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3-Year

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3-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	4.05% Get This Rate
MCAN Financial	4.00%
Pathwise Credit Union	3.90% Get This Rate
Hubert	3.85%
Saven Financial	3.85%
Outlook Financial	3.85%
MAXA Financial	3.85%
EQ Bank	3.80% Get This Rate
Equitable	3.75%
Achieva Financial	3.75%
Haventree Bank	3.74%
Bridgewater Bank	3.74%
Tangerine	3.70%
ICICI	3.70%
Motive Financial	3.70%
Peoples Bank	3.65%
Manulife	3.55%
Oaken	3.55%
Simplii Financial	*3.45%*
FirstOntario Credit Union	3.40%
Laurentian	3.35%
LBC Digital	3.35%
Alterna Bank	3.30%
BMO	3.30%
Meridian	3.30%
Sun Life	3.20%
ATB Financial	3.15%
Scotiabank	3.15%
RBC	3.10%
TD	3.10%
CIBC	3.10%
Affinity Credit Union	3.10%
National Bank	3.10%
Canadian Western Bank	3.05%
motusbank	2.85%

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

*Compounded monthly

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1-Year

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What Are 3-Year GICs?

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

Guaranteed Investment Certificates (GICs), or GICs, are among the most common types of investments available in Canada. The key features of a GIC are:

• GICs offer a guaranteed return on investments while protecting the initial investment, making them very low-risk investments.
• The term of the GIC dictates the length of the investment and also determines the interest that will be paid on the investment. For example, with a 3-year GIC, the principal is invested for 3 years, and you will receive interest on your investment each year.
• Most GICs also allow for the interest to be compounded annually or semi-annually and, in some cases, monthly.

All GICs with a term length longer than 1 year, including 3-year GICs, are categorized as long-term GICs. The interest rate on GICs typically increases with the term length, meaning 5-year GICs usually have a higher interest rate than 3-year GICs. In rare situations, longer-term GIC rates are less than shorter-term GIC rates, such as what we are observing in August 2024. The best 5-year GIC rate available in August 2024 is 4.35%, but the best 3-year GIC rate available is 4.50%. This situation is called an inverted yield curve and generally signifies that interest rates are expected to drop in the future.

Investors often compare government bonds and GICs, as both of them offer guaranteed returns on investments. When you purchase a GIC, you essentially deposit the money with a financial institution for a fixed length of time and earn interest on it. On the other hand, you can lend money to the government or corporations by purchasing their bonds, and you can earn an interest for the same. Comparing the average returns of 1-year GICs and bonds in the longer term, bonds have historically outperformed GICs in terms of annual returns over the last 40 years.

However, there have been short-term scenarios where GICs have outperformed bonds, such as that observed in 2022-2023. During this time, the Bank of Canada significantly raised its policy interest rate, due to which the bond yield experienced a sharp decline. Meanwhile, GIC rates increased in this period and provided higher returns than bonds.

GICs can be classified under three categories based on their redemption -

• Non-Redeemable GICs: These GICs cannot be redeemed or cashed until maturity. This means if you invest in a 3-year non-redeemable GIC for 3 years, your principal investment would be locked away for 3 years, and you won’t be able to access those funds during this time.

• Redeemable GICs: These types of GICs can be redeemed before maturity at predetermined interest rates that are significantly lower than the initial rate of the GIC. The redemption rate generally depends on when you redeem.

• Cashable GICs: Cashable GICs can also be redeemed before the maturity date. These GICs generally have a 30-day waiting period, during which a redemption would yield no interest. After the waiting period, the interest rate offered is applied, and you receive interest up to the date of redemption. Cashable GICs typically have a 1-year term, but you can renew the GIC when it matures to continue investing it in for a longer period such as 3 years.

GICs can be held in non-registered accounts as well as in a registered account, such as a Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP) and First Home Savings Account (FHSA). Investing in GICs through registered accounts can have potential tax benefits. Therefore, you may consider investing in registered GICs if you have a TFSA contribution room or RRSP contribution room available for the year.

Most 3-year GICs available in Canada are insurable up to a certain limit. The CDIC (Canadian Deposit Insurance Corporation) insurance insures GICs offered by federally regulated providers, such as banks and credit unions, up to a maximum of $100,000 per account. This means that the principal plus interest of up to $100,000 for each account remains protected in case the financial institution fails. On the other hand, provincial regulators insure GICs offered by provincial credit unions, and the limit varies depending on the insurer.

RBC 3-Year GIC Rates

3-Year: 3.10%

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 November 13 2024

TD 3-Year GIC Rates

3-Year: 3.10%

TD GIC Terms:

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

Current TD Non-Redeemable GIC Rates as of November 13 2024

Scotiabank 3-Year GIC Rates

3-Year: 3.15%

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 November 13 2024

BMO 3-Year GIC Rates

3-Year: 3.30%

BMO GIC Terms:

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

Current BMO Non-Redeemable GIC Rates as of November 13 2024

CIBC 3-Year GIC Rates

3-Year: 3.10%

CIBC GIC Terms:

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

Current CIBC Non-Redeemable GIC Rates as of November 13 2024

National Bank 3-Year GIC Rates

3-Year: 3.10%

National Bank GIC Terms:

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

Current National Bank Non-Redeemable GIC Rates as of November 13 2024