Compare Fixed-Rate Deposits in Canada

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What is a fixed deposit in Canada?

A fixed deposit in Canada is a Guaranteed Investment Certificate (GIC) — you lock a sum with a bank or credit union for a set term, from a few months to five years, in return for a guaranteed interest rate. The principal is safe and the return is known in advance, which makes GICs the classic low-risk home for money you will not need for a while.

Because the rate is fixed at purchase, a GIC shields you from falling interest rates during its term, though you give up access to the money until it matures unless you choose a cashable version.

How the Canadian market works

Rates rise with the term and vary widely between providers — online and credit-union issuers such as Oaken, EQ Bank, Motive and Hubert usually pay more than the Big Five branch banks. GICs come in several forms: non-redeemable (highest rate, locked in), cashable/redeemable (lower rate, early access), and market-linked (return tied to an index with principal protected). You can hold GICs inside a TFSA, RRSP or FHSA to shelter the interest from tax.

A common tactic is "laddering" — splitting money across several terms so a portion matures each year, balancing rate and access.

Benefits

Guaranteed return — the rate and payout are fixed when you buy, with no market risk.

Principal protection — your original deposit is never at risk at a CDIC or credit-union member.

Rate lock — protects your yield if interest rates fall during the term.

Registered options — hold inside TFSA, RRSP or FHSA to shelter interest from tax.

How to choose

Match the term to when you will need the money — locking in longer usually earns more but ties up funds. Compare rates across online banks and credit unions, which typically beat the branch banks, and decide whether you need a cashable option for flexibility. Consider a ladder if you want both competitive rates and periodic access, and use a registered wrapper if the interest would otherwise be taxed.

Leading providers in Canada

Oaken Financial (Home Trust), EQ Bank, Motive Financial and Hubert Financial consistently offer some of the highest GIC rates, along with Simplii Financial. The Big Five — RBC, TD, CIBC and others — offer GICs too, convenient if you already bank there but usually at lower rates. Credit unions, provincially insured, are also competitive.

What it costs

GICs cost nothing to buy; the number that matters is the rate. Current fixed-deposit rates in the market sit roughly in the 4.25% to 5.4% range depending on term and provider, with shorter or cashable products usually at the lower end. There are no ongoing fees, though breaking a non-redeemable GIC early is generally not allowed.

Protections and regulation

Deposits at CDIC member banks are insured up to C 00,000 per insured category (and separately within registered plans), covering GICs with terms up to five years. Credit-union GICs are covered by provincial deposit-insurance schemes, some with higher or unlimited limits. Issuers are regulated federally by OSFI or by provincial authorities, with the AMF overseeing Quebec institutions.

Common questions

Can I get my money out early? — Only from a cashable or redeemable GIC; non-redeemable GICs are locked until maturity.

Is the interest taxed? — Yes in a non-registered account, but sheltered inside a TFSA, RRSP or FHSA.

Are online-bank GICs safe? — Yes, provided the issuer is a CDIC member or covered by provincial insurance within the limits.

Fixed-Rate Deposits in Canada — FAQ