Terms and conditions apply; rates are per annum and subject to change without notice. Eligible for CDIC deposit insurance. Non-Registered rates are tiered and based on your balance. 3.25% applies to deposits of $25,000 or more. See WealthONE website for current rates and applicable balance tiers. Highest rate in Canada for non-promotional HISA accounts, as confirmed by WOWA.ca as of October 29, 2026.
Best USD GIC Rates in Canada
Best USD GIC Rates in Canada
| Provider | 6-Month | 1-Year | 2-Year | 3-Year | 4-Year | 5-Year |
|---|---|---|---|---|---|---|
| 3.15%†| 4.25% | 4.45% | 4.50% | 4.45% | 4.50% | |
| 3.65% | 4.25% | 4.35% | 4.40% | 4.45% | 4.50% | |
ICICI Bank | 4.05% | 4.35% | 4.35% | 4.35% | 4.40% | 4.45% |
| 3.00% | 4.15% | 4.05% | 4.10% | 4.15% | 4.10% | |
| 2.90% | 4.00% | 3.95% | 4.00% | 4.05% | 4.10% | |
| 3.10% | 4.00% | 3.95% | 4.00% | 4.05% | 4.10% | |
| 3.10% | 3.90% | 3.95% | 4.00% | 4.05% | 4.10% | |
| 3.60%†| 3.90% | 3.95% | 4.00% | 4.05% | 4.10% | |
| 2.25% | 4.00% | 3.70% | 3.70% | 3.75% | 3.80% | |
National Bank | 0.40% | 3.60% | 3.75% | 3.65% | 3.75% | 3.75% |
ATB Financial | 2.90% | 3.00% | 3.00% | 3.00% | 3.00% | 3.00% |
| 3.10% | 3.90% | – | – | – | – |
Rates are annual rates in U.S. dollars for non-registered USD GICs and term deposits. A dash means the term isn't offered. Scotiabank doesn't post its USD GIC rates online.
†TD's 6-month rate is for its U.S. Dollar Term Deposit (US$5,000 to US$24,999.99), which pays no interest if cashed early. Meridian's 6-month rate is for its redeemable short-term USD GIC, which needs at least $5,000.
Terms and conditions apply. Rates are per annum and subject to change without notice. Eligible for CDIC deposit insurance. See WealthONE's website for current rates and applicable balance tiers. Highest rate in Canada for RRSP HISA accounts, as confirmed by WOWA as of July 24 2026
What Is a USD GIC?
The content below, excluding GIC rates, was last updated on: October 23, 2026
A USD GIC is a guaranteed investment certificate (GIC) in U.S. dollars. You invest U.S. dollars, earn a fixed rate of interest, and get your principal and interest back in U.S. dollars. Some banks call them U.S. Dollar Term Deposits.
USD GICs work like the regular GICs you buy from a Canadian bank or credit union. The difference is the currency. Your principal is guaranteed in U.S. dollars, not in Canadian dollars.
There are three main types of USD GICs:
- Non-redeemable: You can't cash in before maturity. Most long-term USD GICs (1 to 5 years) are non-redeemable GICs, and they usually pay the highest rates.
- Redeemable: You can cash in before maturity, but you earn a lower rate. For example, BMO's US$ Term Deposit Receipt pays 1.00% if you cash in between 30 and 365 days.
- Cashable: You can cash in after a short waiting period, but the payout varies. TD's 1-Year US Dollar Cashable GIC can be cashed after 30 days at its original rate, while TD's U.S. Dollar Term Deposits pay no interest at all if you cash in early.
Check the lender's conditions before you buy a cashable or redeemable GIC. Many pay no interest if you cash in within the first 30 days.
Interest also works differently from lender to lender. Some compound interest annually and pay it at maturity, while others pay simple interest every year. You'll find each provider's rules in the "USD GIC Terms by Provider" table below.
USD GIC Calculator
See what your USD GIC will be worth at maturity in U.S. dollars and in Canadian dollars.
Results are estimates before taxes. For example, US$10,000 for 5 years at 4.10% grows to US$12,050 with simple interest and US$12,225.13 with annual compounding.
