The Best CIBC GIC Rates in November 2024

Canadian Imperial Bank of Commerce (CIBC) is a Big 6 institution in Canada that offers a variety of Guaranteed Investment Certificates (GICs). 

GICs are a popular choice for Canadians who want to earn a fixed interest rate on their savings, ensuring that their initial principal is protected. GICs typically pay more than a savings account at the cost of liquidity.

With different interest rates and terms to suit individual financial goals, CIBC GICs provide a reliable way to grow savings with the assurance of getting the original investment back at the end of the term.

You’ll often see online banks like Equitable Bank offer the most attractive interest rates over the long haul. This is typically because, as an all-digital bank, they operate with lower expenses and can typically offer the best GIC rates. However, you may see Royal Bank GICs or Scotiabank GICs have special promotional rates that attempt to keep up with banks like Equitable.

CIBC is much the same. They’re unlikely to be able to compete over the long haul with a digital bank, but they’re competitive, and they cater to both short-term and long-term investment plans. 

Let’s look at CIBC’s current GIC rates to give you an idea of what the company has to offer.

Current CIBC GIC rates

Short-term GICs

For the most part, short-term GICs have maturities that are less than one year. However, many banks have a wide variety of short-term GIC rates. For example, some may choose not to offer a very short-term GIC rate, as you can see above.

Long-term GICs

Long-term GICs are certainly the more traditional GICs. They have a wider variety of products when it comes to long-term GICs, primarily because the longer maturity date allows them to be more flexible.

For example, a variable rate GIC can have you earning a variable interest rate that fluctuates depending on the Bank of Canada’s decisions to raise or lower policy rates.

Special GIC rates

CIBC sometimes offers Special GIC Rates for products such as the 1-Year CIBC Bonus Rate GIC or the CIBC Bonus Rate TFSA GIC. In addition to this, they have specialized products like the CIBC Escalating Rate GIC, where your interest rate grows every year.

These rates are often promotional and can provide a higher return on investment compared to standard GIC rates.

I won’t list the bonus GIC rates in this article because the promotional offers are subject to change quickly. Instead, I’ll just link to the page where CIBC posts their special rates, and you can go there and have a look.

Keep in mind these rates are often above the posted rates above, and they can actually be quite attractive. It is pretty important to keep an eye on rates as they fluctuate on a day-to-day basis.

It’s important to know that rates can be different among institutions like banks and credit unions, so reviewing CIBC GIC rates directly on their website is relatively important. 

GIC laddering is a strategy to consider if you’re afraid to lock in money on longer terms. You can spread your maturities out and have consistent cash flow to either reinvest in other GICs or even the stock market.

How to buy a GIC at CIBC

The major banks have come a long way when it comes to user experience and the ability to execute transactions without contacting the bank. Purchasing a GIC through CIBC is much the same. If you have an account with them, it won’t take much more than logging into your CIBC online banking and picking a GIC.

Step 1: Choose the type of GIC

Investors must first decide between redeemable GICs, which allow for early cash-out, and non-redeemable GICs, which generally offer higher interest rates but must be held until maturity.

CIBC provides options ranging from 1-year to 5-year terms, including Variable Rate GICs and Bonus Rate GICs. 

Investors choose based on their financial objectives, desired interest rate, and the total return they aim for. For those interested in higher returns that are tied to the market’s performance, CIBC Market Linked GICs are also available.

This step is the most important when it comes to purchasing a GIC. Choosing the wrong product can put you in a difficult financial situation, or have you earning sub-optimal returns.

To appeal to a broad range of customer needs, CIBC also offers promotional rates and products such as the 1-year CIBC Bonus Rate GIC. Make sure you’re investigating what product is best for you.

Step 2: Select what account you want to buy it in

Deciding on the right account is crucial when buying a GIC. CIBC offers GICs that can be purchased within registered accounts, such as RRSPs, TFSAs, RESPs, RRIFs, and LIFs, which can have tax advantages. 

Registered GICs allow earnings to grow tax-free or tax-deferred. There are also options for non-registered accounts accounts if that better suits the investor’s needs. The minimum investment typically required can vary, so investors should confirm the amount prior to purchasing the GIC.

In my opinion, GICs inside of registered accounts aren’t the best options for most people. Sure, there are specific circumstances where they make sense, but typically, the opportunity cost to earn tax-free gains from higher-risk investments like the stock market will end up hurting investors over the long term.

Step 3: Buying the GIC

After selecting the type of GIC and the account, investors can complete their purchase through CIBC’s online platform, at a CIBC banking centre, or over the phone. 

If you’ve reviewed the terms, conditions, interest payment frequency, and minimum deposit amounts of the GIC and have found it suits your needs, the process is relatively easy to buy. 

If you don’t have a bank account with CIBC, the process is a little longer but still relatively seamless.

Depending on the chosen GIC, interest may be paid annually or at maturity, allowing for compound interest. Investors have the opportunity to choose from various terms and interest payment options, which can impact the overall return on their investment.

Alternative fixed-income products from CIBC

In addition to standard Guaranteed Investment Certificates (GICs), the Canadian Imperial Bank of Commerce (CIBC) offers a range of alternative fixed-income products designed for those seeking to diversify their investment portfolio and potentially enhance their rate of return.

For the most part, their alternative products will come in ETF form. For example, their Active Investment Grade Floating Rate Bond ETF, which trades under the ticker CAFR, contains a wide variety of government and corporate bonds.

While its Core Plus Fixed Income Pool, trading under the ticker CPLS, gives investors exposure to money market funds, treasury bills, and other fixed income securities with the added liquidity of an ETF.

Different GIC strategies in today’s market

GIC laddering, which involves splitting investment funds across multiple GICs with varying investment terms, is a very popular strategy to boost liquidity and even increase returns. 

This approach allows investors to benefit from different interest rates and maintain access to a portion of their funds as each GIC matures at different intervals.

Interest earned over the GIC terms can be optimized through this laddering strategy, as investors take advantage of longer-term GICs, which typically offer higher interest rates, while still having flexibility afforded by shorter-term GICs.

Alternatively, you could utilize specific types of GICs to align with your risk tolerance and liquidity needs, like the following:

• Redeemable GICs: These GICs offer customers the opportunity to withdraw funds before the maturity date without penalty, providing more liquidity to their investment.
• Market-Linked GICs: Tied to the performance of the market or specific indices, these GICs offer the potential for higher returns while protecting the principal investment.

Should you be buying GICs right now?

Whether or not you should invest in GICs right now is a personal decision, one that depends on your risk tolerance, financial goals, and long-term targets. Those who are investing for the long haul with no need for the capital could consider riskier assets that have proven to return more, like ETFs, stocks, or mutual funds.

However, if you simply want to understand if they’re worth buying from a product standpoint, let’s go over a few details to ease your mind.

With the backing of the Canada Deposit Insurance Corporation (CDIC), investments in GICs at major banks, including CIBC, are insured up to certain limits, providing a layer of protection for investors’ savings.

Financial institutions across Canada offer GICs as a low-risk savings instrument with a fixed return rate, making them an appealing choice for conservative savers. In the context of fluctuating economic conditions and stock prices, the stability of a CDIC-insured GIC becomes even more attractive.

Recent trends in interest rates have drawn attention to GICs as a potential option for those looking to safeguard their capital while earning a modest return.

When considering the purchase of GICs, investors should evaluate the following:

• Insurance: GICs are insured up to $100,000 per depositor per insured category at CDIC member institutions.
• Return: Compare rates offered by different banks to find the best potential return on your investment.
• Guarantee: Investment in a GIC means the initial capital is guaranteed to be returned at the end of the term.