Rates Are Rising Again, So Are GICs and High-Interest Savings ETFs Even Worth It?

On October 28, the Bank of Canada raised its policy rate to 2.5%, its first hike since July 2023.

A rate hike should be good news for savers holding cash, but GIC (Guaranteed Investment Certificate) rates barely moved.

Let’s see if it makes sense to increase exposure to GICs or a high-interest savings ETF (exchange-traded fund) like the Purpose High Interest Savings Fund (TSX: PSA) in November 2026 Why did the Bank of Canada raise rates in October 2026?

The Bank of Canada was forced to increase interest rates last month as inflation rose to 3.1% in September, primarily driven by higher energy prices.

If we exclude gasoline, inflation was much lower at 2.2%.

BoC now projects inflation to rise above 3% by the end of 2026 and remain elevated through 2027, which indicates that interest rates could move higher over the next 12 months.

Higher borrowing costs should keep expensive fuel from impacting prices across the economy.

What are the best GIC rates in Canada right now?

According to Ratehub’s November 5 update, the best five-year non-redeemable GIC pays 4.50%.

The one-year GIC rate offered by Achieva Financial is around 3.95%, versus 2.45% at the Royal Bank of Canada.

Oaken Financial offers a 4.5% yield on a five-year GIC versus 2.75% at RBC.

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