Best Royal Bank of Canada GIC Rates in November 2024

ByDan Kent Published On:

Guaranteed Investment Certificates (GICs) at Royal Bank of Canada present a secure way for Canadians to invest their money while having the peace of mind that they’re buying one from the largest financial institutions in the country. 

RBC Royal Bank offers a range of GIC products that cater to various investment needs. Other banks, like Scotiabank or Bank of Montreal, offer a wide variety as well. However, I find that RBC has one of the most diverse suite of products.  They may not be able to compete in terms of rates with Equitable Bank GICs, but they also have a wider product variety.

Understanding the interest rates associated with these financial products is essential for investors to make informed decisions. 

Interest rates for GICs at RBC can fluctuate, so we’ve created some tables below that will give you the best GIC rates at RBC. We plan to update this table monthly.

** Rates are updated as of January 8th, 2024. Short-term GIC rates are on a per annum basis. Rates are subject to change at any point, so make sure to visit RBC’s website to see the most up-to-date rates.

Current Royal Bank GIC Rates

Short-Term GICs

Long-Term GICs

Special GIC rates

RateAdvantage GIC:

This unique GIC type offers an escalator each year in terms of your interest rate. You are guaranteed to receive an increase in interest every year, and you can also access early redemption with a cashable RateAdvantage GIC.

Interest-Linked (Prime-Linked) GICs:

These GICs are variable rates, meaning your payment will fluctuate based on the Royal Bank prime rate, which is also impacted by the Bank of Canada’s movement on policy rates.

RBC Equity-Linked GICs:

RBC offers some very interesting market-linked GICs, or what they call Equity-Linked. Your return is never guaranteed for a basic market-linked GIC, simply your principal. However, with RBC, they have a specific minimum return that not only allows you to lock in a rate of return similar to a normal GIC but also adds returns based on the movement of the market. 

One key thing to note is that most of these GICs also have a maximum return, which is why I’m not a huge fan of them when looking to get exposure to the stock market.

All of RBC’s specialized GIC rates and standard GIC rates can be viewed here.

How to buy a GIC with RBC

Purchasing a Guaranteed Investment Certificate (GIC) from RBC is a straightforward process. It can be done without contacting the bank if you’re a customer. GIC holders with RBC can also access their GIC information online via their banking portal.

Investors have options, including various registered accounts like buying a GIC in an RRSP, TFSA, RESP, RDSP, RRIF, and LIF, enabling you to earn interest tax-free.

Alternatively, you can purchase a non-registered GIC in a cash or margin account, but note that interest income is one of the worst forms of investment income for tax purposes.

Step 1: Choose the type of GIC

RBC offers both non-redeemable and redeemable GICs, along with various equity-linked options. The investor can then decide if they prefer a fixed or variable interest rate or a rate based on a specific formula.

  • Non-Redeemable GICs: Typically offer higher interest rates for those who can commit to leaving their investment until maturity. Investors can utilize a GIC laddering strategy to enhance liquidity if they’d like.
  • Redeemable GICs: Offer the flexibility to access funds before maturity but usually at a lower interest rate.
  • Equity-Linked GICs: Offer a minimum rate of return with higher potential returns if the index it is linked to has positive returns.

Step 2: Select the account you’d like to buy the GIC in

Clients can choose to invest through:

  • Personal Investment Accounts
  • Registered Plans: Such as RRSP, TFSA, RESP, RDSP, RRIF, LIF

For the most part, a registered GIC simply means you’re purchasing it in a registered, tax-sheltered RBC account. However, there is a chance that Royal Bank could be offering promotional rates for registered or unregistered GICs. So, it’s important to keep this in mind when making your selection.

Step 3: Buying the GIC

  • Via RBC Online Banking:
    • Log in to RBC Online Banking.
    • Navigate to the GIC section.
    • Choose from the available GIC products.
  • Through RBC Direct Investing:
    • Access RBC Direct Investing.
    • Explore competitive GIC rates and terms.
    • Make the purchase online, managing the investment within the platform.
  • Speak with an Advisor:
    • Utilize MyAdvisor to receive personalized advice.
    • Get professional advice to align with your investment goals.

Alternative fixed-income products from RBC

In addition to traditional GICs, RBC Royal Bank offers a variety of alternative fixed-income products so that investors can purchase the right product for them.

As mentioned numerous times in this article, RBC Equity-Linked GICs represent a unique option, combining the security of GICs with the potential for higher returns linked to equity market performance. A Canadian market-linked GIC will give you exposure to the Canadian markets. However, you can also get exposure in the United States with US-based market-linked GICs.

Bond Funds can be an excellent alternative for those looking for fixed-income investments. Although they have pricing volatility, they typically offer higher yields for taking on a small risk.

RBC Money Market Funds pool together some of the best fixed-income investments available today and usually issue units as an ETF or mutual fund for investors to purchase. You will likely see products like a GIC inside a money market fund.

Investors seeking personal advice can turn to an RBC advisor. These professionals guide a range of products to create a balanced portfolio, taking advantage of RBC Online Banking for seamless management. Investors may also explore RBC Direct Investing for a hands-on approach to fixed-income investment products. However, I do feel there are better brokerage alternatives today because of RBC Direct Investing’s high commission costs.

The following table outlines some alternative fixed-income products available through RBC.

For those new to investing or seeking more information, RBC offers comprehensive GIC FAQs on their website. This resource answers common questions about terms, interest rates, and the benefits of different fixed-income products.

Should you be buying GICs right now?

GICs are a popular choice for investors who seek a stable and guaranteed return on their capital. However, whether or not they’re worth it for you depends on your investment goals.

They offer the security of preserving the principal amount while earning interest at a fixed or variable rate, with various interest payment options, paid semi-annually, annually, or even at maturity in the event of a compounding GIC.

As an instrument that pledges the safety of the initial investment, GICs serve as a conservative investment option for those looking to balance their portfolios with lower-risk assets.

Allocating funds to Guaranteed Investment Certificates (GICs) can be a stable method for enhancing savings, given their promise of fixed returns over a specified period.

Royal Bank’s GIC offerings aim to safeguard individual and corporate clients’ capital through a stable interest rate, offering the potential for larger gains compared to typical savings accounts.

With a range of durations, from short to long-term, RBC’s GICs are tailored to meet a wide variety of savings objectives. In addition, Royal Bank’s GICs are CDIC eligible and insured by the Canadian Deposit Insurance Corporation (CDIC), offering protection up to $100,000.

Before deciding to invest in GICs at this time, it’s important to consider your financial goals, the current economic environment, including inflation and interest rates, and your personal risk tolerance. 

Individuals must weigh the safety of fixed returns against the potential for higher earnings in other, more volatile investments like the stock market.

With RBC’s diverse GIC portfolio, including non-cashable and cashable GIC options, plus a wide variety of other options, investors can select investment vehicles that align closely with their financial objectives and timelines. They have one of the most impressive suites of GIC products out there.