Santander Consumer Bank, a unit of Grupo Santander, has started offering Guaranteed Investment Certificates (GICs) in Canada. This move marks an expansion of the bank’s services in the country, where it has been active for more than a decade through its auto and recreational vehicle financing business.
The GICs are available with terms ranging from one to five years and require a minimum investment of CAD 5,000. Deposits made into these certificates are insured by the Canada Deposit Insurance Corporation (CDIC) up to CAD 100,000. These products do not permit early redemption or automatic renewal.
Distribution of the new GICs is being handled via the CANNEX GIC Exchange, which is one of Canada's primary financial distribution platforms. This gives brokers and financial advisors direct access to Santander’s offerings for their clients.
According to Santander, “Santander Consumer Bank, Grupo Santander’s consumer banking unit in Canada, has begun offering Guaranteed Investment Certificates (GICs), marking a new milestone in the Group’s expansion and diversification in North America.”
In March of this year, Santander received a banking license to operate as a full-service bank in Canada. The launch of GICs is part of its strategy to increase deposit-taking activities that will support growth in its consumer finance operations.
Santander Consumer Bank is part of Digital Consumer Bank, which manages auto financing and consumer lending across 26 countries with significant operations in Europe, North America, and South America.
Additionally, over the past year Santander launched Openbank—its digital-first bank—in the United States. Openbank has attracted more than $6 billion in customer deposits since its introduction.
With these steps, Santander aims to strengthen its position within North America and expand its product offerings for Canadian customers.