From timing rates to upstart lenders: How to get the most out of your next GIC

Bank of Canada notes are displayed at the Bank of Canada museum in Ottawa on Wednesday, July 12, 2023. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO — As wars, tariffs, swinging commodity prices and a bond slump rankle markets, the stability of one investment vehicle is drawing Canadians in: Guaranteed investment certificates.

GICs help people earn guaranteed interest on money they invest for a set period of time. The longer they promise to lock in their cash, the better the interest rates they’re offered.

While GIC earnings don’t often outpace gains the savviest investors find through stock markets and aren’t ideal for people who may soon need quick access to their cash, their proponents like that they can insulate investors from see-sawing or declining markets.

“Our research showed that the amount of Canadians holding GIC investments has actually grown throughout the years, particularly during that high-interest rate environment of 2022 and 2023,” said Natasha Macmillan, senior business director of everyday banking at comparison website Ratehub.

“Even in today’s market where we aren’t seeing that massive growth in the interest rates, it does seem to be quite a positive product that is gaining a lot of focus from Canadians.”

So how can investors get the most out of their GICs? The Canadian Press asked experts for their top tips.

Take advantage of timing

Financial institutions use the Bank of Canada’s benchmark interest rates to set their GIC rates. When interest rates move up or down, GIC rates tend to follow the same pattern.

If you make your investments around the central bank’s announcement period, you can often snag better terms because you can lock in when rates are about to drop and hold off when they’re likely to rise, Macmillan said.

Jason Heath, an advice-only financial planner at Objective Financial Partners, said it can be advantageous to “ladder” your GICs instead of lumping them together, so they mature at regular intervals.

“Then every year you’ve got a GIC maturing as opposed to putting all of your money into a single five-year GIC,” he said. “If you buy a single five-year GIC and at maturity, interest rates happen to be particularly low, you’ve got an element of interest rate risk.”

Look at smaller, digital-first banks

Heath said you’re going to be hard pressed to find the best GIC rates at your bank.

Digital-first financial institutions or smaller lenders, who are more eager to build their customer bases and coffers, tend to offer more competitive rates, in part because they have lower overhead costs.

“Shopping around can actually make quite a meaningful difference, especially if you’re investing larger balances,” Macmillan said.

To find out what other institutions are offering, call them or use their website and rate comparison sites.

Ask your institution to compete

If you find your financial institution’s rate is lagging what others offer, compile the data and ask what more they can do for you.

Macmillan said they’re not always able to match another offer, but they “might be able to move a few basis points here or there.”

“It’s always worth the conversation,” she said.

To bolster your case, bring up the “lifetime value” you have with the institution — the number of products you have, how long you’ve been a customer and how much you’ve invested with them.

“The whole financial wealth suite can actually impact their decision,” she said.

Heath said he’s seen cases where banks will match on GIC rates.

“Sometimes it depends on how valuable a client you are to them. Sometimes it’s how eager the bank rep is to make that sale and how much they’re potentially willing to cut out from their commission,” he said.

Do your research before switching

If you’re interested in signing up for a GIC with an institution you don’t already invest with, research it first and perhaps, don’t switch over all of your accounts.

Heath said some digital-first banks won’t have as many products or branches, reducing their convenience.

“I’ve seen cases where you can get a mortgage from one of these financial institutions, but you can’t get a home equity line of credit, for example, so you may end up trading a higher interest rate on a GIC or a lower interest rate on a mortgage for banking services that aren’t as good. So it’s something to be careful about,” he said.

“In some cases maybe buying a GIC or having a high-interest savings account is how far you should take it.”

Consider a deposit broker

Deposit or GIC brokers scour the market to find their clients the best rates.

“It could be worth it, I think, particularly if you have a larger amount of money that you’re looking to buy a GIC with or if you’d rather not negotiate with the bank and you’d rather have somebody who’s on your side just trying to figure out the best interest rates available out there,” Heath said.

This report by The Canadian Press was first published June 11, 2026.

Tara Deschamps, The Canadian Press