Retail deposit rates in Canada are rising even as guaranteed investment certificate (GIC) yields remain flat, marking a shift in how banks are competing for consumer cash.
While top GIC rates have held unchanged for two weeks, lenders including WealthOne Bank and Manulife have increased returns on regular savings accounts, according to a report from The Globe and Mail.
The move contrasts with trends in other markets, such as the UK, where major high street banks have kept easy-access savings rates near 1% despite record profits.
The divergence suggests banks are prioritizing liquidity and flexible deposits over locked-in term products.
By boosting rates on easy-access accounts, institutions can secure funding without the long-term interest rate risk associated with multi-year GICs.
This strategy allows lenders to adjust their cost of funds more quickly if monetary policy shifts.
The move contrasts with trends in other markets, such as the UK, where major high street banks have kept easy-access savings rates near 1% despite record profits.