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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.
Table of Contents ShowFor Canadians, HSBC offers multiple types of GICs to earn interest on. In no particular order, they are:
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:
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% |
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% | – |
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.
Baggio Ma has written extensively on financial topics over the past several years. His work experience in the private, public, and not-for-profit sectors has led to a special interest in personal finance-related topics. Baggio has written for several Canadian finance sites such as PiggyBank and Tech Daily. Baggio holds a Bachelor of Arts degree from the University of British Columbia and a Master of Public Administration Degree from the University of Victoria.