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1
EQ Bank Registered GIC
On EQ Bank’s Website
APY:
3.75% (3 month) to 5.15% (1 year)
Minimum Deposit Requirement:
$0
Term:
3 months to 10 years
2
Tangerine GIC
On Tangerine’s Website
APY:
3.25% to 5.20%
Minimum Deposit Requirement:
Not Specified
Terms:
90 days to 5 years
Best TFSA GIC Rates Currently Available In Canada
The following are the best TFSA GIC rates available in Canada as of March 22, 2024:
- EQ Bank – 5.35% (1-year)
- Saven Financial – 5.45% (1-year)
- Peoples Trust — 5.40% (1-year)
- Hubert Financial and Ideal Savings – 5.35% (1-year)
- Oaken Financial — 5.35% (1-year)
- Achieva, Motive and Outlook Financial – 5.20% (1-year)
- Wealth One Bank of Canada – 5.05% (1-year)
Best TFSA GIC Rates In Canada For 2024
We’ve compared 504 GICs at 43 nationally available banks and credit unions to find some of the best options available. See below to learn more about why we picked each GIC, the pros and cons, rates, minimum deposits and terms.
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Motusbank Escalator TFSA GIC
4.8
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
APY
3.15% to 3.55%
Minimum Deposit Requirement
Not specified
Term
3 or 5 years.
APY
3.15% to 3.55%
Minimum Deposit Requirement
Not specified
Term
3 or 5 years.
Why We Picked It
The word “Escalator” in Escalator TFSA GIC means that every year the fixed interest rate offered goes up. As a result, the longer you keep your money in the GIC, the more interest you earn. Once the whole term comes to an end, the average of those escalating rates gives you what Motusbank calls, “The Total Yield.” Plus, after each year, you’ll get the option to convert your money to a different type of GIC, giving you some measure of flexibility.
Pros & Cons
- Know exactly what interest rate you’re getting at all times
- Your interest goes up, the longer you keep your money in the GIC
- No minimum deposit required.
- Redeemable on the account anniversary date each year.
- Can’t take out your money at any time
- Must keep your money in the GIC for the full term to get the maximum interest
- Interest only increases incrementally
Details
- Eligible for CDIC insurance
- Also available for RRSPs and RRIFs
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TD Long-Term and Simple Interest GIC
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
APY
4.25% to 4.90%
Minimum Deposit Requirement
Not specified
Term
1 year to 5 years
APY
4.25% to 4.90%
Minimum Deposit Requirement
Not specified
Term
1 year to 5 years
Why We Picked It
This is a no frills GIC with no special qualities and no cashable ability. This is for people who don’t mind putting their money away for the long-term (five years) and not seeing it until the end of the term. It’s on this list because the APY is as high as 4.90% in year one and 4.25% in year five.
Pros & Cons
- Just set it and forget it
- Relatively high interest
- No minimum deposit
- Non-cashable and non-redeemable
- No instant access to your money
Details
- CDIC insured
- Available for non-registered and Registered (TFSA, RSP, RIF, RESP) accounts
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Tangerine Tax-free Guaranteed Investment
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
APY
3.50% to 5.25%
Minimum Deposit Requirement
Not specified
Term
90 days to 5 years
On Tangerine’s Website
APY
3.50% to 5.25%
Minimum Deposit Requirement
Not specified
Term
90 days to 5 years
Why We Picked It
Get a competitive rate without having to pay tax by having a tax-free GIC from Tangerine. The digital bank offers better rates than most of the traditional banks because it doesn’t have the same costs.
