With so much market volatility, fixed-income assets like GICs or Guaranteed Investment Certificates have been popular among Canadians. But what do we mean when we say GIC rates?
GICs pay out a fixed interest on the principal for the entire term. This GIC rate is determined by the Bank of Canada’s overnight interest rate. As this rate rises, so does the interest earned for GIC investors.
When it comes to Canadian GICs, HSBC provides some of the best rates in the country. This article will discuss HSBC’s GIC Rates and why they have been a good investment.
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HSBC Canada GIC Rates
For Canadians, HSBC offers multiple types of GICs to earn interest on. In no particular order, they are:
- HSBC TFSA GIC
- HSBC Canadian Dollar GIC
- HSBC RRSP Ascending GIC
- HSBC Redeemable GIC
- HSBC Non-Redeemable GIC
These HSBC GICs offer a guaranteed rate of return over a fixed term. If you sign up for an HSBC GIC by August 31st, there is an HSBC interest rate promotion of 5.25% for any Canadian dollar GIC. Here is a closer look at HSBC GIC rates as of August 2023:
HSBC TFSA GIC Rates
As the name suggests, the HSBC TFSA GIC is a great fixed-income asset to buy and hold in your Tax-Free Savings Account. This HSBC GIC is a fixed one-year term, but you can redeem it in the first 89 days, although you won’t earn any interest. If you redeem it after the year has passed, you will be paid the interest you earned on the first 90 days of the term.
With the HSBC TFSA GIC, you can invest as little as $500. TFSA GICs with HSBC are also eligible for CDIC deposit insurance. The interest for the HSBC TFSA GIC is calculated daily, not compounded, and paid at the date of maturity or redemption. Finally, as with most investment assets in your TFSA, all interest earned is completely tax-free!
| Term Length | Interest Rate (min $500) |
| 1-year term only | 3.00% |
HSBC Canadian Dollar GIC Rates
The HSBC Canadian Dollars is the bank’s standard GIC offering. You can lock in a rate from 30 days to as long as 5 years and earn a guaranteed rate of interest for the entire term.
This HSBC GIC is not redeemable at all, so choose your term length carefully. As with most GICs, the HSBC Canadian Dollar GIC offers higher interest rates for longer-term lengths.
| Term Length | Monthly Interest (min. $500) | Semi-annual Interest (min. $500) | Annual Interest (min. $500) | Annual Compound Interest (min. $500) | Interest at Maturity (min. $500) |
| 30 days | – | – | – | – | 2.50% |
| 60 days | – | – | – | – | 2.60% |
| 90 days | 2.75% | – | – | – | 2.75% |
| 120 days | 2.75% | – | – | – | 2.75% |
| 180 days | 3.25% | – | – | – | 3.25% |
| 270 days | 3.65% | – | – | – | 3.65% |
| 1 year | 4.10% | 4.10% | 4.10% | 4.10% | 4.10% |
| 2 years | 4.05% | 4.05% | 4.05% | 4.05% | – |
| 3 years | 3.85% | 3.85% | 3.85% | 3.85% | – |
| 4 years | 3.85% | 3.85% | 3.85% | 3.85% | – |
| 5 years | 3.85% | 3.85% | 3.85% | 3.85% | – |
HSBC RRSP Ascending Rate GIC Rates
This HSBC GIC is a nice option for those seeking to grow their investments in their RRSP. The HSBC RRSP Ascending Rate GIC can be redeemed at any time with a potential interest penalty. The only exception is a penalty-free redemption on your third or fourth-anniversary date.
