🏦 Guaranteed Investment

GIC Calculator Canada

Calculate your exact interest earnings on any GIC or term deposit — and compare multiple terms side by side to find the best return for your money.

How GIC interest works in Canada

A Guaranteed Investment Certificate (GIC) pays a fixed interest rate for a set term — typically 30 days to 5 years. The key difference between GICs is how interest is compounded: annually compounded GICs pay significantly more than simple interest ones over the same term, even at the same advertised rate. This calculator shows your exact maturity value, total interest earned, and effective annual yield — then compares all common terms side by side so you can see at a glance where your money works hardest.

Your GIC
Principal Amount
The amount you're investing in the GIC. Most Canadian GICs have a minimum of $500–$1,000.
$0
$
Annual Interest Rate
The annual interest rate offered by the financial institution. Shop around — credit unions and online banks often beat the big 5.
4.25%
Term
How long you'll lock in your money. Longer terms often (but not always) offer higher rates.
Compounding
How often interest is calculated and added to your balance. Annually compounded GICs earn more than simple interest ones at the same rate.
💡 Most Canadian GICs over 1 year compound annually — but always confirm with your institution before investing.
Account Type
GICs held in a TFSA or RRSP shelter the interest from tax. Non-registered GICs are fully taxable as income each year.
Marginal Tax Rate
GIC interest in non-registered accounts is taxed as income each year — even if you don't receive it until maturity. Use your combined federal + provincial marginal rate.
43%
Maturity Value
$0
After 1 year
Principal $0
Total Interest Earned $0
Annual Yield
The true annualized return after accounting for compounding frequency. Always higher than the stated rate when compounding more than once per year.
 0%
Estimated Tax Owing $0
After-Tax Interest $0
Monthly Interest Equivalent $0
Term Comparison
How your $50,000 grows at 4.25% — annually compounded
Term Interest Earned Maturity Value Annual Yield

🏦 Shop Beyond the Big 5

Credit unions and online banks like EQ Bank, Oaken Financial, and Achieva Financial regularly offer GIC rates 0.5–1.5% higher than the major banks. On a $50,000 GIC, that's an extra $250–$750 per year.

💰 Use Your TFSA First

GIC interest is fully taxable as income in a non-registered account — even before you receive it. Holding your GIC inside a TFSA eliminates the tax entirely, which can make a significant difference at higher marginal rates.

📅 GIC Laddering

Instead of locking everything in for 5 years, split your money across 1, 2, 3, 4, and 5-year GICs. Each year one matures and you reinvest at current rates — giving you flexibility without sacrificing too much yield.

🛡️ CDIC Insurance

GICs at CDIC member institutions are insured up to $100,000 per depositor per category (non-registered, TFSA, RRSP are separate categories). Amounts above $100K in one category are uninsured.

Frequently asked questions

A Guaranteed Investment Certificate (GIC) is a low-risk savings product offered by Canadian banks and credit unions. You deposit a fixed amount for a set term (typically 30 days to 5 years) and earn a guaranteed interest rate. At maturity you receive your original deposit plus all interest earned. Your principal is protected — you cannot lose money on a GIC held to maturity.

Yes — GICs at CDIC member institutions are insured up to $100,000 per depositor per category. This covers GICs with terms of 5 years or less. Credit union GICs are covered by provincial deposit insurance, which varies by province but often has higher or unlimited coverage. Always confirm coverage limits with your institution.

Yes — GIC interest earned outside a registered account (TFSA or RRSP) is fully taxable as regular income in the year it's earned or accrued, even if the GIC hasn't matured yet. Holding a GIC inside a TFSA shelters all interest from tax permanently. Inside an RRSP, tax is deferred until withdrawal.

A cashable GIC lets you withdraw your money before maturity (usually after a short lock-in period of 30–90 days), typically at a slightly lower rate. A non-redeemable GIC locks your money in for the full term but offers a higher rate. If you might need access to the funds before the term ends, a cashable GIC is worth the rate trade-off.

GIC compounding frequency varies by product. Many pay interest annually (reinvested each year), while others offer semi-annual, monthly, or even daily compounding. Some GICs pay interest to a separate account monthly rather than compounding it — useful for income but produces slightly less total interest than reinvesting. The calculator above shows your exact maturity value based on the compounding option you select.

GIC laddering means spreading your investment across multiple terms (e.g., 1, 2, 3, 4, and 5-year GICs). As each one matures, you reinvest at the current rate. Benefits include regular access to a portion of your money, averaging out interest rates over time, and avoiding locking everything in at a low rate. It's a popular strategy for retirees and conservative investors.