Rate moves have been limited heading into Wednesday, but competition at the top remains tight. The spread between the best and next-best posted rates is typically just five basis points, meaning the provider offering the leading rate can change with a slight cut or bump.
One of the clearer shifts in the best GIC rates since late January has come from Achieva. On Jan. 21, its two-year GIC rate sat at 3.55 per cent; as of Feb. 11, it has climbed to 3.80 per cent, putting it at the top of the two-year table.
Achieva’s one-year rate has also moved up from 3.40 per cent on Jan. 21 to 3.60 per cent, which is now the second-best nationally available posted rate.
Achieva also posts the top five-year GIC rate at 3.85 per cent. It was part of the 3.80 per cent pack until recently, but now sits a notch above a large group still clustered at 3.80 per cent, including WealthONE, MCAN, Hubert, MAXA, Outlook, Oaken and Saven.
To put those returns in perspective, the top three-year GIC of 3.70 per cent is better than the best mortgage rate of 3.54 per cent for three-year fixed, a spread of 16 basis points. On five years, the best GIC rate is 3.85 per cent versus the best five-year fixed mortgage rate of 3.69 per cent. That’s also a 16-basis-point difference.
Savings accounts see the best promotional savings rate offer for new clients at 4.65 per cent from the Bank of Nova Scotia for three months, with Royal Bank of Canada and Canadian Imperial Bank of Commerce at 4.60 per cent for three months. The catch is unchanged: Once the introductory period ends, rates fall back sharply, which continues to push savers to either hop between promos or find a more competitive everyday account.
For those who prefer a steady rate without switching, Saven continues to lead on standard savings at 2.85 per cent, just ahead of Oaken at 2.80 per cent.
Some fintech platforms offer competitive savings rates. Neo Financial offers tiered returns that reach 3.0 per cent on balances above $20,000, and KOHO offers up to 3.5 per cent through its paid plan.
While posted rates are a useful benchmark, they’re not always the full picture. Banks often send targeted promotions to existing clients on new deposits, sometimes beating the publicly advertised rate. Keeping an eye out for these targeted offers and comparing them with rates elsewhere remain a simple way to improve returns on your cash.
Interest rates are provided by WOWA.ca, which gathers, aggregates and freely disseminates data on mortgage rates, savings accounts, and GIC rates from 50+ Canadian financial institutions.
Jimmy Nguyen is a writer and content developer at WOWA.ca, a Canadian personal finance platform.
