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Business Savings and GICs: Earn Interest on Your Idle Cash Reserves

Quick Overview — TD Business Central Savings Products

TD Business Central offers Canadian businesses a full spectrum of deposit products — from daily-access savings accounts to locked-in GICs with terms up to 5 years. Sweep account automation ensures idle operating funds earn interest without manual transfers. All eligible deposits are protected by CDIC insurance up to $100,000 per category. Whether you are parking $50,000 between payroll cycles or building a $2 million capital reserve for a future acquisition, TD Business Central provides the right vehicle to put your cash to work while keeping it secure.

Cash sitting in an operating account earning nothing is money your business is losing. Every dollar of idle cash has an opportunity cost — at current rates, a $500,000 balance left in a zero-interest chequing account represents over $20,000 in forgone annual interest that could be flowing to your bottom line.

TD Business Central savings products solve this problem without sacrificing liquidity or security. Business savings accounts provide same-day access to funds. GICs lock in guaranteed returns for defined periods. And sweep accounts automate the entire process so your treasury team can focus on decisions that matter instead of manually shuffling funds between accounts.

Business Savings Accounts for Every Cash Management Need

Not all idle cash has the same time horizon. Some funds need to be available tomorrow. Others can be set aside for months. TD Business Central offers tiered savings products to match different liquidity requirements.

Standard Business Savings Account

The workhorse of business cash management. No minimum balance. No monthly fees. Unlimited transfers to and from your linked operating account. Interest is calculated daily on the closing balance and paid monthly.

The standard business savings account is ideal for short-term cash parking — holding funds between payroll cycles, accumulating for quarterly tax remittances, or staging capital for an upcoming vendor payment. Access is instant through the TD Business Central dashboard, and transfers to your operating account process in real time during business hours.

While the interest rate on standard savings is lower than high-interest or GIC alternatives, the zero-restriction access makes it the default choice for cash that might be needed at any moment. Think of it as your financial buffer zone.

High-Interest Business Savings Account

For businesses maintaining larger cash reserves, the high-interest savings account delivers materially better returns. The trade-off is a $25,000 minimum balance requirement — fall below it and the rate drops to the standard tier for that month.

Interest rates on the high-interest account are benchmarked against the Bank of Canada policy rate and adjusted quarterly. As of March 2026, rates range from 3.50% to 4.00% depending on your total deposit relationship with TD Business Central.

Businesses with predictable cash reserves of $100,000 or more should consider splitting funds between a high-interest savings account and a GIC ladder. The savings account handles the liquid portion. The GIC ladder captures higher yields on funds that can be locked for 30 to 365 days.

Savings and GIC Products Comparison

The table below compares all TD Business Central deposit products, including rates, terms and access restrictions. Use this to identify the right mix of liquidity and yield for your business cash reserves.

Product Interest Rate Term Minimum Deposit Access CDIC Eligible
Business Savings Account 1.50% – 2.25% No lock-in $0 Anytime, unlimited transfers Yes
High-Interest Savings 3.50% – 4.00% No lock-in $25,000 Anytime, unlimited transfers Yes
30-Day GIC 3.75% 30 days $5,000 At maturity Yes
90-Day GIC 3.95% 90 days $5,000 At maturity Yes
1-Year GIC 4.25% 1 year $5,000 At maturity (cashable after 30 days) Yes
2-Year GIC 4.10% 2 years $5,000 At maturity only Yes
3-Year GIC 4.10% 3 years $5,000 At maturity only Yes
5-Year GIC 4.00% 5 years $5,000 At maturity only Yes
Jumbo GIC ($100K+) 4.35% – 4.60% 1 – 5 years $100,000 At maturity only Up to $100K per category

Rates are indicative as of March 2026 and subject to change. The CDIC provides detailed information on deposit insurance coverage limits and eligible deposit categories.

GIC Laddering and Term Deposit Strategies

A GIC ladder spreads your investment across multiple maturity dates, balancing yield with periodic liquidity. Instead of locking $500,000 into a single 5-year GIC, you split it into five $100,000 GICs maturing annually.

Building a GIC Ladder

Start with equal amounts across 1-year, 2-year, 3-year, 4-year and 5-year terms. Each year, one GIC matures. Reinvest the proceeds into a new 5-year GIC at the prevailing rate. After the initial setup period, you have one GIC maturing every 12 months while all your capital earns longer-term rates.

The beauty of this approach is optionality. When a GIC matures, you can reinvest, redirect funds to operations, or adjust the ladder based on changing rate expectations. If rates have risen, you capture the higher yield on reinvestment. If rates have fallen, your existing long-term GICs continue earning the higher locked-in rate.

TD Business Central automates GIC maturity notifications and reinvestment instructions through the account alerts system. Set up automatic reinvestment at maturity, or receive a notification 7 days before maturity to make an active decision.

