Non-redeemable GIC rates in Canada
The best non-redeemable GIC rate at each term from one to five years, and the premium each issuer pays over its own cashable GIC for locking the money in.
What is a non-redeemable GIC?
A non-redeemable GIC is a guaranteed investment certificate that cannot be cashed before it matures, and it pays a higher rate than a cashable GIC of the same term in exchange. The rate is fixed for the whole term.
Every rate in the GIC rates tables is a non-redeemable rate, so the national GIC rates table compares this product across all 28 issuers tracked. The cashable alternative, with each issuer's two rates paired, is on cashable GIC rates.
Can you break a non-redeemable GIC?
At most issuers, no, at any price. The deposit and its interest stay locked until the maturity date.
The exceptions issuers commonly state, such as the death of the holder or financial hardship at the issuer's discretion, are each issuer's own terms and are set out on its own rates page or in its GIC agreement. There is no non-redeemable GIC penalty to pay, because there is no early redemption to charge for. The cost of the product is the lost access to the money until it matures.
Each issuer's own rates page: RBC, TD, BMO, Scotiabank, CIBC, EQ Bank, Tangerine, WealthONE, Oaken, Achieva, Meridian, Simplii, National Bank, MCAN, Beem, Saven, DUCA, Alterna, Libro, Tandia, Northern, Kindred, FirstOntario, ATB, Servus, Vancity, Coast Capital and Tru.
Interest on a one-year term, paid at maturity.
Redeemable vs non-redeemable GIC
18 issuers post both a non-redeemable and a cashable or redeemable 1-year GIC. At the same issuer, the premium for locking in runs from 35 to 155 basis points, and the median issuer pays 93 basis points more for the non-redeemable GIC. Across issuers, the best non-redeemable 1-year rate, 3.90% at MCAN Wealth, earns $262.50 more on $25,000 over a year than the best cashable 1-year rate, 2.85% at Meridian Credit Union. Each issuer's own label for its cashable product is on the cashable GIC page.
| Issuer | Non-redeemable 1-year | Cashable 1-year | Premium for locking in |
|---|---|---|---|
| Oaken FinancialCDIC | 3.80% | 2.25% | 155 bp |
| BMOCDIC | 3.00% | 1.50% | 150 bp |
| Kindred Credit UnionFSRA · compounding not stated | 3.10% | 2.05% | 105 bp |
| Tru Cooperative BankCDIC | 3.36% | 2.31% | 105 bp |
| Alterna SavingsFSRA | 2.65% | 1.65% | 100 bp |
| ATB FinancialGovernment of Alberta · compounding not stated | 3.00% | 2.00% | 100 bp |
| Beem Credit UnionCUDIC · compounding not stated | 3.30% | 2.30% | 100 bp |
| Tandia Financial Credit UnionFSRA | 2.65% | 1.65% | 100 bp |
| Coast Capital SavingsCDIC | 3.10% | 2.15% | 95 bp |
| Libro Credit UnionFSRA | 3.15% | 2.25% | 90 bp |
| Northern Credit UnionFSRA · compounding not stated | 3.20% | 2.40% | 80 bp |
| VancityCUDIC | 3.10% | 2.35% | 75 bp |
| FirstOntario Credit UnionFSRA · compounding not stated | 3.35% | 2.65% | 70 bp |
| Servus Credit UnionCUDGC | 2.70% | 2.00% | 70 bp |
| ScotiabankCDIC | 2.45% | 1.90% | 55 bp |
| RBC Royal BankCDIC | 2.45% | 1.95% | 50 bp |
| CIBCCDIC | 2.45% | 2.00% | 45 bp |
| Meridian Credit UnionFSRA · compounding not stated | 3.20% | 2.85% | 35 bp |
Best non-redeemable GIC rates in Canada
WealthONE Bank of Canada posts the highest 5-year non-redeemable rate at 4.50%, and MCAN Wealth the highest 1-year at 3.90%. Every issuer's rate at each term is on the 1-year, 2-year, 3-year, 4-year and 5-year pages, and every term for every issuer on the GIC rates hub.
Non-redeemable GIC interest options
9 issuers post a separate rate for a non-redeemable GIC that pays its interest monthly, and it sits below the compounding rate for the same term: RBC Royal Bank posts 2.45% compounding against 2.325% paid monthly for 1 year. Across the 9, the monthly-pay rate is between 3.7 and 25 basis points lower.
Meridian Credit Union, Beem Credit Union, Northern Credit Union, Kindred Credit Union, FirstOntario Credit Union and ATB Financial state no compounding basis for their rates, so those figures cannot be read as annual compounding rates. The GIC calculator compounds annually by default, the basis of the compounding rates posted by the other issuers.
| Issuer | Compounding | Paid monthly | Lower by |
|---|---|---|---|
| RBC Royal Bank1 year | 2.45% | 2.325% | 12.5 bp |
| BMO1 year – under 18 months | 3.00% | 2.90% | 10 bp |
| Scotiabank1 year | 2.45% | 2.35% | 10 bp |
| Oaken Financial1 year | 3.80% | 3.70% | 10 bp |
| Simplii Financial1 year | 2.90% | 2.863% | 3.7 bp |
| ATB Financial1 year · compounding not stated | 3.00% | 2.75% | 25 bp |
| Servus Credit Union1 year | 2.70% | 2.575% | 12.5 bp |
| Vancity1 year | 3.10% | 3.00% | 10 bp |
| Tru Cooperative Bank1 year | 3.36% | 3.235% | 12.5 bp |
Common questions about non-redeemable GICs
Is a non-redeemable GIC covered by deposit insurance?
Yes, on the same footing as any other eligible deposit at the institution. 14 of the issuers here are covered by CDIC: $100,000 per depositor, per member institution, per insured category. 1 of the issuers here is covered by DGCM: all deposits guaranteed without limit. 9 of the issuers here are covered by FSRA: eligible deposits in registered accounts are covered without limit; non-registered deposits are covered to $250,000. 2 of the issuers here are covered by CUDIC: all deposits guaranteed without limit. 1 of the issuers here is covered by the Government of Alberta: deposits with ATB Financial carry a provincial guarantee with no dollar limit. 1 of the issuers here is covered by CUDGC: all deposits at an Alberta credit union are guaranteed without limit. Coverage limits change on a scale of years rather than months, so confirm the current figure with the regulator before relying on one.
What does non-redeemable mean for a TFSA or RRSP GIC?
The same lock. A non-redeemable GIC held in a TFSA or an RRSP cannot be cashed before it matures, as with one held outside a plan. The plan changes how the interest is taxed and leaves the term alone. The issuers that hold GICs in each plan are listed on the TFSA GIC and RRSP GIC pages.
What is the difference between non-redeemable and non-cashable?
They are two names for the same product: a GIC that cannot be cashed before it matures. TD Bank uses the word non-cashable and titles its rates page for these GICs non-cashable GIC rates.
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