The Money Reporter surveys deposit-taking institutions across Canada every month looking for the best interest rates available in the country. The survey includes best GIC (guaranteed investment certificates) rates, best RRSP rates, best Term Deposit rates and best Money Market rates. This month you’ll get the biggest bang for your five-year GIC buck at Canadian Direct.
Among the financial institutions that offer the best interest rates on guaranteed investment certificates, or GICs, these days is Canadian Direct Financial. Canadian Direct is part of Canadian Western Bank (TSX─CWB), the largest Schedule 1 bank headquartered in Western Canada. The bank offers a full range of business and personal banking services through 41 branches. It has more than $20 billion in assets, and it trades on the Toronto Stock Exchange.
Canadian Western started Canadian Direct in 2008. This division of the bank doesn’t have any branches. Instead, you bank with it through the internet or by telephone. That way it can provide low or no service fees and competitive rates.
Best five-year GIC interest rate in Canada
Among the financial institutions we surveyed, Canadian Direct currently offers the best interest rate on a five-year annual GIC — 2.56 per cent. It also offers a competitive rate on its three-year GIC, which yields 2.25 per cent. That’s 10-basis points below the 2.35 per cent offered by Peoples Trust. Though its rates for other maturities do not make the top three financial institutions in our survey, they’re still attractive. On a one-year GIC, the divisions offers 1.80 per cent; on a two-year GIC, 2.10 per cent; and on a four-year GIC, 2.30 per cent.
Canadian Direct also offers 1.50 per cent on its KeyRate Savings Account and 1.80 per cent on its KeyReach TFSA Savings Account on balances of more than $50.
As part of Canadian Western Bank, the division’s chequing, savings and investments are eligible for deposit insurance through Canada Deposit Insurance Corporation. Eligible deposits at each member institution are covered up to a maximum of $100,000.
You can contact Canadian Direct Financial through its website, canadiandirectfinancial.com, or by phoning it at 1-877-441-2249. Currently, its products are not offered to residents of Quebec.
Money Reporter, MPL Communications Inc.
133 Richmond St. W., Toronto, On, M5H 3M8, 1-800-804-8846