Highest2-YearGIC Rates

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2-Year

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Best 2-Year GIC Rates in Canada

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Non-Registered Rate

Registered/TFSA Rate

GIC Type

Non-Registered RateRegistered/TFSA Rate

Provider	Rate
WealthONE	4.60% Get This Rate
Hubert	4.55%
Pathwise Credit Union	4.50% Get This Rate
Outlook Financial	4.50%
ICICI	4.25%
EQ Bank	4.10% Get This Rate
Tangerine	4.10%
Oaken	4.10%
Peoples Bank	4.05%
LBC Digital	4.00%
Alterna Bank	3.95%
Equitable	3.93%
Haventree Bank	3.92%
FirstOntario Credit Union	3.90%
Laurentian	3.85%
Meridian	3.85%
Bridgewater Bank	3.85%
Affinity Credit Union	3.75%
TD	3.70%
Canadian Western Bank	3.65%
National Bank	3.60%
RBC	3.60%
Scotiabank	3.50%
ATB Financial	3.50%
BMO	3.50%
Manulife	3.50%
CIBC	3.45%
Sun Life	3.45%
motusbank	3.35%
Simplii Financial	*3.35%*

Note: GIC rates shown are for non-redeemable GICs with annual compounding.

*Compounded monthly

Highest1-YearGIC Rates

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1-Year

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What Are 2-Year GICs?

The content below, excluding GIC rates, was last updated on: September 12th, 2024

Guaranteed Investment Certificates (GICs) are one of the most popular forms of investment in Canada, especially for risk-averse investors. As their name suggests, GICs offer guaranteed returns on investments. When you invest in a GIC, your investment is locked for the length of the term you have selected, and you earn interest on it for that duration. When you invest in a 2-year GIC, your investment is locked for 2 years.

2-year GICs and all GICs with a term length longer than 1 year fall under the category of long-term GICs. Usually, the interest rates increase with the term, meaning a 5-year GIC will often offer a higher interest rate than a 2-year GIC. However, sometimes, the shorter-term rates are higher than the longer-term rates, and this situation is called an inverted yield curve. An inverted yield curve signals that the rates will fall in the future and often also hints at an economic slowdown.

Both GICs and bonds offer guaranteed returns on investments. Bonds have consistently outperformed GICs in the long term, with a much better average annual return over the last 40 years. However, GICs can outperform bonds in some short-term scenarios, such as when interest rates suddenly increase. A recent example is 2022 - 2023, when the Bank of Canada hiked its policy rates significantly, causing the bond prices to drop sharply. During this time, GIC rates increased and provided higher returns than bonds.

2-year GICs in Canada can be held in non-registered accounts as well as registered accounts, such as Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), Registered Education Savings Plans (RESP) and more. Investing in GICs through registered accounts can have potential tax benefits. Therefore, if you have a TFSA contribution room or RRSP contribution room available, you may consider investing in 2-year GIC options through these accounts. If you are saving up for the purchase of your first home, you may also consider investing in GICs through a First Home Savings Account (FHSA) to grow your savings tax-free.

Another basis for the classification of 2-year GICs is their redemption. 2-year Non-redeemable GICs cannot be redeemed for two years. Redeemable GICs can be redeemed early at a predetermined early redemption rate, which is much lower than the original GIC rate. Cashable GICs also have a lower rate than non-redeemable GICs. They can be cashed at that rate anytime after the initial waiting period, which is usually 30 days. Cashing the GICs during the waiting period yields zero interest. Most cashable GICs have a 1-year term, but you can renew the GIC at the end of the first year to invest in it for 2 years.

Most GIC investments are eligible for either CDIC (Canadian Deposit Insurance Corporation) insurance or insurance from provincial regulators. This means that the investments within the insurer's prescribed limits will remain safe even if the financial institution you have invested with fails for some reason.

RBC 2-Year GIC Rates

2-Year: 3.60%

RBC GIC Terms:

• Minimum Investment: $1,000
• Eligible for: RRSP, TFSA, RESP, RRIF, LIF, and RDSP (min. $500)

Current RBC Non-Redeemable GIC Rates as of September 18 2024

TD 2-Year GIC Rates

2-Year: 3.70%

TD GIC Terms:

• Minimum Investment: $1,000
• Eligible for: RRSP, TFSA, RESP, and RRIF

Current TD Non-Redeemable GIC Rates as of September 18 2024

Scotiabank 2-Year GIC Rates

2-Year: 3.50%

Scotiabank GIC Terms:

• Minimum Investment: $500
• Eligible for: RRSP, RESP, TFSA, RDSP, RIF, LIF, LRIF, and RLIF

Current Scotiabank Non-Redeemable GIC Rates as of September 18 2024

BMO 2-Year GIC Rates

2-Year: 3.50%

BMO GIC Terms:

• Minimum Investment: $1,000
• Eligible for: RRSP, TFSA, RESP, RIF, and RDSP

Current BMO Non-Redeemable GIC Rates as of September 18 2024

CIBC 2-Year GIC Rates

2-Year: 3.45%

CIBC GIC Terms:

• Minimum Investment: $1,000
• Eligible for: RRSP, TFSA, RRIF, and LIF

Current CIBC Non-Redeemable GIC Rates as of September 18 2024

National Bank 2-Year GIC Rates

2-Year: 3.60%

National Bank GIC Terms:

• Minimum Investment: $500
• Eligible for: RRSP and TFSA

Current National Bank Non-Redeemable GIC Rates as of September 18 2024