For Canadian dollar GICs, use our GIC Calculator or compare GIC rates in Canada.
Are USD GICs Safe?
A USD GIC guarantees your principal and interest in U.S. dollars. There are two risks to think about: the bank or credit union failing, which deposit insurance can cover, and the exchange rate changing, which it doesn't.
Deposit Insurance
CDIC coverage: Since April 30, 2020, the Canada Deposit Insurance Corporation (CDIC) has covered eligible foreign currency deposits, including USD GICs, at its member institutions. CDIC protects eligible deposits up to $100,000 CAD per depositor, per insurance category, per member institution, including principal and interest. USD and CAD deposits in the same category at the same institution share that limit.
For example, say you hold US$50,000 in USD GICs and C$50,000 in Canadian dollar GICs in your name at the same bank. At an exchange rate of 1.40 CAD per USD, your USD GICs are worth C$70,000. Your total is C$120,000, so C$20,000 is above the limit.
If a CDIC member fails, foreign currency deposits are converted to Canadian dollars using the Bank of Canada's exchange rate on the date of failure, and CDIC pays you in Canadian dollars.
Credit union coverage: Credit unions regulated by a province are covered by that province's deposit insurer, not CDIC. Whether your U.S. dollar deposits are covered depends on the province.
| Where you hold your USD GIC | Insurer | USD deposits covered? | Coverage limit |
|---|---|---|---|
| Banks and federal credit unions that are CDIC members, such as RBC, TD, Tangerine and ICICI Bank | CDIC | Yes | $100,000 CAD per category |
| B.C. credit unions, such as Beem and Vancity | CUDIC | Yes | Unlimited |
| Alberta credit unions, such as Servus | CUDGC | Yes | 100% of deposits |
| ATB Financial | Government of Alberta | Yes | Full guarantee |
| Ontario credit unions, such as Meridian and FirstOntario | FSRA | No | Not covered |
If your credit union is in another province, check whether its deposit insurer covers foreign currency deposits before you invest.
Learn more about deposit insurance in Canada.
Currency Risk
A USD GIC won’t lose money in U.S. dollars unless the institution fails and your deposit isn’t covered by deposit insurance, such as a USD GIC at an Ontario credit union or an amount above the CDIC limit. It can still lose value in Canadian dollars. If the Canadian dollar strengthens against the U.S. dollar, your U.S. dollars are worth fewer Canadian dollars when you convert them back. Deposit insurance doesn’t protect you from this.
For example, say you invest US$10,000 in a 1-year USD GIC at 4.00% when the exchange rate is 1.40 CAD per USD. Your investment is worth C$14,000. A year later, the exchange rate has fallen to 1.25.
| Today | At maturity | |
|---|---|---|
| Exchange rate (CAD per USD) | 1.40 | 1.25 |
| Value in U.S. dollars | US$10,000 | US$10,400 |
| Value in Canadian dollars | C$14,000 | C$13,000 |
Even after earning US$400 in interest, your investment is worth C$1,000 less in Canadian dollars. That's a 7.1% loss before fees and taxes.
The opposite can happen too. If the exchange rate rises to 1.50, your US$10,400 is worth C$15,600, an 11.4% gain. In this example, you break even in Canadian dollars if the exchange rate at maturity is about 1.346.
Use the calculator above to see how a different exchange rate would change your return.
USD GIC vs. CAD GIC
| USD GIC | CAD GIC | |
|---|---|---|
| Interest rates | Based on U.S. interest rates | Based on Canadian interest rates |
| Currency exposure | Principal guaranteed in U.S. dollars; value in Canadian dollars changes with the exchange rate | Principal guaranteed in Canadian dollars; no currency risk |
| Deposit insurance | CDIC covers eligible USD deposits at members; Ontario credit union USD deposits aren't covered | CDIC and provincial credit union insurers cover eligible CAD deposits |
| Taxation | Interest taxed as income in Canadian dollars; foreign exchange gains or losses may also be taxable | Interest taxed as income |
| Account types | Usually non-registered accounts only | Widely available in TFSAs, RRSPs, FHSAs and other registered accounts |
| Best for | People who hold, earn or plan to spend U.S. dollars | People saving for expenses in Canadian dollars |
A higher USD rate doesn't always mean a higher return in Canadian dollars. On October 23, 2026, RBC paid 3.90% on a 1-year U.S. Dollar Term Deposit and 2.45% on its posted 1-year Canadian dollar non-redeemable GIC. Say you have C$14,000 and the exchange rate is 1.40. The CAD GIC grows to C$14,343. The USD GIC grows from US$10,000 to US$10,390, which only beats the CAD GIC if the exchange rate at maturity is above about 1.38.