There is no auto-renewal at maturity, but the longer you hold these GICs without redeeming them, the better. As with most of HSBC’s GICs, you can begin investing for as little as $500.
| Year | Issue Date | Redemption Date |
| Year 1 | 4.10% | 0.00% |
| Year 2 | 4.05% | 0.00% |
| Year 3 | 3.85% | 3.85% |
| Year 4 | 3.85% | 3.85% |
| Year 5 | 3.85% | 3.85% |
HSBC Redeemable GIC Rates
If you are looking to invest in an HSBC GIC but want to have the flexibility of redeeming it whenever you want, then consider the HSBC Redeemable GIC. As with the HSBC TFSA GIC, the Redeemable GIC can be redeemed without any interest earned in the first 89 days. On the 90th day or thereafter, you will collect the interest at the end of the term.
As of now, you can only buy an HSBC redeemable GIC with a one-year term and with a minimum investment of $500. Interest is calculated daily, not compounded, and is paid by HSBC at the time of maturity or redemption.
| Term Length | Interest Rate (min $500) |
| 1-year term only | 3.00% |
HSBC Non-Redeemable GIC Rates
As expected, HSBC’s Non-Redeemable GICs pay higher rates than its Redeemable GICs. The HSBC Canadian Dollar GICs are a good example of a non-redeemable GIC.
Currently, HSBC offers a promotional interest rate if you buy a 1-year, 2-year, or 3-year non-redeemable GIC. These have the same minimum deposit of $500 and a maximum deposit of $5 million per certificate. HSBC’s non-redeemable GICs cannot be held in any non-registered accounts like an RRSP or TFSA.
Interestingly, for the 2-year and 3-year HSBC Non-Redeemable GICs, there is a compound-interest option which is paid at the time of maturity.
| Term Length | Interest Rate (min $500) |
| 1-year | 4.10% |
| 2-years | 4.05% |
| 3-years | 3.85% |
HSBC Canada GIC Rates History
HSBC Canada’s GIC rate history is dictated by the Bank of Canada’s overnight interest rate. There will be a strong correlation between the two interest rates throughout history.
In times of high interest rates, investors will flock to guaranteed fixed-income assets like GICs. But when interest rates have historically been low, investors find a better risk-reward with equities.
Benefits of HSBC GICs
HSBC GICs are guaranteed investments. This means that if you leave your money in the investment for the entire term, you will get paid interest and receive your original investment at the time of maturity.
You can begin investing in HSBC GICs for as little as $500.
These days, there are more HSBC GICs that can be redeemed early. This can lead to some interest penalties, so make sure it is worth it to carry out an early GIC redemption.
Downsides of HSBC GICs
HSBC GICs pay a good interest rate, but not all of them calculate this as compound interest. This can make a big difference in your long-term gains.
You can be penalized for early redemption, so make sure it is worth your while to redeem your HSBC GIC early.
Not all HSBC GICs can be invested in registered investment accounts like TFSAs or RRSPs.
Does HSBC Canada Have Good GIC Rates?
Yes, HSBC Canada does offer good interest rates for its various GICs. The GIC rates are comparable to other banks like RBC and BMO. HSBC Canada is on the verge of being acquired by RBC, so the two banks should have similar rates in the future.
FAQs
What is the highest-paying GIC rate in Canada?
There are several high-paying GIC rates in Canada, mostly from smaller regional banks. EQ Bank is offering a 1-year non-redeemable GIC for an impressive 5.60%. Tangerine is offering the same type of GIC for a slightly lower rate of 5.50%.
Who has the best GIC rates in Canada?
The current highest GIC rates belong to EQ Bank and Tangerine. Smaller financial institutions like Achieva Financial and Alterna Bank also offer great GIC rates in Canada.
Who has the best GIC rates in Canada?
In Canada, smaller online neobanks can offer some of the best GIC rates. Banks like Motive Financial, LBC Digital, and EQ Bank all offer some of the best GIC rates in the country.
Can you negotiate GIC rates with banks?
Nothing says you cannot negotiate your GIC rates with banks. It might be a tricky discussion to have, but if they can add a couple of basis points to your GIC, you can earn hundreds, if not thousands, over time.
Related:
- How to Find Your BMO Routing Number
- BMO Rewards Program Guide
