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What to Keep in Mind When Comparing GIC Interest Rates in Canada

Have you ever felt your money could be working harder for you, if only you weren’t afraid of the risk?  To boost your return while still keeping your principals safe, consider a Guaranteed Investment Certificate, or GIC.

 

Guaranteed Investment Certificates (GICs) are financial products that let Canadians invest their money and earn a level of guaranteed interest.  With a GIC, you put your faith in money with a financial institution for a specific time.  Overall, they'll guarantee you a return on the principal sum- (the initial amount you invested) and interest at a rate specified in your contract.

 

PRO TIP: When it comes to streamlining and comparing GIC interest rates in Canada, it's all about getting a guide to a variety of terms, types and interest rates.  Comparing the interest rates will help you choose which GIC is best for you.  Before you get started, make sure you understand what a GIC is and how it can help you meet your savings plans.

 

Let's discuss the top three GIC rates that you can apply for in different nationalized banks.

 

Oaken Financial

 

Oaken Financial is a subsidiary of Home Bank whose services and products are available to most Canadians.  There is no denying that they consistently offered some of the highest GIC rates in Canada, ranging from 2.00% to 2.95% with flexible terms from 30 days to 5 years.  It is required to maintain a minimum investment of $1,000 to purchase GICs with this banking body.

 

People’s Trust

 

The People's Trust is also another banking body that offers interest rates on registered and non-registered GICs accounts.  For non-registered accounts, Canadians can get GIC terms ranging from 30 days to 5 years, with rates from 1.80% to 2.55%.  However, registered GIC interest rates vary from 2.50% to 2.65%.  No one can deny that the People’s Trust has been in operation for over 30 years with offices in Vancouver, Calgary and Toronto.  

 

EQ Bank

 

EQ Bank is delivered by Equitable Bank, which has been around since 1970 and is a top choice for market-leading GIC rates in Canada.  Offered GIC terms are from 3 months to 5 years and currently range between 2.10% and 2.50%.  EQ Bank has a minimum deposit of just $100 but one drawback is that it does not offer GICs in registered accounts.  If you’re interested in an EQ Bank GIC, first you have to open a Savings Plus Account which has no everyday banking fees, unlimited Interac e-Transfers®, free day-to-day transactions and a fabulous 2.00%* daily interest rate.  You really can’t go wrong with EQ Bank.

 

Conclusion

 

GICs have been seen playing a crucial role as a secure investment for your short-term and long-terms savings.  Look for the highest GIC rates in Canada that pay interest above inflation, ensuring your original investment is protected and maintains its purchasing power.

 

Match your investment time horizon with an appropriate term to ensure your money earns the maximum interest and is accessible when you need it.  Hence, if you are looking for more information on GICs and how to compare GIC interest rates in Canada, never hesitate to visit our official website!


Maria Delani Maria Delani 08/20/2020
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