EQ Bank offers a range of non-redeemable Guaranteed Investment Certificates (GICs) with rates that vary by term length. As of October 2026, rates range from 2.35% for a 6-year term to 4.30% for a 5-year term. These GICs are a secure investment option for Canadians looking for a guaranteed return, with principal and interest protected by Canada Deposit Insurance Corporation (CDIC) coverage. Understanding the specific rules, limits, and provincial availability is crucial for making an informed investment decision.
Current EQ Bank GIC Rates and Terms
EQ Bank provides a spectrum of GIC terms, from short three-month options to long ten-year commitments. The specific interest rate you receive is fixed for the entire term and is determined by the length of the GIC you select. As of October 2026, the published rates show that longer terms generally, but not always, command higher rates. For example, a 5-year GIC offers a rate of 4.30%, while a 6-year GIC has a lower rate of 2.35%. It is important to review the current rates directly on the EQ Bank website before investing, as they are subject to change at any time without prior notice. The bank offers terms at various intervals including 3 months, 6 months, 1 year, 15 months, 2 years, 27 months, 3 years, 4 years, 5 years, 6 years, 7 years, and 10 years.
Specific rates available as of October 2026 illustrate the relationship between term length and the offered annual percentage yield. For a three-month term, the rate is 2.55%, while a six-month term offers 2.80%. The one-year non-registered GIC rate is 3.70%, and the 15-month term has a rate of 4.10%. The five-year term at 4.30% represents the peak of the rate curve for that period, with longer terms like six, seven, and ten years offering lower rates, such as 2.35% for six years. These rates apply to both non-registered and registered GICs, meaning a TFSA GIC for five years would also earn 4.30% tax-free.
Types of GICs and Account Registration
EQ Bank offers GICs in both non-registered and registered formats, allowing for flexibility in tax planning. A non-registered GIC is a standard investment where interest income is taxable in the year it is earned. Registered GICs are held within tax-advantaged government-registered plans, specifically Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), and First Home Savings Accounts (FHSAs). Interest earned within a TFSA or FHSA GIC is tax-free, while growth within an RRSP GIC is tax-deferred until withdrawal. It is critical to be aware of provincial availability, as residents of Quebec cannot purchase RRSP GICs, FHSA GICs, or Business GICs from EQ Bank. The bank does not offer joint GICs. Each GIC must be purchased by and for an individual account holder. To purchase a registered GIC, you must first open the corresponding registered savings account with EQ Bank, such as an active TFSA, RSP Plan, or FHSA, and the funds are drawn from the balance in that account.
EQ Bank also offers Business GICs for commercial customers, which are separate from personal investment products. The digital bank's product suite is designed for a completely digital experience, with all account management, GIC purchases, and maturity processes handled online or through the mobile app without paperwork or branch visits. This model allows EQ Bank to operate without physical branches, passing on savings to customers in the form of higher interest rates and no everyday banking fees. The bank's parent company, Equitable Bank, is the country's ninth-largest Schedule I Bank, established over five decades ago, providing a foundation of stability for the digital brand launched in 2016.
Key Rules for Purchase and Limits
Purchasing an EQ Bank GIC is governed by several important rules regarding eligibility, amounts, and limits. To be eligible, you must be a Canadian resident with a permanent Canadian address, be of the age of majority in your province or territory, and have an active EQ Bank Personal Account to fund the investment. The minimum deposit for any GIC is $100, which is notably lower than the $1,000 minimum required by many other financial institutions. There is a maximum purchase amount of $100,000 per individual GIC certificate. For non-registered GICs, a customer can hold a maximum of 20 active GICs at one time. There is no limit on the number of registered GICs (TFSA, RRSP, FHSA) you can hold, but you must always adhere to the contribution limits set by the Canada Revenue Agency for those registered plans to avoid penalties.
The rules for GIC purchases differ for various account types and customer situations. For non-registered GICs, a customer can hold a maximum of 20 active GICs at one time. For registered GICs held within TFSAs, RRSPs, or FHSAs, there is no limit on the number you can purchase. Each GIC purchase, whether registered or non-registered, must be for a minimum of $100 and a maximum of $100,000 per certificate.
- Non-registered GICs: Maximum of 20 active GICs per customer.
- TFSA GICs: No limit on number, but must respect CRA contribution room.
- RRSP GICs: No limit on number, but must respect CRA contribution room.
- FHSA GICs: No limit on number, but must respect CRA contribution room.
- Overall Limit: A maximum of $500,000 in total GIC holdings across all types.
- Business GICs: Available, but not to customers in the province of Quebec.
These purchase structures are designed to provide investment flexibility. The limit on non-registered GICs encourages consolidation of larger sums into fewer certificates. The separate rules for registered accounts acknowledge their distinct tax-advantaged purposes. It is the investor's responsibility to track their CRA contribution room for TFSAs, RRSPs, and FHSAs to prevent over-contribution penalties. EQ Bank does not monitor these external contribution limits on your behalf.
