Back a few years ago, I checked the rate a GIC would pay me in my online Brokerage Account. It was the same as if I bought it directly from the issuing bank or credit union. Great, I thought, and bought my GICs inside my BMO InvestorLine, CIBC Investor’s Edge and RBC Direct Investing accounts. Fast forward to January 2019 and a family member asked if he should move all of his RRSP money into a brokerage account, or leave some out to buy GICs at a bank or credit union. So I went online to check RRSP GIC rates at my brokerages and at some high paying online banks.
RATS! GICs at Online Brokerage Accounts May Pay Less Interest than GICs Bought Directly from Online Banks!
Rats! The “good days” are gone! I am losing money by buying the same GICs inside my brokerage accounts as I could buy directly by opening a RRSP account at an online bank.
A Comparison of the RRSP GIC Rates at BMO InvestorLine, CIBC Investor’s Edge, RBC Direct Investing, Oaken Financial, Tangerine and Simplii
These are the rates offered on January 30, 2019. They can change at any time so please check with them before making any purchases.
Remember to check that your GIC will be CDIC insured before buying it.
Also remember most of these places now charges a fee to “transfer out” your RRSP holdings if you want to move somewhere else. Don’t buy until you have found out what it will cost you to move it if in future the rates offered are too low.
| Place | 1 year GIC | 3 year GIC | 5 year GIC | |
| BMO InvestorLine
Minimum purchase $5000 |
2.64 | 2.9 | 3.11 | |
| CIBC Investor’s Edge
Minimum purchase $5 000 |
2.63 | 2.86 | 3.1 | |
| RBC Direct Investing
Minimum purchase $3 500 |
2.63 | 2.91 | 3.1 | |
| Oaken Financial | 3.1 | 3.35 | 3.6 | |
| Simplii | 3 | 3.3 | 3.4 | |
| Tangerine | 3 | 3.15 | 3.25 |
You can see that I am losing up to 0.5% by buying a GIC inside my brokerage RRSP account. What a pain.I may have to move some money around. Rats.
Related Reading
- How to Buy a GIC Inside a BMO InvestorLine Brokerage Account
- How to Buy a GIC Inside a CIBC Investor’s Edge Brokerage Account
- How to Buy a GIC Inside a RBC Direct Investing Brokerage Account
- How to Buy a GIC at Oaken
Join In
Did you notice that you’re getting a reduced rate on your GICs in your brokerage account? Did you give up and move some of your money out to get a better rate? Please share your experiences with a comment.