As the financial landscape continues to evolve, the rates for Guaranteed Investment Certificates (GICs) are witnessing notable adjustments, with Achieva emerging as a key player. Heading into Wednesday, the competition for the best GIC rates remains fierce, with only a narrow margin separating the top contenders. The difference between the highest and second-best posted rates is currently a mere five basis points, indicating that even slight changes can shift the rankings dramatically.
Achieva’s Ascendancy in GIC Rates
Since late January, Achieva has made significant strides in its GIC offerings. On January 21, the institution’s two-year GIC rate was positioned at 3.55 per cent, but as of February 11, it has climbed to 3.80 per cent, securing its spot at the forefront of the two-year GIC rate table. Similarly, Achieva has improved its one-year rate from 3.40 per cent to 3.60 per cent, now holding the second-best rate available nationally.
In addition to these advancements, Achieva also boasts the highest five-year GIC rate at 3.85 per cent. Previously aligned with other providers at 3.80 per cent, it has now separated itself from a cluster of institutions, including WealthONE, MCAN, Hubert, MAXA, Outlook, Oaken, and Saven, which remain at that lower rate.
Comparing GIC Rates to Mortgage Rates
To provide a clearer picture of the current financial landscape, it’s important to compare GIC returns with mortgage rates. The leading three-year GIC rate stands at 3.70 per cent, which is notably higher than the best three-year fixed mortgage rate of 3.54 per cent, creating a margin of 16 basis points. The five-year GIC rate of 3.85 per cent also outstrips the best five-year fixed mortgage rate, which is currently 3.69 per cent, maintaining that same 16-basis-point advantage.
Savings Accounts and Promotional Offers
In the realm of savings accounts, promotional offers are gaining traction. The Bank of Nova Scotia is currently providing a competitive promotional savings rate of 4.65 per cent for new clients over an introductory period of three months. Close behind are the Royal Bank of Canada and the Canadian Imperial Bank of Commerce, each offering 4.60 per cent for the same duration. However, these rates are notably temporary, a factor that continues to drive many savers to switch between promotional accounts or seek out more stable options.
For those who prioritise consistent returns without the hassle of frequent changes, Saven leads in standard savings accounts with a rate of 2.85 per cent, narrowly ahead of Oaken at 2.80 per cent. Fintech platforms are also innovating in this space, with Neo Financial offering tiered returns that reach up to 3.0 per cent for balances exceeding £20,000, while KOHO provides up to 3.5 per cent through its paid plan.
Hidden Opportunities in Targeted Promotions
While posted rates serve as a helpful benchmark for savers, they do not always reflect the complete picture. Many banks extend targeted promotions to existing customers on new deposits, often surpassing the publicly advertised rates. Savvy investors who remain vigilant for these tailored offers and compare them with other rates can significantly enhance their cash returns.
Interest rate data is provided by WOWA.ca, a platform that aggregates and shares mortgage, savings, and GIC rates from over 50 Canadian financial institutions.
Why it Matters
The fluctuation in GIC rates and the competitive nature of savings offers are crucial for consumers navigating their financial futures. With the potential for higher returns on GICs outpacing traditional mortgage rates, savers have a unique opportunity to capitalise on these favourable conditions. As institutions like Achieva continue to lead the charge, the importance of staying informed about shifting rates and available promotions cannot be overstated. In a world where financial decisions can significantly impact long-term wealth, understanding these dynamics is key to making informed choices.
