Founded in 2016 as the personal banking arm of Equitable Bank, EQ Bank is Canada’s first digital-only bank. Like all digital banks, it gives Canadians a solid no-fee banking option, but its GIC rates are also highly competitive in the current high interest rate environment. While there are some banks and credit unions out there that offer slightly higher GIC rates, but EQ Bank is at least near the top. Certainly it offers higher GIC rates than you can get from the “Big Six” Banks, so let’s take a look at the rest of the details of EQ Bank’s GIC offering and which one is the best among them.
The following are the best EQ Bank GIC rates as of May 3, 2024:
To create this list, Forbes Advisor Canada 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:
GIC with higher APYs rose to the top of the list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Investments with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the GIC must be nationally available.
*All GICs are non-redeemable. Rates current as of May 3. 2024.
*All GICs are non-redeemable. Rates current as of May 3, 2024.
EQ Bank offers non-registered and registered GICs. The registered GICs can be placed in a TFSA, FHSA or RSP account. The RSP and FHSA GICs aren’t available in Quebec. On all GICs, a single individual can open up to 20 GICs with a per GIC limit of $100,000 and an aggregate limit of $500,000. All EQ Bank GICs, whether registered or non-registered, are non-redeemable, so it can’t be redeemed or cashed-in until maturity at the end of the term.
All EQ Bank GICs are insured by the CDIC up to $100,000. Interest can either be paid per year or at maturity for GICs of over a year, not including the 15-month and 27-month terms.
On those 15-month and 27-month terms, interest is calculated on a per year basis and paid at maturity. Interest is calculated daily and paid at maturity on GICs that are less than a year and GICs that feature a one-year term calculate interest on an annual basis and are paid at maturity as well.
A $1,000 investment on a one-year term with 5.50% interest will earn you $55 on your initial investment at the end of the term. A five-year term at 4.45% with interest calculated daily on the same investment would earn you $249.18. The same investment term with interest calculated annually on the same investment amount would earn you slightly less at $243.20
The equation for calculating annual interest is the principal amount multiplied by the GIC interest rate, which is why $1,000 X 5.50% = $1,055. This is the amount you would receive once the one-year term concludes. If it were a two-year term, $1,055 X 5.50% = $1,113.03.
EQ Bank’s GIC rates are right in line with where GIC interest rates are right now in Canada and are even slightly higher than what the “Big Six” Banks are currently offering. If you are looking for the best GIC rates available, make sure you take time to compare against many different banks and credit unions whether they have physical branches or are online only.
Featured Products Offer
1
EQ Bank TFSA Savings Account
APY
3%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
2
EQ Bank Personal Account
APY
4.00%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
3
EQ Bank Joint Account
APY
4.0%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
EQ Bank is the digital arm of Equitable Bank. It was the first digital bank in Canada and now serves 578,000 clients across the country.
It offers a personal account (a chequing and savings hybrid account), a joint account, a U.S. dollar account, an RSP account, a business account, a TFSA, a FHSA and GICs.
It has been named the Top Schedule I Bank in Canada on Forbes’ List of ‘Best Banks in the World’ three years in a row (2021, 2022 and 2023).
With a low minimum deposit of $100 and high interest rates topping out at 5.35%, a GIC at EQ Bank is worth it for existing customers. With so many terms to choose from, you’ll have a lot of flexibility so you’ll only have to tie-up your money in a GIC for a length of time that fits your needs and financial situation. This is especially important because no GICs from EQ bank allow you to withdraw the money in them prior to maturity. You also need to be an existing customer to open a GIC with EQ Bank because you’ll need a registered or non-registered account at EQ Bank to even open a GIC there.
The current range of GIC rates at EQ Bank go from 3.75% to 5.35%. The interest rate of 3.75% is for its shortest term GIC at 3-months and 5.35% can be found with the one-year GIC. Terms go all the way up to 10 years, which gives you 3.80%. All rates can be found in the chart above.
While better rates are out there, EQ Bank’s GIC rates are on the higher end, especially when compared to the “Big Six” banks. The terms are also flexible and the minimum deposit is low at $100 so anyone can afford to invest in a GIC at EQ.
Yes. EQ Bank GIC’s are insured up to $100,000 in the unlikely event EQ Bank goes bankrupt.
GICs are a safe way to maximize savings because they are CDIC insured up to $100,000 and often have higher interest rates than other interest-bearing deposit accounts. Also, interest rates on GICs are fixed, meaning you’ll still earn at a higher rate even if market interest rates drop. Plus your principal is guaranteed. Assessing both the pros and the cons, depending on your GIC term length, your money could be inaccessible long term without paying costly penalties. There’s also the chance that interest rates rise while you’re locked into a lower rate.
Yes. They are insured up to $100,000 by the CDIC when you’re dealing with a bank and by the Financial Services Regulatory Authority for the same amount with a credit union.
You can also open a high-interest savings account, a simple registered account like an RRSP, TFSA or FHSA (if you’re planning to buy a home) or you can invest in stocks, mutual funds or ETFs.
A GIC ladder strategy is the process of opening several GIC accounts with varying maturity dates. Using a GIC ladder allows you to take advantage of competitive interest rates while maintaining some flexibility with your funds—which may help you avoid early withdrawal penalties if you need to access your money sooner than expected.
