Best EQ Bank GIC Rates in Canada
Minimum and Maximum Deposit AmountA low minimum deposit amount makes opening an EQ Bank GIC possible for just about everyone. All you need is $100 to get started. You may hold up to $500,000 in your EQ Bank GICs, excluding the interest you earn. In addition, you may hold as many as 20 GICs at the same time.
Maturity of EQ Bank GICsWhen your EQ Bank GIC reaches its maturity date, the proceeds are transferred to your EQ Bank Savings Plus Account automatically. This is the same account that you use to fund the GIC in the first place. The bank notifies you of the maturity date via email or SMS.
Cancelling Your GICOnce you purchase an EQ Bank GIC, you get until the end of the next business day to cancel the GIC online. After the cancellation period expires, your funds remain locked-in until the GICs maturity date. You cannot redeem your GIC before its maturity date.
Mobile DashboardYou may track the progress of your GIC at any time from practically anywhere by using the EQ Bank mobile banking app that is available for Android and iOS. Other than monitoring your accounts, you may use the app to pay bills, initiate fund transfers, and deposit cheques.
Deposit InsuranceEquitable Bank is a member of the Canada Deposit Insurance Corporation (CDIC). As a result, the money you deposit at EQ Bank is eligible for CDIC deposit insurance up to a maximum amount of $100,000 per insured category.
Customer ServiceIf you need any kind of GIC-related information or assistance, you may contact an EQ bank representative via phone, email, or chat. The bank provides live help from 8:00 am to midnight, Eastern Time, seven days a week.
Opening an EQ Bank GICYou need to have an active EQ Bank Savings Plus Account through which you may fund your EQ Bank high-interest GIC. Unfortunately, the bank does not provide the Savings Plus Account in Quebec. To open an EQ Bank savings account:
- You should be a resident of Canada.
- You should be over 18 years or 19 years of age, depending on the province in which you reside.
- You should have a Social Insurance Number.
The appeal of EQ Bank lies in the high-interest rates offered on Savings Plus Accounts and Guaranteed Investment Certificates (GICs). The savings account has no monthly fees, no minimum balances, and the number of day-to-day transactions is unlimited. EQ Bank does not provide personal cheques or debit cards to its customers. Instead, customers can move their money between their EQ Bank accounts and linked accounts. Customers can also send money through EQ Connections and Interac e-Transfers®.
Popular GIC Terms
EQ Bank GICs come with various terms ranging from 3 months to 5 years. Popular terms are 1-year, 2-year, 3-year, 4-year, and 5-year term. The most recommended is 1-year GIC. The interest rate is currently set at 2.40 percent. The 5-year GIC is priced at 2.60 percent. It provides the highest rates and allows an investor to maximize returns. In all cases, interest is accrued for the entire term and no interest is earned on the maturity date.
Why Invest in GIC
A GIC is a safe and secure investment with minimal risk. A GIC deposit with EQ Bank is eligible for Canada Deposit Insurance Corporation (CDIC) deposit insurance coverage. GICs deposits are protected up to $100,000. The money deposited into an EQ Bank GIC is guaranteed to provide a specific rate of return. Since the rate is fixed, an investor will not have to worry about price fluctuations every time interest rates change.
The terms are flexible. An investor can choose a term based on particular goals. GICs are a good investment option for any age group. People can buy GICs to put in tax-sheltered plans such as RRSPs, TFSAs, and RESPs. The flexibility makes them an ideal product for people with different financial goals at various stages of their lives. But GICs are non-redeemable. An investor can only cancel a purchase online if it is within one business day after the effective purchase date.
A good thing about EQ Bank GICs is the low minimum deposit. An investor can buy a GIC through the bank with as little as $100. This is not possible with most financial institutions. The low minimum deposit is convenient for many people.
Returns on Savings
EQ Bank GICs are popular because of their high returns. All an investor has to do is select a term, deposit funds, and watch it grow. On the maturity date, the principal and any interest earned will be deposited in an investor’s account.
If an investor does not need the money when a GIC matures, it can be reinvested in another GIC. With the fixed-rate, an investor will always know the amount of money to expect. GIC returns are higher than other fixed-income choices such as government bonds. They are a good choice for people who are looking for guaranteed returns with no fees.
Through GIC laddering an investor can get some regular income. It is usually recommended for people who need frequent access to funds. This strategy involves buying GICs that mature at different times. If the money is not needed, as each GIC matures, the money can be reinvested in a new GIC. This creates a cycle of GICs that mature regularly. The strategy will allow a client to invest more money. It is a good and smart way to maximize returns.
EQ Bank is a great option for its savings account and GIC interest rates. With the Savings Plus Account, there are no monthly fees, transaction limits, and minimum balances. The bank offers some of the highest interest rates around. EQ Bank GICs are ideal for anyone looking for a guaranteed, low-risk investment. They also provide a passive regular income source and can be used to save for particular goals. GICs can bring security and growth to any investment portfolio. With all the good the bank provides, there are some minor downsides. Lack of a debit card may make it a bit difficult to access funds from the bank. EQ Bank GICs do not also offer enough liquidity in the event of an emergency.