In other words, if the Canadian dollar strengthens by more than about 1.4%, the CAD GIC comes out ahead, and that's before conversion costs. At Tangerine's exchange rates on October 23, 2026, converting to U.S. dollars and back would cost about 3.2%, more than twice the difference between the two rates.
When Should You Buy a USD GIC?
A USD GIC can make sense if you:
- Already hold U.S. dollars and want to earn a guaranteed return without converting them
- Earn income in U.S. dollars, such as from U.S. clients or a U.S. rental property
- Travel to the U.S. often or plan U.S. dollar expenses, such as a vacation property, tuition or a car
- Want part of your savings in U.S. dollars
A Canadian dollar GIC may be a better fit if you plan to spend the money in Canada, want to avoid currency risk, or want to hold the GIC in a TFSA, RRSP or FHSA. It's also usually better if you'd have to convert Canadian dollars to U.S. dollars and back again, because conversion costs can wipe out the extra interest a USD GIC pays. If you'd rather keep your savings flexible, compare high-interest savings accounts, or see how GICs compare with bonds.
If you're waiting for a better exchange rate before converting your U.S. dollars, a short-term USD GIC lets you earn interest in the meantime. Keep in mind that the exchange rate could also move against you.
USD GIC Terms by Provider
Minimums, early cash-in rules, interest and deposit insurance vary by provider.
| Provider | Minimum | Cash in early? | Interest (terms of 1 year+) | Deposit insurance |
|---|---|---|---|---|
| Meridian | $100 | No | Calculated daily, paid at maturity | Not insured |
| Tangerine | $10 | No | Compounded or paid annually | CDIC ($100,000 per category) |
| ICICI Bank | US$1,000 | No | Compounded annually, paid at maturity | CDIC ($100,000 per category) |
| FirstOntario | $1,000 | No | Not stated online | Not insured |
| BMO | US$1,000 | Yes, at a reduced rate | Calculated daily, paid twice a year | CDIC ($100,000 per category) |
| CIBC | US$500 | No | Compounded annually, paid at maturity | CDIC ($100,000 per category) |
| RBC | US$1,000 | No | Simple interest, paid annually | CDIC ($100,000 per category) |
| TD | US$1,000 | No | Simple interest | CDIC ($100,000 per category) |
| Beem Credit Union | Not stated online | No | Not stated online | CUDIC (unlimited) |
| National Bank | $500 | No | Simple or compound, paid annually | CDIC ($100,000 per category) |
| ATB Financial | US$500 (1 year+), US$1,000 (under 1 year) | No | Your choice of payment frequency | Government of Alberta (100%) |
| Servus Credit Union | Not stated online | No | Not stated online | CUDGC (100%) |
| Scotiabank | $500 | No | Paid at maturity | CDIC ($100,000 per category) |
Meridian and FirstOntario are Ontario credit unions. Ontario's deposit insurance doesn't cover foreign currency deposits, so their USD GICs are not insured.
