions, earn interest in a HISA while they wait.
Matching savings goals to the account
| Savings goal | Common choice | Why |
|---|---|---|
| Emergency fund | HISA | Same-day access |
| Goal under 6 months away | HISA | Too short for a lock-in to pay off |
| Goal 6 to 18 months away | Cashable GIC or HISA | A cashable GIC may pay a little more with some access |
| Known expense 1 to 5 years away | Non-redeemable GIC | Fixed rate matched to the date |
| Down payment | HISA plus GICs, often inside an FHSA | Access for the uncertain part, fixed rates for the rest |
| Conservative retirement savings | GIC ladder in an RRSP, RRIF or TFSA | Yearly maturities at a blend of rates |
Rate cycles and the choice
Falling rates. A saver who locked in a 3-year GIC keeps that rate for three years even if the Bank of Canada cuts several times, while the same money in a HISA would likely earn less as the institution lowers its rate.
Rising rates. The reverse: a HISA rate usually rises after hikes, and a GIC bought before them is stuck at the old rate. Savers who expect hikes often stay short, in a HISA or short GICs, until rates settle.
Stable rates. Most savers split by goal, using the table above.
Tax is the same for both
GIC and HISA interest are both taxed as ordinary income at your marginal rate in a non-registered account, so the account often matters more than the product. Holding either inside a TFSA makes the interest tax-free; an RRSP or FHSA defers or removes the tax. The guide to how GIC interest is taxed shows the after-tax difference, and the TFSA hub covers holding a GIC inside a TFSA.
Where bonds fit
Bond ETFs are a third low-risk option: they can be sold any trading day, but their price falls when interest rates rise, so they are not guaranteed the way a GIC or HISA is. GIC vs bonds compares GICs with bonds and bond ETFs, and GIC vs bond ETF vs HISA puts all three side by side.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- cdic.ca: What's covered — CDIC
- oaken.com: Oaken Financial - Our GIC rates
- Statistics Canada: Financial market statistics, as at Wednesday, Bank of Canada