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HISA or GIC: which is right for you?

Both a GIC and a HISA are low-risk, deposit-insured ways to grow your savings, but they suit different needs. The simple rule: use a HISA for money you may need soon, and a GIC for money you can lock away for a higher, guaranteed rate.

Want the full breakdown, including a side-by-side table and a worked example? Read our complete GIC vs HISA guide for Canadians.

Where the best rates are: online banks vs big banks

The highest savings rates in Canada almost always come from online banks and credit unions rather than the Big Five branch banks. Institutions like EQ Bank, Oaken Financial, Achieva Financial, Tangerine, and Simplii have far lower overhead than a national branch network, and they pass much of that saving on as higher interest.

The trade-off is mostly familiarity: online banks have no branches, so everything is done through an app or website. Your deposits are still protected the same way, through CDIC at member banks or a provincial insurer at credit unions, so a higher rate at an online bank does not mean more risk. For a Big Five comparison point, see CIBC’s current GIC rates.

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How savings rates work in Canada

Savings and GIC rates move with the Bank of Canada’s policy interest rate. When the central bank raises its rate, banks tend to raise the rates they pay on deposits; when it cuts, deposit rates usually fall. That is why a HISA rate can change at any time, while a GIC lets you lock a rate in for the full term regardless of what happens next.

This is the key reason timing matters. In a falling-rate environment, locking a longer GIC can protect your return. In a rising-rate environment, a HISA, or a short GIC ladder, lets you capture increases as they happen. Neither product puts your principal at market risk the way stocks or bonds can, which is what makes them the foundation of most savers’ cash plans.

Frequently asked questions