Savers in late January are getting a familiar message from the guaranteed investment certificate rate boards: Not much has changed, although one notable move stands out.
EQ Bank’s best five-year GIC rate was the leading nationally available offer last week, but as of Wednesday, it has been quietly trimmed to 3.75 per cent from 3.85 per cent. That lowers the top five-year GIC rate available nationwide to 3.80 per cent from a number of providers.
Meanwhile, the best high-interest savings offers continue to cluster in short promotional windows, forcing many households to decide whether the extra return is worth the hassle of hopping from one deal to the next.
As of Wednesday, the leading promotional savings rate for new clients remains at 4.65 per cent from Bank of Nova Scotia’s Momentum Plus account for a three-month period.
This week’s highest savings account and guaranteed investment certificate rates
Royal Bank of Canada and Canadian Imperial Bank of Commerce follow at 4.60 per cent for three months. After those introductory periods, the rates drop considerably, a gap that has left many savers seeking alternatives.
Saven Financial offers a standard savings account rate of 2.85 per cent, the highest available nationally, ahead of Oaken Financial at 2.80 per cent. For savers, it provides a stronger continuing return without the need to move funds once a promotion expires.
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.
WealthONE Bank is a familiar name on the leaderboards, routinely offering some of Canada’s best GIC rates. As of Wednesday, it pays 3.65 per cent for one year and 3.75 per cent for two years, while Achieva leads the three-year term at 3.80 per cent. Five-year GICs remain tightly contested, with eight providers tied for the top rate of 3.80 per cent.
Banks frequently offer existing clients targeted promotional savings rates on new deposits that beat what’s posted publicly. 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 more than 50 Canadian financial institutions.
Jimmy Nguyen is a writer and content developer at WOWA.ca, a Canadian personal finance platform.