Cashable and Redeemable USD GICs
These USD GICs and term deposits let you take your money out before maturity. Most pay less interest than non-redeemable USD GICs, and many pay no interest if you cash in within the first 30 days.
| Provider | Product | Term | Rate | If you cash in early |
|---|---|---|---|---|
| TD | 1-Year US Dollar Cashable GIC | 1 year | 2.50% | Cash in fully or partly after 30 days at the original rate |
| TD | U.S. Dollar Term Deposit | 30 to 369 days | 3.35% to 3.70% | Cash in the full amount; no interest is paid |
| BMO | US$ Redeemable Short-Term Investment | 364 days | 2.25% | No interest if you cash in within 30 days |
| BMO | US$ Term Deposit Receipt | 30 days to 5 years | 2.70% to 4.10% | You earn 1.00% (30 to 365 days) or 1.50% (366 days to 5 years); no interest within 30 days |
| National Bank | Redeemable USD GIC | 1 to 5 years | 0.30% to 1.00% | Cash in at any time; minimum withdrawal $500 |
| ICICI Bank | Redeemable USD Term Deposit | 1 to 5 years | 1.75% to 2.75% | You earn 0.25% after 6 months; no interest within 6 months |
| ATB Financial | US Dollar Redeemable GIC | 30 days to 5 years | 2.00% to 2.50% | Cash in at any time at a lower rate |
| Vancity | USD Short-Term Redeemable Term Deposit | 30 to 364 days | 3.00% to 3.75% | Cash in the full amount; no interest is paid |
| Meridian | Short-term U.S. Dollar GIC | 30 to 270 days | 2.80% to 3.15% | No interest within 30 days; after that, a fee of one-third of the interest earned |
How Do I Buy USD GICs?
You can buy USD GICs online, by phone or at a branch. Most banks and credit unions require you to be a client or member first. Most USD GICs are only offered in non-registered accounts, so ask your provider if you want one in an RRSP or TFSA.
You'll need U.S. dollars to buy a USD GIC. When you buy, you choose the amount, the term, how interest is paid and what happens at maturity. At maturity, you can have the money paid into your U.S. dollar account or renewed into a new GIC. Many USD GICs renew automatically unless you give other instructions.
How to avoid unnecessary conversion costs:
- Use U.S. dollars you already have. If you hold U.S. dollars in a bank account, use them to buy the GIC directly and skip the conversion.
- Compare exchange rates before converting Canadian dollars. Banks build a markup into their exchange rates. On October 23, 2026, Tangerine charged 1.42 CAD to buy 1 USD and paid 1.375 CAD when you sell 1 USD. That gap is about 3.2%, or about 1.6% each time you convert. At those rates, converting C$14,200 into US$10,000 and straight back would return C$13,750, a loss of C$450.
- Keep the proceeds in U.S. dollars at maturity. You don't have to convert back to Canadian dollars. If you plan to spend in U.S. dollars or buy another USD GIC, keeping the money in U.S. dollars avoids a second conversion.
- Check your maturity instructions. If you want to keep your U.S. dollars, make sure the proceeds go into a U.S. dollar account.
Best USD GICs in Canada
1-Year USD GIC Rate
4.35%
ICICI Bank
3-Year USD GIC Rate
4.50%
Meridian (not insured)
5-Year USD GIC Rate
4.50%
Tangerine, Meridian (not insured)
Tangerine USD GIC
- 1-Year: 4.25%
- 3-Year: 4.40%
- 5-Year: 4.50%
- Minimum Investment: $10
- Redeemable: No
- Insurance: CDIC
Tangerine GIC products have a $10 minimum investment, which is lower than most other providers. Terms range from 90 days to 5 years. For terms of 1 year or longer, interest is compounded or paid annually. For terms under 1 year, interest is paid at maturity.
If you convert Canadian dollars to fund your GIC, Tangerine's exchange rates apply. You pay Tangerine's markup when you convert to U.S. dollars, and again if you convert back to Canadian dollars at maturity. The gap in the table below is the total cost of converting both ways, so each conversion costs about half of it. If you keep your proceeds in a Tangerine US$ Savings Account or another U.S. dollar account, you avoid the second conversion.
| Buy 1 USD | Gap | Sell 1 USD |
|---|---|---|
| 1.435 CAD | 3.2% | 1.39 CAD |
Term options available for Tangerine's USD GICs are:
- 90 Days
- 180 Days
- 270 Days
- 1 Year
- 1.5 Years
- 2 Years
- 3 Years
- 4 Years
- 5 Years
RBC USD GIC
- 1-Year: 3.90%
- 3-Year: 4.00%
- 5-Year: 4.10%
- Minimum Investment: US$1,000
- Redeemable: No
- Insurance: CDIC
RBC's USD GICs are called U.S. Dollar Term Deposits. The minimum investment is US$1,000 for terms of 30 days to 5 years and US$100,000 for terms under 30 days. They can't be cashed before maturity and are only available in non-registered accounts.
