Best GIC Rates in Canada: How to Lock in Safe Returns on Your Savings
Key impact: You can earn guaranteed interest on your savings right now, with top 5-year GIC rates reaching 4.05%. This helps protect your money from inflation without taking stock market risks.
If you have cash sitting in a low-interest savings account, you could be missing out. Guaranteed Investment Certificates (GICs) offer a safe way to grow your money. Here is what you need to know about the best rates available in Canada as of 2026.
What are GICs?
A GIC is a low-risk savings product. You deposit money for a set term. The bank guarantees your original deposit and pays a fixed interest rate. You cannot access the money early without a penalty (unless you choose a redeemable GIC).
Current top GIC rates
According to Ratehub.ca, here are the best rates available now:
| Term | Rate | Institution | Minimum Investment |
|---|---|---|---|
| 1-year | 3.60% | Achieva Financial | $100 |
| 3-year | 3.70% | Oaken Financial | $1,000 |
| 5-year | 4.05% | Achieva Financial | $100 |
These rates apply to registered accounts (like TFSAs and RRSPs) and non-registered accounts.
What this means for your money
Let's look at an example. If you invest $10,000 in a 5-year GIC at 4.05%, you would earn about $2,200 in interest over the full term. That is guaranteed — no market ups and downs.
Compare that to a standard savings account paying 1% or less. The difference is significant.
Who is affected
- Conservative savers — If you avoid stock market risk, GICs are a solid choice.
- Retirees — You can earn safe income on your savings.
- Anyone with emergency funds — Only lock in money you won't need soon.
- TFSA and RRSP holders — You can hold GICs inside these accounts for tax-free or tax-deferred growth.
What you should do
- Check your current savings rate. If your bank pays less than 3%, you are losing money to inflation.
- Decide when you need the money. Short-term GICs (1-2 years) offer flexibility. Longer terms (3-5 years) offer higher rates.
- Compare rates from multiple institutions. Use sites like Ratehub.ca to see all options.
- Check CDIC insurance. Most GICs are insured up to $100,000 per institution by the Canada Deposit Insurance Corporation (CDIC). Some credit unions have provincial insurance.
- Choose a term that matches your needs. Do not lock in money you may need before the term ends. Most GICs are non-redeemable.
- Consider a GIC ladder. Split your money across different terms (1, 2, 3, 4, and 5 years). This gives you access to some money each year while earning higher rates on longer terms.
Bottom line
GICs are a safe option for conservative savers. The best 5-year rate right now is 4.05% from Achieva Financial. If you think interest rates will rise further, a shorter term may be better. But if you want guaranteed returns and can leave your money untouched, locking in a longer term at today's rates makes sense.
Remember: Do not invest money you may need before the term ends. And always compare rates — even small differences add up over time.