Savers Roundup September 2021: Dizzying GIC rate changes; is a savings account the best place for your savings?

The top GIC rate changes more frequently than you might think

Canadian Tire Bank currently tops our GIC comparison chart for the 5-year rate at 2.23%.

Did you know? Canadian Tire Bank has changed its 5-year GIC rate a total of 54 times over the past year; that’s on average more than once per week. No other financial institution comes close to that sort of frequency. In fact, the average financial institution on our chart changes its 5-year rate less than 3 times per year. Don’t be surprised if, by the time you’ve transferred your money over, Canadian Tire Bank has already changed its 5-year GIC rate (for better or for worse)!

Its 1- through 4-year GIC rates are far from competitive, though. Oaken Financial has the top 4-year rate at 2.00%, EQ Bank has the top 3-year and 2-year rates at 1.80% and 1.60%, and Peoples Trust and Achieva Financial share the top 1-year rate at 1.45%.

Do you use a GIC broker?

GIC brokers can often beat the best rates on our chart. The broker rates might come with additional stipulations, such as a higher minimum deposit. But, GIC rates are by nature guaranteed for the term, so it might be more worth it to rate chase with GICs than with savings accounts. Join the discussion if you are interested in having the High Interest Savings website track broker rates more officially!

Savings accounts rates aren’t a-changin’

There hasn’t been much change on our savings account comparison chart. Alterna Bank decreased its regular savings account and TFSA interest rate from 1.00% to 0.90%, making it the first rate on our chart to drop below 1.00%.

Last week, The Bank of Canada decided to keep its key interest rate unchanged, and doesn’t expect to increase it before the second half of 2022.

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