For terms under 1 year, interest is paid at maturity. For terms of 1 year or more, interest is paid annually.
TD USD GIC
- 1-Year: 3.90%
- 3-Year: 4.00%
- 5-Year: 4.10%
- Minimum Investment: US$1,000
- Redeemable: Cashable options available
- Insurance: CDIC
There are three types of U.S. dollar investments at TD:
- TD U.S. Dollar GIC: A non-cashable GIC with terms of 1 to 5 years that pays simple interest. It's only offered in non-registered plans.
- TD 1-Year US Dollar Cashable GIC: A 365-day GIC with a minimum investment of US$1,000. You can cash it in fully or partly after 30 days at the original rate.
- TD U.S. Dollar Term Deposits: Terms of 30 to 369 days with a minimum of US$5,000, or 1 to 369 days with US$100,000 or more. Rates are tiered by deposit size. You can cash a term deposit in full before maturity, but no interest is paid.
BMO USD GIC
- 1-Year: 4.00%
- 3-Year: 4.00%
- 5-Year: 4.10%
- Minimum Investment: US$1,000
- Redeemable: Yes, at a reduced rate
- Insurance: CDIC
BMO has three U.S. Dollar GIC options: the BMO US$ Fixed-Term Deposit, the BMO US$ Term Deposit Receipt, and the BMO US$ Redeemable Short-Term Investment.
Most people looking to buy a BMO USD GIC will be looking for the BMO US$ Term Deposit Receipt. It offers terms from 30 days to 5 years in non-registered accounts, with a minimum investment of US$1,000. You can cash it in fully or partly before maturity at a lower redemption rate: 1.00% if you cash in between 30 and 365 days, or 1.50% between 366 days and 5 years. No interest is paid if you cash in within 30 days, and investments of US$100,000 or more can't be cashed early.
Interest is calculated daily. For terms of 1 year or more, it's paid on April 30 and October 31 each year and at maturity. The term options are:
- 30-59 Days
- 60-89 Days
- 90-119 Days
- 120-179 Days
- 180-269 Days
- 270 Days to less than 1 Year
- 1 to less than 2 Years
- 2 to less than 3 Years
- 3 to less than 4 Years
- 4 to less than 5 Years
- 5 Years
BMO's cashable option is the BMO US$ Redeemable Short-Term Investment. It has a 364-day term and a minimum investment of US$5,000. You can cash it in at any time without a lower redemption rate, but no interest is paid if you cash in within 30 days.
For those looking to invest larger amounts of money, the BMO US$ Fixed-Term Deposit has a minimum investment of US$100,000 for terms from 1 day to 5 years. This type of GIC is non-redeemable.
CIBC USD GIC
- 1-Year: 4.00%
- 3-Year: 4.00%
- 5-Year: 4.10%
- Minimum Investment: US$500
- Redeemable: No
- Insurance: CDIC
The CIBC USD Non-Redeemable GIC comes in short terms of 1 to 11 months and long terms of 1 to 5 years, with a minimum investment of US$500. It's only available in a non-registered CIBC Investment Account, so you'll need one to buy it.
For terms of 1 year or less, simple interest is paid at maturity. For longer terms, interest is compounded annually and paid at maturity. CIBC's USD GICs are issued by CIBC Trust Corporation, a CDIC member.
Scotiabank USD GIC
- Not posted online
- Minimum Investment: $500
- Redeemable: No
- Insurance: CDIC
Scotiabank offers US Dollar Non-Redeemable GICs with terms from 1 day to 10 years. The minimum investment is US$100,000 for terms of 1 to 29 days and $500 for terms of 30 days to 10 years. Interest is paid at maturity.
