Fixed Deposits in Canada 2026: A Steady Path to Financial Security
In a year when many Canadians are balancing higher everyday costs with longer-term goals, fixed deposits—most commonly offered as Guaranteed Investment Certificates (GICs)—stand out for their predictability. This guide explains how they work, what types exist, and how to compare them with other savings choices in Canada.
Canada’s savings landscape can feel noisy in 2026: rates shift, headlines change, and “safe” can mean different things depending on your timeline. Fixed deposits, typically structured as Guaranteed Investment Certificates (GICs), appeal to people who value a defined term, a known return, and a clear role in a broader plan. They are not designed to outperform riskier assets over long periods, but they can reduce uncertainty for money you may need on a specific date.
Understanding fixed deposits (GICs) in Canada
A fixed deposit in Canada is most often a GIC: you deposit a set amount for a fixed term, and the institution pays interest according to the agreement. The core trade-off is straightforward—predictability in exchange for flexibility. Many fixed-term GICs are non-redeemable, meaning you generally cannot withdraw early without restrictions or losing interest, while redeemable options may allow access under specific conditions.
For risk management, it also matters where you buy the GIC. Many Canadian bank and trust-issued GICs can be eligible for Canada Deposit Insurance Corporation (CDIC) coverage (up to applicable limits and categories), while many credit-union deposits are protected under provincial deposit insurance regimes. Eligibility, limits, and categories depend on the product and institution, so it’s worth confirming the details for your specific deposit.
Why fixed deposits are gaining attention in 2026
Fixed deposits tend to gain popularity when Canadians want clarity about what their savings will do over a defined period. After periods of rate volatility, a set rate can make budgeting easier—especially for near-term goals like a home down payment, tuition, a car purchase, or a planned move. Another driver is behavioural: a fixed term can reduce the temptation to spend funds that are meant for a particular milestone.
That said, fixed deposits are not “set and forget” in the sense that you can ignore the rest of your plan. Inflation can erode purchasing power, and opportunity cost matters if market rates rise after you lock in. Many people address this by staggering maturities (often called laddering) so only part of their money renews at any one time.
Types of fixed deposits available in Canada
Canadian institutions offer several fixed-deposit/GIC structures, and the right choice depends on how much access you might need and how you want interest paid. Common term lengths range from a few months to five years, with longer terms often offering higher rates, though this varies over time.
Non-redeemable GICs typically offer more attractive rates because you commit to leaving the funds in place. Cashable or redeemable GICs provide earlier access, but may pay less interest or require you to hold the deposit for a minimum period before cashing out. You may also see market-linked GICs, where returns are tied to an index with limits on upside; they can appeal to conservative investors, but the return formula can be complex and outcomes are less predictable than a simple fixed rate.
A practical choice for long-term peace of mind
Fixed deposits can be a practical tool when your priority is protecting principal and matching money to a date on the calendar. They can also be useful for building a “safe” portion of an overall portfolio—particularly for short- to medium-term needs—so that other investments don’t have to be sold at an inconvenient time.
Where they fit best often depends on account type. Holding a GIC inside a TFSA, RRSP, or FHSA may provide tax advantages (subject to contribution room and rules), while a non-registered account may result in taxable interest income. The product itself can be simple, but the planning around tax, liquidity, and timing is where many Canadians get the most value from thinking it through.
Fixed deposits compared to other savings options
Real-world “cost” with fixed deposits is less about fees (many GICs have none) and more about constraints: minimum deposit requirements, limited early access, and the possibility that newer GICs may offer better rates after you lock in. In practice, Canadians often compare fixed deposits with high-interest savings accounts (more flexible but usually variable), cashable GICs (some access with conditions), and short-term government securities accessed through brokerages. When comparing providers, look at the term, whether the deposit is redeemable, how interest is paid (monthly/annually/at maturity), and what happens at maturity (automatic renewal versus payout).
| Product/Service | Provider | Cost Estimation |
|---|---|---|
| Non-redeemable GIC (typical 1–5 year terms) | RBC Royal Bank | Often no purchase fee; typical minimum deposit commonly around $500–$1,000; funds usually locked to maturity |
| Non-redeemable GIC (typical 1–5 year terms) | TD Canada Trust | Often no purchase fee; typical minimum deposit commonly around $500–$1,000; early withdrawal usually restricted |
| Non-redeemable GIC (typical 1–5 year terms) | Scotiabank | Often no purchase fee; typical minimum deposit commonly around $500–$1,000; term commitment required |
| GICs (including cashable options depending on term) | Tangerine Bank | Often no purchase fee; typical minimum deposit commonly around $500–$1,000; cashable terms may have conditions |
| GICs (online-focused terms) | EQ Bank | Often no purchase fee; typical minimum deposit commonly around $100–$500; usually non-redeemable until maturity |
| GICs (varies by province and product) | Meridian Credit Union | Often no purchase fee; typical minimum deposit commonly around $500; deposit insurance rules set provincially |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
A useful way to keep comparisons fair is to align the term and liquidity features first (for example, compare only one-year non-redeemable GICs), then evaluate rate, insurance eligibility, and maturity handling. If flexibility matters, consider keeping a separate cash buffer in a savings account so you are less likely to break a fixed term.
In summary, fixed deposits in Canada can support financial security by offering defined outcomes for defined timelines. They tend to work best as part of a mix: money you may need soon stays liquid, money tied to a known goal can be locked in, and long-term growth objectives can be addressed with assets designed for longer horizons and higher variability.