Pros & Cons
- Guaranteed return of up to 5.20% (for a 1 year term)
- Short-term options of 90, 180 and 270 days
- Long-term options of 1, 1.5, 2, 3, 4 and 5 years
- Interest earned is capped because it’s a regular GIC, not a market-linked GIC
- Terms are limited to five years
Details
- Also available for RRSPs, RRIFs and non-registered accounts
- Eligible for CDIC insurance coverage
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Meridian 18-Month GIC
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
APY
4.70%
Minimum deposit
$100
Term
18 months
APY
4.70%
Minimum deposit
$100
Term
18 months
Why We Picked It
The one major knock against fixed rate GICs is always that to see the maximum amount of interest generated, you must invest your money and then not touch it gain until a term that is usually between three and 10 years. But with the 18-month GIC from Meridian Credit Union, you get the usual guaranteed return on your investment, but you can access your money again after only 18 months. Plus, you only have to commit a $100 minimum deposit to open this GIC and get a relatively high annual percentage yield in a short amount of time.
Pros & Cons
- Guaranteed interest and principal
- Low minimum investment requirement
- Money is locked away for a short period of time
- High guaranteed interest rate.
- Non-redeemable
- Interest gets no higher than 4.70%
Details
- Also available for RRSP accounts
- All investments on registered accounts are insured in their entirety by the Financial Services Regulatory Authority (FSRA)
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Meridian Escalator GIC
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
APY
4.05% to 4.55%
Minimum Deposit Requirement
$100
Terms
3 years and 5 years
APY
4.05% to 4.55%
Minimum Deposit Requirement
$100
Terms
3 years and 5 years
Why We Picked It
This fixed interest GIC comes in two term varieties: three years and five years. The fixed interest rate increases every year with the opportunity for a decent average yield of 4.25% with both terms. Plus, you get access to your money every year to take it out or convert it to another long-term non-redeemable GIC. Your principal and interest is always guaranteed and your funds are insured in their entirety by FSRA.
Pros & Cons
- Principal and interest guaranteed
- The longer you invest your money, the more interest you make
- Low minimum investment
- Ability to convert to a non-redeemable long-term GIC every year.
- Your interest only goes as high as 4.55% and only in the fifth year.
- Only available for registered accounts.
Details
- Funds are insured entirely by the Financial Services Regulatory Authority (FSRA)
- Also available for RRSP accounts
Summary of Best TFSA GIC Rates in Canada
| Guaranteed Investment Certificate (GIC) | Forbes Advisor Rating | Annual Percentage Yield | Minimum Deposit Requirement | Terms |
|---|---|---|---|---|
| Motusbank Escalator TFSA GIC |  | 3.15% to 3.55% | Not specified | 3 or 5 years |
| TD Long-Term and Simple Interest GIC |  | 4.25% to 4.90% | Not specified | 1 to 5 years |
| Tangerine Tax-free Guaranteed Investment | | 3.25% to 5.25% | Not specified | 90 days to 5 years |
| Meridian 18-Month GIC | | 4.70% | $100 | 18 months |
| Meridian Escalator GIC | | 4.05% to 4.55% | $100 | 3 years and 5 years |
Methodology
To create this list, Forbes Advisor analyzed 504 guaranteed investment certificates (GICs) across 43 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on nine data points that included annual percentage yield, minimum deposit requirements, (low, medium and high) customer service, compound interest schedule, available terms and availability.
The following is the weighting assigned to each category:
- APY: 50.68%
- Minimum Deposit Requirement: 13.15%
- Minimum Deposit Requirement Low: 4.67%
- Minimum Deposit Requirement Medium: 3.67%
- Minimum Deposit Requirement High: 2.67%
- Customer Service: 5.67%
- Compound Interest Schedule: 8.15%
- Available Terms: 5.67%
- Availability: 5.67%
Featured Partner Offer
1
EQ Bank Registered GIC
On EQ Bank’s Website
APY:
3.75% (3 month) to 5.15% (1 year)
Minimum Deposit Requirement:
$0
Term:
3 months to 10 years
Banks We Monitor
Our research is based on information from the following financial institutions: RBC, TD, BMO, National Bank, CIBC, Scotiabank, UNI Financial, Canadian Western Bank, Coast Capital Savings, Digital Commerce Bank, EQ Bank, First Nations Bank of Canada, Laurentian Bank, Manulife Bank, Motus Bank, Peoples Bank of Canada, Simplii Financial, Tangerine Bank, VanCity, VersaBank, HSBC, Home Bank, ICICI Bank Canada, SBI Canada Bank, CTBC Bank, Bank of China (Canada), KEB Hana Bank Canada, Shinhan Bank Canada, Meridian Credit Union, Servus Credit Union, Envision Financial, Steinbach Credit Union, Affinity Credit Union, Prospera Credit Union, Conexus Credit Union, ConnectFirst Credit Union, Access Credit Union, Assiniboine Credit Union.
