Bonds held steady during the week before Dec. 17, resulting in little change for guaranteed investment certificate (GIC) rates. The Bank of Canada resolved to hold its policy rate at 2.25 per cent, which kept high-interest savings accounts rates largely unchanged.
Scotiabank has the highest promotional rate of 4.65 per cent for the first three months, which drops to 0.40 per cent after the promotional period ends. Steinbach, BMO, RBC, and CIBC follow with a promotional rate of 4.60 per cent. Steinbach and BMO offer it for the first four months, while RBC and CIBC offer it for only three months.
Saven continues to lead with the best standard savings rate at 2.85 per cent. Next comes Oaken, which has a 2.80 per cent standard savings rate.
Fintech companies also offer relatively high ongoing savings rates, but they usually come with considerable conditions. For example, Neo has a savings rate of up to 3.00 per cent when the deposit balance exceeds $20,000. KOHO offers up to 3.50 per cent on savings, but a paid plan is required.
Bank of Canada’s interest rate hold may bring homebuyers and sellers off the sidelines
GIC rates have remained the same or increased slightly compared to last week. GIC rate leaders vary depending on the term, but many names are consistent across the terms. There are two best-rate providers for a one-year GIC at 3.65 per cent, while there is only one best-rate provider for a five-year GIC at 3.85 per cent.
With the holiday season kicking off next week, significant changes to savings or GIC rates are unlikely, however, adjustments may still be made based on the bond market and institutional financing demand.
The holidays are an opportunity for savers to reassess their investment strategies, consider how different assets perform over the long term, and adjust their investment portfolio allocation.
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.
Kirill Sukhikh is a writer and financial content developer at WOWA.ca, a Canadian personal finance platform.
