Best Scotiabank GIC Rates in November 2024

ByDan Kent Published On:

Although online banks and credit unions in Canada like Equitable Bank are often able to provide more robust rates on a Guaranteed Investment Certificate (GIC), many major institutions still offer competitive rates of interest and even sometimes promotional rates on both registered and non-registered GICs.

In this article, we’ll display the Bank of Nova Scotia’s best long and short-term GIC rates, along with any specialty GIC rates they may have, like market-linked GICs.

Current Scotiabank GIC Rates

Scotiabank offers a variety of Guaranteed Investment Certificates (GICs) with competitive interest rates for both long and short-term GICs, as well as market-linked options.

**Rates are updated as of January 5th, 2024. Rates subject to change without notice to us. Click the link in the table to head to Scotiabank’s website to see the most up to date rates.

Short-Term GICs

Long-Term GICs

Specialty GICs

  • Market-Linked GICs: Rates can fluctuate from 15.00% up to 50.00% over a 5-year term; this is not an annual rate, but a cumulative rate. The best way to get their market-linked GIC rates is to contact the institution, as you can often negotiate them.
  • Business GIC Rates: For specifics on rates applicable to business accounts and investments. Business GIC Rates.

Are GICs right for you?

Investing in Guaranteed Investment Certificates (GICs) can be a secure way to grow savings, as they offer guaranteed returns over a fixed term. However, whether they are worth it or not depends on your overall investment plan.

For Canadians considering GICs, Scotiabank, one of the country’s leading financial institutions, offers a wide range of options to fit various investment strategies and time horizons. 

Scotiabank’s GICs are designed to provide individual and business customers with the security of a fixed interest rate, ensuring capital is protected while potentially earning higher returns compared to regular savings accounts.

Scotiabank provides GICs with varied terms, from short-term investments to those with a longer horizon, catering to different savings goals. Their GICs are Canadian Deposit Insurance Corporation (CDIC) insured, meaning your money is protected up to $100,000.

Whether clients are looking for market-linked GICs that tie returns to the performance of equity markets or personal redeemable GICs for added flexibility, options are available to meet any investment goals.

Understanding the features and benefits of each GIC type is paramount for making an informed investment decision. For example, a variable rate GIC could fluctuate depending on where the Bank of Canada goes with policy rates, whereas with a fixed rate GIC, you get the same guaranteed rate of return over the entire term of the GIC.

How to buy a Scotiabank GIC

Banks make it very easy for people to buy GICs. They’re a huge source of bank capital inflows and are pivotal to many banks’ strategies.

Choose the Type of GIC: First, an investor should determine the type of GIC that best suits their financial goals. Scotiabank offers a variety of GICs, including Personal Redeemable GICs and Non-Redeemable GICs, each with different interest rates and terms.

  • Personal Redeemable GICs or Cashable GICs offer more flexibility, allowing access to funds before maturity.
  • Non-redeemable GICs typically offer higher interest rates but lock in the investment until maturity. You’ll pay a penalty if you need to withdraw and often have to prove financial hardship.

Check the Current Rates: An investor needs to review the current GIC interest rates Scotiabank offers to make an informed decision. At the top of this article, you’ll see Scotiabank’s most current rates as of the start of the month.

Contact Scotiabank: An investor can visit a local Scotiabank branch or contact the bank via phone or online services to begin buying a GIC.

Required Information:

  • Name
  • Address
  • Social Insurance Number
  • A piece of valid government-issued photo identification

Decide on the Investment Amount: The investor will have to decide how much they want to invest, keeping in mind that different GICs have different minimum investment requirements. In addition to this, the amount invested with GICs held inside of a TFSA, FHSA, RESP, RRIF, or RRSP will depend on your overall contribution room.

Complete the Application: Scotiabank will provide a GIC application for the investor to fill out. Every detail should be reviewed for accuracy before submission.

Once the application is submitted and processed, the investor will receive confirmation and details regarding the GIC, including the interest rates, issue date, and maturity date. They should keep all documents for their records.

Alternatives to GICs

GICs are only one way of many to invest. Being a major institution, Scotiabank offers practically all of the alternatives for those who may find GICs sub-optimal for their strategy or needs.

Lets go over a few, most of which you could buy directly from their Scotia iTrade platform.

High-Interest Savings Accounts (HISAs) provide liquidity similar to savings accounts but often with higher rates. They are especially beneficial for those who may need occasional access to their funds while still earning more than a standard savings account.

HISA exchange-traded funds (ETFs) offer investors the option to invest in institutional high interest savings accounts via an ETF. Some of the most popular ones are CASH and HSAV from Horizons.

Bonds represent another fixed income choice, one that often has a bit more risk but higher yields. These can include government and corporate bonds. Government bonds are generally deemed to be low-risk, while corporate bonds carry varying degrees of risk depending on the company’s creditworthiness.

Investors looking for more risk might look into the stock market. Stocks provide the potential for higher returns in exchange for higher risks and volatility.

Alternative fixed income products from Scotiabank

When investors seek diversity beyond Guaranteed Investment Certificates (GICs), Scotiabank offers a selection of alternative fixed income products. These options include bonds, Treasury Bills (T-Bills), Savings Bonds and Money Market Funds.

Bonds represent a loan the investor makes to the issuer, which could be a corporation or government. They typically offer fixed or variable interest rates and are considered a stable investment choice. The return and safety level depend on the issuer’s creditworthiness.

Treasury Bills, commonly referred to as T-Bills, are short-term securities issued by the Canadian government. These are sold at a discount and mature at par value, the difference representing the interest earned. They are known for their safety and liquidity.

  • High-Interest Savings Accounts (HISAs): Scotiabank provides HISAs that offer higher interest rates compared to regular savings accounts, which can serve as a secure location for maintaining funds while earning steady returns.
  • Money Market Funds: Tailored for those who desire higher returns than a typical savings account while maintaining access to their funds, these market funds invest in short-term debt securities.
  • Scotia Income Advantage Fund: For investors aiming for consistent income, this fund provides a mix of high-quality fixed income securities, with a focus on Canadian debt instruments.