Scotiabank GIC review

What is a Scotiabank GIC?

Designed for the risk-averse, a Scotiabank Guaranteed Investment Certificate (GIC) lets you put money away for a set time to earn interest with zero chance of loss. Scotiabank GIC rates can be fixed or variable, and you have the option of choosing a certificate that’s cashable if you might need access to funds or non-redeemable if you want to score a higher rate. Terms range from 30 days to 10 years.

Let’s dive into how Scotiabank GICs work, including Scotiabank GIC rates and special offers.

Types of Scotiabank GICs

The Bank of Nova Scotia offers four types of GICs:

Cashable

Scotiabank Cashable GICs give you access to your funds after 30 days without penalty and provide a guaranteed return at varying interest rates.

• Minimum amount. $500 for cashable GICs and $5,000 for monthly interest payments
• Term. One year
• Payment frequency. Monthly or at maturity
• Account types. RRSP, TFSA, RESP, RDSP and non-registered accounts
• Renewable? Can automatically renew at maturity

Personal redeemable

Scotiabank personal redeemable GICs work just like cashable GICs in that you can fully or partially redeem your money before the maturity date without penalty. But the term length is longer and the interest rate at maturity is higher. As of the time of writing, you can earn 4% interest over a two-year term.

If you redeem early, you’ll still earn interest at a “predetermined rate.” Scotiabank doesn’t disclose the rate online, but you’ll likely earn less for redeeming early. Check with your Scotia representative for more details.

• Minimum amount. $500
• Term. Two years
• Payment frequency. At maturity
• Account types. Registered and non-registered accounts
• Renewable? Optional renewal at maturity

Non-redeemable

You can invest in Scotiabank non-redeemable GICs in Canadian or US dollars with the following options:

• Minimum amount. $500 for most GICs, $5,000 for CAD GICs compounded monthly with terms from one to ten years, $100,000 for USD GICs with terms under 30 days (at least 30 days to earn interest).
• Term. Short term or long term ranging from 30 days to 10 years (USD GICs from one to 29 days are available, but you won’t earn interest before 30 days).
• Payment frequency. At maturity for most GICs, but you can choose (1) monthly payments or (2) semi-annual or annual compounding and payment at maturity with one- to 10-year CAD GICs.
• Account types. Registered and non-registered accounts
• Renewable? Can be automatically renewed at maturity

Market linked

Scotiabank market-linked GICs guarantee your initial investment and minimum return at maturity. But you could earn much more given that your investment is tied to the performance of any of the following stock indices:

• Scotiabank Canadian Top 60. Tracks large, frequently-traded TSX stocks, typically leading Canadian or multinational businesses.
• Scotiabank U.S. Top 500. Tracks the largest publicly listed companies in the US.
• Scotiabank Canadian Low Volatility Index. Tracks the least volatile stocks included in the S&P/TSX Composite.
• Scotiabank Canadian Utilities. Tracks major utility companies included in the S&P/TSX Composite Index.

Stocks can underperform, so maximum returns aren’t guaranteed. But this could be a good investment choice if you want to combine the security of GICs with the potentially high returns of stock market investing.

• Minimum amount. $500
• Term. Two, three and five years
• Payment frequency. At maturity
• Account types. RESP, RRSP, RRIF, RDSP, TFSA and non-registered accounts
• Renewable? Optional renewal at maturity

Scotiabank GIC rates

GIC rates at Scotiabank start at 3% with a one-year cashable GIC and go as high as 3.4% with a one-year non-redeemable GIC (compounded and paid annually). Earnings could be higher with a market-linked GIC.

Short-term GIC interest rates

Short-term Scotia GICs have terms from 30 days to just under one year. Here’s what you could earn with a Scotiabank Short-term Non-Redeemable GIC.

Rates last verified on July 9, 2024.

Long-term GIC interest rates

Don’t mind giving up access to your funds to earn a higher interest rate? Here’s what you could earn with a Scotiabank Long-term Non-Redeemable GICs.

Rates last verified on July 9, 2024.

Are there any Scotia GIC special offers?

Scotiabank offers a special rate on three-year non-redeemable GICs if you have a premium chequing accounts. Instead of 3.15%, you could earn 4.14% with the Scotiabank Preferred Package or 4.24% with the Scotiabank Ultimate Package.

At the time of writing, you could earn up to 5.1% on a 12-month non-redeemable Scotia GIC (up from 3.4%).

If you’re looking for a low-risk investment with potentially high returns, consider a market-linked GIC, which guarantees a minimum return of 2.5% to 12.5% (depending on the GIC you choose) but could yield as much as 13% to 50%.

Scotiabank Student GIC Program

As part of its StartRight program, Scotiabank offers a unique GIC to help international students pay for their education. Invest in the Scotiabank Student GIC Program to earn interest from your school funds.

Deposit between $20,835 CAD and $50,000 CAD, get immediate access to a small portion and receive the rest in 12 monthly payments. After 12 months, you’ll have received the full amount back plus interest (minus a $200 program fee).

Why should I invest in a Scotiabank GIC?

• Low risk. Your principal investment is guaranteed, so you’ll never suffer a loss. Plus, many GICs come with guaranteed returns.
• Variety of terms. Choose between many different short and long terms ranging from 30 days up to 10 years. Earn higher rates with longer terms.
• Special offer. The three-year non-redeemable Scotia GIC rate goes up from 3.15% to 4.14% with the Scotiabank Preferred Package or 4.24% with the Scotiabank Ultimate Package.
• International student GIC. If you’re coming to Canada to study, the Scotiabank Student GIC Program makes it possible to earn a little on your education funds.
• CDIC insured. Scotia GIC deposits are insured by the Canada Deposit Insurance Corporation up to $100,000. Funds must be held in an eligible account like a TFSA, RRSP or RRIF.
• Convenient. As one of Canada’s major banks, Scotiabank has well-developed online and mobile banking platforms. The bank has branches coast to coast where you can get in-person help if needed.

What should I look out for?

• Minimum investment. To buy a Scotiabank GIC, you’ll need at least $500, or even higher for some options. If you’re looking for a low-risk way to earn a little on your savings, check out the best high interest savings accounts in Canada.
• Tough to cash in early with some GICs. Funds are locked in for a set term with non-redeemable GICs. You could face penalties or reduced earnings if you want to access your money before the maturity date.
• Earnings are taxable. You must pay income tax on your interest earnings unless you hold funds in a tax-sheltered account like a TFSA.

How to get a Scotiabank GIC

Ready to invest in a Scotia GIC? Get started by logging into your online banking account.

Eligibility requirements

• Be a Canadian resident who’s at least the age of majority in your province or territory (18 or 19)
• Have a Scotiabank account to fund your investment (you can apply to open an account online)
• Have at least $500 to invest

Minimum age requirements may be lower for Scotiabank’s Student GIC Program. But you’ll need to satisfy other criteria like having an eligible visa (not on a tourist or visitor visa) and having proof of enrollment at an eligible Canadian educational institution.

Documents

• Your name, residential status and contact information
• Your Social Insurance Number (SIN) and date of birth
• Your email address and phone number

How do Scotiabank GICs compare to GICs from other banks?

GIC rates at Scotiabank are comparable to GICs offered by Canada’s other Big Banks, although its rates fall a little on the low side. If you’re looking for higher GIC rates, you’ll probably be better off looking at online banks and credit unions.

But if you’re already a Scotiabank customer and want to keep all your financial accounts under one roof, Scotia GICs could be a good option. This is especially true if you have the Scotiabank Preferred Package or Scotiabank Ultimate Package, which pay special bonus rates on GIC.