Highest4-YearGIC Rates

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4-Year

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Best 4-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	3.95% Get This Rate
MCAN Financial	3.90%
MAXA Financial	3.80%
Outlook Financial	3.80%
Pathwise Credit Union	3.80% Get This Rate
EQ Bank	3.75% Get This Rate
Hubert	3.75%
Saven Financial	3.75%
Tangerine	3.70%
Achieva Financial	3.70%
Haventree Bank	3.67%
Equitable	3.66%
Peoples Bank	3.60%
Motive Financial	3.60%
Oaken	3.55%
Simplii Financial	*3.54%*
ICICI	3.50%
Manulife	3.46%
Bridgewater Bank	3.40%
FirstOntario Credit Union	3.40%
Laurentian	3.35%
LBC Digital	3.35%
National Bank	3.30%
Sun Life	3.30%
BMO	3.25%
Meridian	3.25%
Alterna Bank	3.25%
ATB Financial	3.10%
Scotiabank	3.10%
RBC	3.05%
TD	3.05%
CIBC	3.05%
Affinity Credit Union	3.05%
Canadian Western Bank	3.00%
motusbank	2.80%

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 4-Year GICs?

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

One of the lowest-risk investment vehicles in Canada is Guaranteed Investment Certificates (GICs). When you invest in a GIC for a particular term, the investment is locked away for the length of that term. For example, when you invest in a 4-year GIC, your principal investment is locked for a term of 4 years, and you keep earning interest on it during that time. GICs with term lengths of less than 1 year are called short-term GICs, and those with a term length of 1 year or more are categorized as long-term GICs.

Generally speaking, GIC rates increase with the increase in the term length. For example, a 4-year GIC rate is usually higher than a 1-year GIC rate. However, in rare situations, the opposite becomes true, such as what is being observed in January 2024. As of August 2024, the best available GIC rate for a 1-year GIC is 5.25%, but for a 4-year GIC, it is 4.45%. A situation like this is called an inverted yield curve and signifies that interest rates will drop in the future.

Most 4-year GICs are eligible for deposit insurance, such as the CDIC (Canadian Deposit Insurance Corporation) insurance. This means that GIC investments within the insurer's prescribed limit are protected even if the financial institution collapses. While CDIC insures GICs provided by federally regulated institutions, such as banks, provincial regulators insure the GICs provided by credit unions. The insured amount is independent of the term length of the GIC. For example, CDIC insures up to $100,000 per account, which could hold a 1-year GIC or even a 4-year GIC.

Historically speaking, 1-year GICs have been outperformed by bonds based on average annual return over the last 40 years. However, in some scenarios, GICs have performed better than bonds in the short term. This was observed in 2022-2023 when the Bank of Canada raised its policy rate from 0.25% to 5.00%. Bond prices move in the opposite direction of the interest rates; therefore, the bond prices fell significantly during this time. On the other hand, GIC rates increased in this period and provided higher returns than bonds.

There are three types of GICs based on redemption -

• Non-Redeemable GICs: GICs that can’t be cashed out before their maturity date are called non-redeemable GICs.

• Redeemable GICs: Redeemable GICs can be cashed at any time at predetermined redemption rates that are much lower than the initial GIC rate. The redemption rates vary depending on when you redeem the GIC.

• Cashable GICs: Cashable GICs can also be cashed at any time. Cashable GICs typically have an initial waiting period of 30 days. If you redeem the GIC within this time, you will earn no interest. If you redeem any time after the initial waiting period, you will earn interest at the GICs interest rate up to the date of redemption. Cashable GICs usually have a 1-year term, but you can continue to renew the GIC at maturity if you want to invest in a cashable GIC for a longer term, such as 4 years.

You can invest in GICs through non-registered accounts as well through 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). You can take advantage of the tax breaks that come with registered accounts by investing in GICs through them. GICs usually have better interest rates than even high-interest savings accounts. Therefore, you may consider investing in GICs rather than just holding the money in a savings account if you don’t need access to those funds in the near future.

RBC 4-Year GIC Rates

4-Year: 3.05%

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 4-Year GIC Rates

4-Year: 3.05%

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 4-Year GIC Rates

4-Year: 3.10%

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 4-Year GIC Rates

4-Year: 3.25%

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 4-Year GIC Rates

4-Year: 3.05%

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 4-Year GIC Rates

4-Year: 3.30%

National Bank GIC Terms:

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

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