Scotiabank doesn't post its USD GIC rates online. To get a rate, call Scotiabank or book an appointment with an advisor.
National Bank USD GIC
- 1-Year: 3.60%
- 3-Year: 3.65%
- 5-Year: 3.75%
- Minimum Investment: $500
- Redeemable: Available
- Insurance: CDIC
National Bank offers Non-Redeemable USD GICs with terms of 3 months to 5 years, and Redeemable USD GICs with terms of 1 to 5 years. Both need at least $500 and are only offered in non-registered accounts.
Non-redeemable USD GICs pay simple interest, and terms of 2 to 5 years are also available with compound interest. Redeemable USD GICs let you cash in at any time, but they pay much lower rates.
National Bank completed its acquisition of Canadian Western Bank (CWB) in February 2025, and CWB clients and products have since moved to National Bank. National Bank's USD GICs have terms of up to 5 years.
ICICI Bank USD GIC
- 1-Year: 4.35%
- 3-Year: 4.35%
- 5-Year: 4.45%
- Minimum Investment: US$1,000
- Redeemable: Available
- Insurance: CDIC
ICICI Bank Canada offers non-redeemable US$ GICs with terms from 1 month to 5 years and a minimum investment of US$1,000. Interest is compounded annually and paid at the end of the term.
ICICI Bank also offers redeemable USD term deposits with terms of 1 to 5 years, at lower rates. You can redeem early, but you won't earn any interest if you redeem within 6 months of opening. After 6 months, early redemptions earn 0.25%.
Beem Credit Union USD GIC
- 1-Year: 4.00%
- 3-Year: 3.70%
- 5-Year: 3.80%
- Minimum Investment: Contact Beem
- Redeemable: No
- Insurance: CUDIC
BlueShore Financial became part of Beem Credit Union on January 1, 2025, and BlueShore's website now redirects to Beem. Beem offers US dollar non-redeemable term deposits with terms from 30 days to 5 years.
Beem is a B.C. credit union, so its deposits are guaranteed by the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC), not CDIC. CUDIC guarantees 100% of eligible deposits with no limit, including foreign currency deposits.
Meridian USD GIC
- 1-Year: 4.25%
- 3-Year: 4.50%
- 5-Year: 4.50%
- Minimum Investment: $100
- Redeemable: No
- Insurance: Not insured
Meridian's long-term U.S. Dollar GICs are non-redeemable, with terms of 1 to 5 years and a $100 minimum deposit. Its short-term U.S. Dollar GICs, with terms of 30 to 270 days, are redeemable and need at least $5,000. No interest is paid if you redeem within 30 days. After 30 days, you pay a fee equal to one-third of the interest earned. Interest is calculated daily and paid at maturity.
Meridian's U.S. dollar deposits are not covered by deposit insurance. Meridian is an Ontario credit union, and FSRA deposit insurance doesn't cover foreign currency deposits.
FirstOntario USD GIC
- 1-Year: 4.15%
- 3-Year: 4.10%
- 5-Year: 4.10%
- Minimum Investment: $1,000
- Redeemable: No
- Insurance: Not insured
FirstOntario's U.S. dollar GICs are non-redeemable, with terms from 30 days to 5 years, and are available in non-registered accounts. The minimum deposit for a non-registered GIC is $1,000.
Like Meridian, FirstOntario is an Ontario credit union, so its U.S. dollar GICs are not covered by FSRA deposit insurance.
USD GIC Ladder Example
A GIC ladder splits your money across GICs with different maturity dates. Each year, one GIC matures, and you can use the money or reinvest it.
For example, you split US$25,000 into five US$5,000 GICs with terms of 1 to 5 years, using Tangerine's US$ GIC rates on October 23, 2026, with interest compounded annually.
| GIC | Amount | Term | Rate | Value at maturity |
|---|---|---|---|---|
| 1 | US$5,000 | 1 year | 4.25% | US$5,212.50 |
| 2 | US$5,000 | 2 years | 4.35% | US$5,444.46 |
| 3 | US$5,000 | 3 years | 4.40% | US$5,689.47 |
| 4 | US$5,000 | 4 years | 4.45% | US$5,951.19 |
| 5 | US$5,000 | 5 years | 4.50% | US$6,230.91 |
Your average rate is 4.39%. When each GIC matures, you can reinvest it in a new 5-year GIC. After four years, all five GICs earn 5-year rates, and one still matures every year.