How Interest is Calculated and Paid
The method of interest calculation and payment at EQ Bank depends entirely on the term length of the GIC. For short-term GICs with terms of less than one year, simple interest is calculated on a per diem basis and the total interest is paid in a single lump sum when the GIC matures. For a GIC with a term of exactly one year, simple interest is calculated on a per annum basis and is also paid at maturity. For GIC terms over one year, excluding the special 15-month and 27-month terms, interest is calculated on a per annum basis. For these longer terms, you may have the option to receive simple interest payments annually or to have the interest compounded annually and paid at maturity. For the specific 15-month and 27-month GIC terms, interest is calculated on a per annum basis, compounded annually, and paid solely at maturity. In all cases, the interest is accrued for the entire GIC term and the principal is guaranteed.
Understanding the difference between simple and compound interest is key. Simple interest is calculated only on the original principal amount. If you choose annual interest payments on a long-term non-registered GIC, you receive a simple interest payout each year, which is taxable income in that year. If you choose to have interest compounded, the interest earned each year is added to the principal, and the next year's interest is calculated on the new, larger balance, leading to greater total returns. The 15-month and 27-month terms are structured with compulsory compounding, offering a blend of a medium-term commitment with the growth potential of compounding. The rate quoted for any term is an annual rate, and the actual dollar amount of interest earned will be proportional to the principal invested and the specific calculation method.
The Maturity Process and Tax Reporting
When your EQ Bank GIC reaches its maturity date, the process is fully automated. The full amount of your original principal plus all accrued interest will be automatically deposited back into the source account from which the initial investment was made. If the GIC was held in a non-registered Personal Account, the funds return to that account. If it was a registered GIC, the funds return to the corresponding TFSA, RRSP, or FHSA savings account. You will receive an email or SMS notification alerting you that the GIC has matured. For tax purposes, any interest earned on a non-registered GIC is considered taxable income in the year it is earned or accrued. EQ Bank will issue a T5 tax slip for this interest income, which can be accessed by signing into your account online or through the mobile app. The bank does not provide physical paper statements for GIC purchases, but all transaction history is available digitally.
You have options for what happens to your money at maturity, which you typically set up when purchasing the GIC. You can choose to have the funds deposited into your linked account, or you can instruct EQ Bank to automatically renew the GIC into a new term at the prevailing interest rates at that time. It is important to review and understand your maturity instructions to avoid having funds sit uninvested or reinvested at an undesired rate. For registered GICs, the maturity proceeds remain within the tax-sheltered plan unless you initiate a withdrawal. The T5 slip for non-registered GICs will be available digitally by the end of February for the previous tax year, and you must report this income on your annual tax return. Interest earned within TFSA or FHSA GICs is not reported on a T5 and does not affect your taxable income.
Safety and Protection Through CDIC Insurance
Deposits held in EQ Bank GICs are protected by the Canada Deposit Insurance Corporation, a federal crown corporation. Equitable Bank, the parent company of EQ Bank, is a Schedule I bank and a member of CDIC. This insurance guarantees eligible deposits up to $100,000 per insured category, per depositor. This means your principal and any accrued interest are protected up to that limit in the unlikely event of a bank failure. It is important to understand how coverage is aggregated. Deposits made under the EQ Bank trade name and those under the Equitable Bank name are combined for insurance purposes. The $100,000 coverage applies separately to different categories, such as deposits held in a personal name, joint deposits, deposits in TFSAs, RRSPs, and FHSAs. This protection provides a high degree of security for Canadian investors using the digital bank.
EQ Bank, as a trade name of Equitable Bank, is part of a financial institution with over five decades of history and combined assets under management of $35 billion. The bank holds over $4 billion in customer deposits, all of which fall under the CDIC framework. The per-GIC limit of $100,000 aligns with the standard CDIC insurance limit, making it straightforward to ensure full coverage for each certificate. If you hold multiple GICs and other deposits across different categories with Equitable Bank and EQ Bank, you should review the CDIC's rules to understand how your total coverage is calculated. This federal insurance is a critical feature that places online banks like EQ Bank on equal footing with traditional brick-and-mortar institutions in terms of deposit safety for Canadian savers.
Common Mistakes and Important Considerations
Several common pitfalls can affect the outcome of a GIC investment with EQ Bank, primarily related to liquidity and planning. The most significant consideration is that EQ Bank GICs are non-redeemable. Once a short cancellation period of one day has passed, your funds are locked in until the maturity date. If you need to access the money early, you cannot redeem the GIC and will forfeit all interest, though your principal would be returned. Another mistake involves not planning for maturity, as the funds will be automatically reinvested or returned to your account based on your pre-selected instructions. Over-contributing to registered GICs (TFSA, RRSP, FHSA) beyond your CRA limit is a serious error that results in financial penalties. Finally, residents of Quebec must carefully verify product availability, as key registered products like RRSP and FHSA GICs are not offered in that province, which limits investment options within those tax shelters.
