The GIC also known as the Guaranteed Investment Certificate is best known in Canada for a guaranteed rate of return under a specific time span. Candidates will be able to see the interest rates on GIC either monthly, biannually or annually. Many people want to know about the Best GIC Rates In Canada 2024. This depends upon the time of maturity or dates pre set up with the consent of the applicant by their service providers. GIC is associated with two types of interest rates that are either simple interest or compound interest. Meanwhile the simple interest is paid on the initial principal amount only. For example in case you invest $50K for let’s say two years, with 1.5% interest rates selected by you. In that case related to the interest based on calculations you are eligible for an annual return rate of $1,500.
Meanwhile the compound interest is paid in a slightly different manner. In case compound interest is applied to your GIC, then the return is calculated back with the principle as well as the interest earned from the previous year collectively. For example we use the same GIC rates mentioned above in reference with the compound interest, in that case the annual return after calculating the compound interest will be $1,511.25. Which means the compound interest gives an extra profit of $11.25 on top of the previous return. There are various Type Of GIC In Canada 2024 categorized as Cashable, registered, non – registered, redeemable, market linked, foreign currency, long/ short term, etc.
Best GIC Rates In Canada 2024
The Canadian Deposit Insurance Corporation (CDIC) ensures that all eligible deposit accounts are backed for complete safety under the government of Canada. This insurance includes savings account, chequing and GIC’s made with their bank members. These back ups are automatic and applicants need not apply separately or pay additional charges for the services provided by the CDIC. The CDIC helps its applicants with a cover of $100,000 as insurance in case of a financial fraud or bankruptcy. Many Banks provide you with Best GIC Rates In Canada 2024. All the big banks of Canada including a total of 80 banks in Canada have their coverage with the CDIC insurance. Moreover, you should check GST & HST Refund Schedule 2024 as per which payments are issued on regular intervals.
Best Guaranteed Investment Certificate Rates 2024
| About | Best GIC Rates in Canada |
| Country | Canada |
| Authority | Government of Canada |
| Category | Finance |
| Full form of GIC | Guaranteed Investment Certificate |
| Types of GIC | Redeemable, cashable, market linked etc |
| Types of Interest on GIC | Simple interest/ compound interest |
| Interest time period – GIC in Canada | Per month, biannually, annually |
| Best Guaranteed Investment Certificate Rates 2024 | 4.15% |
Type Of GIC In Canada 2024
Following are the Type Of GIC In Canada 2024 which you can apply for.
- The cashable GIC is designed for people who are not willing to invest their money in the long term. In this case the applicant is allowed to turn their money back within a 30 to 90 days of period as Cashable GIC offers a one year period return to its applicants.
- Registered and non registered GICs are slightly different, the registered GIC exists for registered investment accounts only, such as the TFSA, RRSP, etc. This means the applicant is not liable to pay any taxes on the interest they receive. Meanwhile a non-registered GIC is completely opposite of it.
- Similar to the Cashable GIC the redeemable GIC allows applicants to take out their money earlier than the regular time period. Meanwhile non – redeemable GIC does not allow applicants to take out their money earlier or else they have to pay a penalty fee.
- Market linked GIC can be opted by people who are looking forward to having a higher return as this type of GIC is also linked to some stock market index.
- The foreign currency GIC helps people invest into foreign currencies while taking good returns.
How To Calculate The GIC Interest Rate After Maturity?
- The GIC returns come with two types of interest, that is, simple interest and compound interest.
- Simple interest is calculated using the interest percentage and the principal amount after the time period of investment.
- Meanwhile the compound interest is calculated by using the previous years interest and principal collectively, which helps calculate the upcoming profit.
GIC Interest Rates In Canada For 2024
| Year | GIC Interest Rates In Canada For 2024 |
| 1st year | 4.15% |
| 2nd year | 4.00% |
| 3rd year | 4.00% |
| 4th year | 3.90% |
| 5th year | 4.00% |
Disclaimer – Best GIC Rates in Canada
In this article we properly discussed what is the concept of GICs in Canada. We also elaborated the type of GICs that are available in Canada including what are the current interest rates in Canada. We also mentioned how you can calculate your profit according to the interest rate and time period of your investment. For more related information investors can contact their banks to seek proper information and gather other information related to the investment etc.
FAQs On Best GIC Rates In Canada 2024
The highest GIC rate for investors in Canada starts from 4.15% as of 2024.
The GIC rate according to a five year investment in 2024 for Canada starts from 4%.