- Liquidity: About one-fifth of your money becomes available each year, without cashing in a non-redeemable GIC early.
- Reinvestment risk: If rates fall, each maturing GIC renews at a lower rate. If rates rise, you can lock in higher rates as each GIC matures.
- Currency risk: A ladder spreads out interest rate risk, not currency risk. All five GICs are in U.S. dollars, so their value in Canadian dollars still rises and falls with the exchange rate.
How Is USD GIC Interest Taxed?
Interest from a USD GIC in a non-registered account is taxable as interest income, just like interest from a Canadian dollar GIC. You must report it in Canadian dollars. The CRA says to convert foreign currency amounts using the Bank of Canada exchange rate on the day the amount arises.
You may have to report interest every year, even if it's only paid at maturity. For multi-year GICs, you report the interest earned during each complete investment year. For example, if you buy a 3-year USD GIC on July 1, 2026, you report the interest earned up to June 30, 2027 on your 2027 tax return, even though you won't receive it until 2029. You must report the interest even if you don't get a T5 slip.
Foreign exchange gains or losses are taxed separately from interest. If the Canadian dollar value of your U.S. dollars changes between when you get them and when you convert or spend them, you may have a capital gain or loss. You only report your net foreign exchange gain or loss for the year that's more than $200.
If your provider offers USD GICs in a registered account, the interest grows tax-free in a TFSA and tax-deferred in an RRSP.
USD GIC FAQ
What are the best USD GIC rates in Canada?
The highest 1-year USD GIC rate in our table is 4.35% from ICICI Bank. The highest 5-year rate is 4.50% from Tangerine and Meridian. Meridian's U.S. dollar deposits are not covered by deposit insurance.
Are USD GICs CDIC-insured?
Yes, if they're held at a CDIC member, such as a major bank. CDIC covers eligible foreign currency deposits up to $100,000 CAD per depositor, per insurance category, per member institution, including principal and interest. USD and CAD deposits in the same category share that limit. USD GICs at provincial credit unions are covered by the provincial insurer instead, and Ontario's FSRA doesn't cover foreign currency deposits.
Can a USD GIC lose money?
In U.S. dollars, only if the institution fails and your deposit isn’t covered by deposit insurance, such as a USD GIC at an Ontario credit union or an amount above the CDIC limit. A USD GIC can also lose value in Canadian dollars. If the Canadian dollar strengthens against the U.S. dollar, your principal and interest convert into fewer Canadian dollars. For example, US$10,400 is worth C$14,560 at 1.40 CAD per USD, but only C$13,000 at 1.25.
Can I hold a USD GIC in an RRSP or TFSA?
Sometimes. The CRA says money is a qualified investment for registered accounts whether it's in Canadian or foreign currency, and so are deposits such as GICs. But most USD GICs from Canadian banks and credit unions are only offered in non-registered accounts, including those from RBC, BMO, CIBC, National Bank, ATB Financial and Vancity. Ask your provider whether it offers USD GICs in your RRSP or TFSA, or open a U.S. dollar registered account at a brokerage or online trading platform, where you can hold U.S. dollar cash and other investments.
Is USD GIC interest taxed in Canada?
Yes. Interest from a USD GIC in a non-registered account is taxable as interest income and must be reported in Canadian dollars. For multi-year GICs, you generally report interest each year as it's earned, even if it's paid at maturity. Foreign exchange gains or losses are reported separately, and only the net amount over $200 a year.
Do I have to convert my USD GIC back to Canadian dollars at maturity?
No. You can have your USD GIC paid into a U.S. dollar account or reinvested in another USD GIC. Keeping the money in U.S. dollars avoids a second currency conversion.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA® does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.