More TFSA GIC Rates
| Bank/Credit Union | Updated | 1-year | 2-year | 3-year | 4-year | 5-year | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Achieva Financial | June 2024 | 5.30% | 5.25% | 4.90% | 4.80% | 4.70% | ||||||
| BMO | June 2024 | 4.75% | 4.60% | 4.25% | 4.25% | 4.25% | ||||||
| CIBC | June 2024 | 5.00% | 4.50% | 4.25% | 4.25% | 4.25% | ||||||
| Desjardins | June 2024 | 4.65% | 4.25% | 4.00% | 4.00% | 4.00% | ||||||
| EQ Bank | June 2024 | 5.50% | 5.00% | 4.75% | 4.55% | 4.45% | ||||||
| HSBC Bank Canada | June 2024 | 4.10% | 4.05% | 3.85% | 3.85% | 3.85% | ||||||
| Manulife Bank | June 2024 | 4.50% | 4.45% | 4.50% | 4.40% | 4.27% | ||||||
| National Bank of Canada | June 2024 | 4.65% | 4.30% | 4.10% | 4.00% | 4.00% | ||||||
| Oaken Financial | June 2024 | 5.35% | 5.20% | 4.80% | 4.60% | 4.50% | ||||||
| Peoples Bank of Canada | June 2024 | 5.40% | 4.75% | 4.65% | 4.65% | 4.50% | ||||||
| Royal Bank of Canada | June 2024 | 4.00% | 4.00% | 4.00% | 4.00% | 3.95% | ||||||
| Saven Financial | June 2024 | 5.45% | 5.30% | 4.90% | 4.80% | 4.70% | ||||||
| Simplii Financial | June 2024 | 5.00% | 4.35% | 4.25% | 4.25% | 4.25% | ||||||
| Tangerine Bank | June 2024 | 5.20% | 4.10% | 4.00% | 3.80% | 3.75% | ||||||
| VersaBank | June 2024 | 5.18% | 4.93% | 4.72% | 4.40% | 4.36% | ||||||
| WealthOne Bank of Canada | June 2024 | 5.20% | 5.00% | 4.80% | 4.80% | 4.70% | ||||||
| *All GIC rates are non-redeemable and paid out annually. Rates current as of March 8, 2024. | ||||||||||||
What Is a TFSA GIC?
A TFSA GIC is a guaranteed investment certificate that you can put inside a tax-free savings account. Once there, your investment, including the interest it generates, can grow tax-free up to the prescribed annual contribution limit set by the CRA each year.
What's the Difference Between a GIC and a TFSA GIC?
A GIC is a Guaranteed Investment Certificate that can be placed in any non-registered investment or savings account. A TFSA GIC is a GIC that goes into your tax-free savings account and is eligible for registered interest rate because a TFSA is a registered account, as in registered with the Government, which indicates its tax-sheltered status. On a regular GIC, you will have to pay tax on any gains, whereas any growth and contributions on a TFSA GIC are tax-free and so are the withdrawals. The one other note to keep in mind is that you can’t contribute foreign currency to registered accounts like a TFSA, so that’s certainly one drawback.
Why Invest In a TFSA GIC?
The main reason to invest in a TFSA GIC is for its tax benefits. Canadians with a tax-free savings account do no have to pay tax on their contributions (including interest) or withdrawals from the account up to the annual contribution limit. This also goes for a TFSA GIC, which will be placed inside of a TFSA as an investment. Plus, like a non-registered GIC that doesn’t have tax-sheltered status, your principal is protected, so you will always receive your initial investment back once the TFSA GIC’s term expires in addition to any interest the account has generated. The only caution one needs to exercise when investing in a TFSA GIC is knowing that they will typically receive a lower interest rate than they would get with a non-registered GIC.
