Discover BMO’s GIC Rates and Future Trends. Bank of Montreal offers different ways for customers to invest their money, along with a range of financial services. Established in 1817, it’s Canada’s oldest bank. Explore further to learn about BMO’s current GIC Rates
BMO GIC Rates
The Guaranteed Investment Certificate (GIC) program helps people achieve their financial goals by offering different types of investments. These include cashable, market-linked, US dollar, and non-cashable options.
A GIC offers security for the money investors earn compared to what they initially invest. It’s a safe and reliable way to grow savings. When you invest a specific amount, the time period and interest rate are usually fixed.
Overall, GICs provide a stable way to save and grow your money without taking on much risk.
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About BMO
The Bank of Montreal is one of the top ten financial institutions in North America by size. It serves over twelve million people across Canada. You can find its shares listed on stock exchanges in Toronto and New York.
The bank offers a range of services for businesses and individuals, including everyday banking, loans, and help managing your money.
What Are GIC Rates at BMO?
The GIC offers modest returns because it invests in lower-risk funds. The rate you get from BMO’s GIC depends on the interest rate set by the Bank of Canada and how long you invest for.
Rates vary depending on the specific plan and its features. Currently, the highest rate is 5.5% for investments held between one and a half to two years, with interest paid annually. Below is a table detailing the yearly plan options.
| Term | CAD 1000 to CAD 99999 | CAD 100000 to CAD 249999 | CAD 250000 to CAD 999999 |
| Between one and one and a half years | 5 % to 5.5 % | 5 % to 5.5 % | 5 % to 5.5 % |
| Between one and a half and three years | 5.3 % to 5.5 % | 5.3 % to 5.5 % | 5.3 % to 5.5 % |
| Between three to five years | 5 % to 5.35 % | 5 % to 5.35 % | 5 % to 5.35 % |
| Between five and seven years | 5 % | 5 % | 5 % |
| Seven years | 5.05 % | 5.05 % | 5.05 % |
| Ten years | 5.1 % | 5.1 % | 5.1 % |
The rates mentioned above stay the same whether you get interest payments yearly, monthly, or twice a year. However, the bank can change these rates if the Bank of Canada changes its rates. To learn more about the Bank of Canada, check out the next section.
Reserve Bank of Canada
This is the top financial institution in the country. The officials at the Bank of Canada (BOC) set all the rules for our monetary policies. The BMO Guaranteed Investment Certificate (GIC) rates change whenever the BOC adjusts its rates.
The interest rate that the BOC charges when lending to other banks is 5 percent. This rate has been updated over the years. The prime rate, which is now over 7 percent, was increased this fiscal year. The BOC is the only authority that decides on issuing currency and managing other financial services and institutions.
BMO GIC Calculator
Anyone looking to invest in the BMO GIC can easily figure out their returns using an online tool. This tool takes into account several factors before giving you an estimate. Since the interest on this investment is compounded, it means you can earn even more over time.
All you need to do is enter the amount you want to invest and choose the term length. The tool will then apply the appropriate interest rate and show you the total amount you can expect. It also shows the plans you might qualify for. So, it’s a good idea to check your potential earnings before making an investment.
What are the Trends for the Future?
BMO’s GIC rates change with market trends and inflation. Since the 2020 fiscal year, following the pandemic, customers have seen significant changes in these rates. The bank serves over 12 million customers, contributing to its strong reputation. It is one of the top six banks in Canada.
BMO offers a range of banking products for small businesses, individuals, and commercial clients. Looking ahead, the bank is expected to continue increasing its overall revenue. Currently, BMO’s stock price is $78.07 per share, and both the share and stock price are likely to rise in the future.