Deposit Rates Surge as Savings Rates Remain Flat

Despite the Bank of Canada holding its policy rate at 2.25 per cent last week, longer bond yields have climbed, pushing Government of Canada benchmark yields higher. The five-year yield reached 3.44 per cent on September 8, up from 3.33 per cent in late August.

Deposit rates have followed suit, with the largest increases at the long end. WealthOne's five-year GIC now pays the highest rate outside of short-term promotions, at 4.30 per cent, a 20 basis point increase from last month. Oaken and Saven are tied for second place at 4.25 per cent.

The higher rates apply to other terms as well: WealthOne and Haventree share the lead on three-year GICs with a rate of 4.05 per cent, while Haventree tops two-year GICs at 4.00 per cent. In contrast, savings rates have remained frozen, with no changes since last month.