Other practical considerations include the need for an existing EQ Bank account to fund the GIC purchase. You cannot buy a GIC directly with funds from an external bank. The money must first be in your EQ Bank Personal Account or registered savings account. Furthermore, while EQ Bank promotes a digital experience, some customers may find the lack of physical branches a drawback if they prefer in-person service. It is also a mistake to assume all long terms have the highest rates, as the rate curve can be inverted, with shorter terms sometimes offering comparable or better returns. Always compare the specific rates for your desired term length before committing. Lastly, remember that interest rates are subject to change, so the rate you see when you decide to invest may differ from a rate quoted earlier.
Alternatives and Comparison to Other Institutions
If the terms or structure of EQ Bank GICs are not suitable, Canadians have several alternative options from other digital banks and traditional financial institutions. Other prominent digital banks like Tangerine Bank offer non-registered, TFSA, RRSP, RIF, and US dollar GICs with terms ranging from 90 days to 5 years. Simplii Financial, another digital bank, provides non-registered and RRSP GICs for terms of 1, 2, 3, 4, and 5 years. Canada's large traditional banks, often called the Big Six, generally offer a wider range of GIC types and terms, including redeemable and cashable options, though often with higher minimum deposits and potentially lower interest rates. When comparing, key factors to consider are the interest rate for your chosen term, the minimum deposit requirement, the redeemability of the GIC, and the registration options available.
The competitive landscape for GICs shows that EQ Bank's primary advantages are its low $100 minimum deposit and its consistently competitive rates on standard non-redeemable terms. Its disadvantages are the lack of redeemable options and the restricted product availability in Quebec. Other institutions may offer features like market-linked GICs or step-up rates, which EQ Bank does not currently provide. The decision often comes down to a trade-off between seeking the highest possible guaranteed rate and maintaining flexibility or access to specialized products. It is prudent to compare current rates from multiple providers using independent comparison tools, as rates fluctuate frequently and one institution may lead in one term length while trailing in another.
Frequently asked questions
Can I cash out my EQ Bank GIC early?
No, EQ Bank GICs are non-redeemable. Once a brief one-day cancellation period has passed after purchase, your funds are locked in until the maturity date. If you cancel within that one-day window, you will receive your principal back but no interest. After that, early redemption is not permitted.
Are EQ Bank GICs available in Quebec?
Yes, EQ Bank GICs are available to residents of Quebec, but with important exceptions. Quebec customers cannot purchase RRSP GICs, FHSA GICs, or Business GICs. All other GIC products, including non-registered and TFSA GICs, are available to eligible customers in the province. Additionally, the EQ to EQ transfers feature is not available in Quebec.
How is interest on EQ Bank GICs paid?
Interest payment depends on the term. For terms under one year, interest is calculated daily and paid at maturity. For one-year terms, simple annual interest is paid at maturity. For terms over one year (excluding 15/27 months), you may choose annual interest payments or compounding paid at maturity. For 15 and 27-month terms, interest is compounded annually and paid at maturity.
Are EQ Bank GICs covered by CDIC insurance?
Yes, all eligible deposits in EQ Bank GICs are protected by the Canada Deposit Insurance Corporation. Equitable Bank, EQ Bank's parent company, is a CDIC member. Protection is provided for up to $100,000 of principal and interest per insured category, per depositor. Deposits under the EQ Bank and Equitable Bank names are aggregated for this limit.
What is the minimum amount to open an EQ Bank GIC?
The minimum deposit required to open any EQ Bank GIC is $100. This low minimum is notably below the average $1,000 required by most other banks. Each individual GIC investment must be for at least this amount, up to a maximum purchase amount of $100,000 per GIC certificate. This accessibility allows customers to start investing with a relatively small sum. The low entry point is a key feature of EQ Bank's digital offering.
How many GICs can I have with EQ Bank?
For non registered GICs, you can purchase up to 20 active GICs at a time. There is no limit on the number of registered GICs you can buy within TFSA, RRSP, or FHSA accounts. However, there is an overall limit of $500,000 in total GIC holdings across all account types per customer. Each GIC purchase must be for at least $100 and no more than $100,000. Customers must also be mindful of their registered account contribution limits to avoid penalties.
Sources and further reading
- GICs eqbank.ca
- The best EQ Bank GIC rates in Canada ratehub.ca
- Best EQ Bank GIC Rates for October 2026 nerdwallet.com
- Rates equitablebank.ca
This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.