What Is the Annual Contribution Limit for a TFSA?
For 2024, the annual contribution limit for a tax-free savings account is $7,000, up from $6,500 in 2023.
Where Can You Open a TFSA GIC?
A TFSA GIC can be opened online or in-branch at any bank or financial institution that offers them. You’ll then make a deposit, (sometimes the GIC requires a minimum deposit in order to invest) choose your term and then not touch your money until the point the investment matures.
Can You Withdraw Money From a TFSA GIC?
If the TFSA GIC is cashable, you can take your money out at any time without penalty. If it is non-redeemable, you won’t be able to take your money out until the end of the stated term, but you will likely receive higher interest than you would get with cashable TFSA GICs in exchange for having to wait until the maturity date to withdraw your funds.
Frequently Asked Questions (FAQs)
What investments can be held in a TFSA?
The investments that can be held in a TFSA are the same that can be held in an RRSP. They include cash, mutual funds, stocks, bonds and GICs.
What are the benefits of buying a GIC in a TFSA?
Any interest earned from a GIC in a TFSA isn’t taxable. Interest income is taxed at the same rate as regular income and holding a GIC in a TFSA means you won’t owe money to the Canada Revenue Agency (CRA).
Should I put a GIC in my TFSA?
The answer to this question depends on your financial goals. For instance, if you plan to use the money for a down payment on a house or another large purchase, a non-redeemable GIC likely isn’t the best option if you need the money before the GIC matures. However, if you’re buying a non-redeemable GIC and don’t need the money before the GIC matures, it might make financial sense. If you buy a redeemable GIC, you can get the money before the GIC matures, but you also forfeit any future interest payments.
Who has the best TFSA GIC rates in Canada?
According to our analysis, we’ve given Escalator GICs from Motusbank our top marks. This is because every year the fixed interest rate offered goes up. As a result, the longer you keep your money in the GIC, the more interest you earn. Plus, after each year, you’ll get the option to convert your money to a different type of GIC, giving you some measure of flexibility and the amount you invest is not only fully guaranteed with the interest, but its also fully insured because it’s part of a registered account. Meanwhile, the APY generated by this account is not too shabby.
How does a TFSA GIC withdrawal work?
A TFSA GIC has the same provisions as a regular GIC when it comes to making a withdrawal. Typically if a GIC is non-redeemable, you cannot take out the money until the end of the term. If a GIC is cashable or redeemable, you can take out the money, but you receive less interest than a non-redeemable GIC upon withdrawal. Registered GICs like a TFSA GIC do not typically come in a cashable or redeemable variety.
Are registered GICs taxed?
In short, no. The word “registered” is what gives registered GICs their tax-sheltered or tax-deferred–where taxes are paid only on withdrawals–status. It means they are registered with the federal government through the CRA.
Who has the highest TFSA GIC interest rate?
A high interest rate on a TFSA GIC is anything over 5%. However, a market-linked TFSA GIC may give you even more of a return, depending on the performance of the investments it is tied to.
Who offers a TFSA GIC?
TFSA GICs can be had from the majority of banks and credit unions in Canada, especially from the country’s “Big Six” banks.
Which bank has the highest TFSA GIC rate?
Saven Financial, a division of FirstOntario credit union, currently offers a 5.45% interest rate on a 1-year TFSA GIC.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circ*mstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Craig SebastianoContributor
Craig Sebastiano is a personal finance writer based in Toronto. He was previously the managing editor at Ratehub.ca and has written about credit cards, mortgages, banking, investing and investment products, retirement planning, insurance, and income taxes. Craig has written for a variety of financial publications, including MoneySense, Rates.ca, GreedyRates.ca, LowestRates.ca, Morningstar.ca, WealthRocket, Zensurance, and PolicyMe.