Sweep Account Automation

For businesses that want to earn interest on idle cash without any manual intervention, sweep accounts provide a fully automated solution. Configure a target balance for your operating account. Every evening, excess funds above that target are swept into your linked high-interest savings account. When your operating balance drops below a minimum threshold, funds are automatically swept back.

The sweep mechanism ensures your operating account always has sufficient liquidity while maximizing the time your excess cash earns interest. A business maintaining an average excess balance of $200,000 that would otherwise sit in a zero-interest chequing account can earn $7,000 to $8,000 annually through automated sweeps alone.

Sweep account setup takes less than five minutes through the TD Business Central dashboard. Define your target balance, select the destination savings account, and the automation runs every business day without further intervention. View sweep activity through transaction history at any time.

CDIC Deposit Insurance Protection

Security is not just about cybersecurity. It includes knowing your deposits are protected if anything happens to the financial institution. TD Business Central deposits benefit from CDIC coverage — a federal Crown corporation that insures eligible deposits at member institutions.

Coverage Limits and Categories

CDIC protects eligible deposits up to $100,000 per depositor, per eligible deposit category. Separate categories include deposits in one name, joint deposits, deposits held in trust, and deposits in registered plans. A business with $400,000 in deposits could potentially be fully covered by structuring funds across eligible categories.

Eligible deposits include savings accounts, chequing accounts, GICs with terms of five years or less, and term deposits. Foreign currency deposits and GICs exceeding five years are not covered. TD Business Central advisors can help you structure deposits to maximize CDIC protection based on your specific situation.

What CDIC Does Not Cover

Understanding the boundaries of CDIC coverage is important for businesses with large cash positions. Deposits in foreign currencies are excluded, as are GICs with terms longer than five years. Money market funds, bonds, stocks and mutual funds are never covered, regardless of where they are held.

For businesses holding deposits exceeding CDIC limits, strategies include spreading deposits across multiple CDIC-member institutions, structuring deposits across eligible categories, or accepting the residual risk given that TD is designated a Domestic Systemically Important Bank (D-SIB) by OSFI, meaning it is subject to enhanced regulatory requirements including higher capital buffers.

Related Credit & Financing Services

Savings and GICs form the conservative anchor of your business capital structure. Combine with credit lines, term financing and corporate cards for comprehensive financial management.

Credit Lines

Balance your savings strategy with a revolving credit line for working capital flexibility. Earn interest on reserves while maintaining access to credit for unexpected needs.

Loans & Leases

Use accumulated savings as down payment capital for term loans and equipment leases. A larger down payment reduces borrowing costs and improves loan terms.

Business Credit Cards

Earn rewards on operational spending with TD Business Central corporate cards while your savings accounts and GICs earn interest on reserves. Both strategies put idle resources to work.

Frequently Asked Questions About Business Savings and GICs

The Business Savings Account has no minimum deposit requirement. The High-Interest Savings Account requires a $25,000 minimum balance to earn the posted rate. GICs start at a $5,000 minimum for standard terms. Jumbo GICs with enhanced rates require a minimum deposit of $100,000. There is no maximum deposit limit, though CDIC coverage applies up to $100,000 per eligible deposit category.

Cashable GICs allow early withdrawal after 30 days with no penalty, though the interest rate is lower than non-redeemable alternatives. Non-redeemable GICs are locked until maturity and generally cannot be cashed early except in cases of financial hardship, which require a formal request and may result in an interest rate reduction. If you anticipate needing access to funds, consider a GIC ladder strategy or a cashable GIC to balance liquidity with yield.

Business savings accounts calculate interest daily on the closing balance and pay it monthly. GICs compound interest annually for terms over one year, and pay interest at maturity for terms of one year or less. A 1-year GIC at 4.25% on a $100,000 deposit earns $4,250 at maturity. A 3-year GIC at 4.10% compounds annually, earning approximately $12,836 over the full term. The compounding frequency is specified in your GIC confirmation and cannot be changed after purchase.

Yes. Eligible deposits held at TD Business Central are protected by the Canada Deposit Insurance Corporation (CDIC) up to $100,000 per eligible deposit category. Business savings accounts and GICs with terms of five years or less qualify for CDIC coverage. Deposits in foreign currencies and GICs with terms exceeding five years are not covered. Businesses holding more than $100,000 can structure deposits across eligible categories to maximize coverage.

A sweep account automatically transfers excess funds from your operating account into a higher-interest savings account at the end of each business day. You set a target balance for your operating account, and any amount above that threshold is swept into savings. When your operating balance drops below a minimum threshold, funds are automatically swept back. This ensures idle cash earns interest without requiring manual transfers, and your operating account always maintains sufficient liquidity for daily transactions.

Put Your Idle Cash to Work Today

TD Business Central savings accounts and GICs are available to all TD commercial banking clients. Contact your advisor to discuss the right mix of savings products for your cash management needs and liquidity requirements.

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