Calculate the maturity value and total interest earned on a Canadian Guaranteed Investment Certificate. Enter your investment amount, interest rate, term, and compounding frequency to see year-by-year growth.
How this GIC calculator works
This calculator uses the compound interest formula to project your GIC’s maturity value:
A = P × (1 + r/n)^(n×t)
Where:
- A = Maturity value
- P = Principal (amount invested)
- r = Annual interest rate (as a decimal)
- n = Compounding frequency per year
- t = Term in years
The compounding frequency affects your total return. More frequent compounding produces slightly more interest because earned interest begins earning additional interest sooner.
GIC compounding frequency comparison
How compounding frequency affects a $10,000 GIC at 4.50% over 5 years:
| Compounding | Maturity Value | Total Interest |
|---|---|---|
| Annually | $12,461.82 | $2,461.82 |
| Semi-Annually | $12,488.63 | $2,488.63 |
| Quarterly | $12,502.32 | $2,502.32 |
| Monthly | $12,511.33 | $2,511.33 |
| Daily | $12,520.18 | $2,520.18 |
The difference between annual and daily compounding on $10,000 over 5 years is about $58 — meaningful but not dramatic. Most Canadian GICs compound annually.
Current GIC rates in Canada (2026)
GIC rates fluctuate with the Bank of Canada’s policy rate. For the most current rates, see our GIC Rates comparison page.
| Term | Typical Rate Range |
|---|---|
| 1 Year | 3.50% – 4.75% |
| 2 Year | 3.25% – 4.50% |
| 3 Year | 3.25% – 4.25% |
| 5 Year | 3.25% – 4.25% |
Rates are approximate and vary by institution. Online banks and credit unions often offer higher rates than big banks.
Types of GICs in Canada
Non-redeemable GICs
The most common type. Your money is locked in for the full term and cannot be withdrawn early. In exchange, you receive a higher interest rate.
Cashable / redeemable GICs
Can be cashed before maturity, usually after a short initial lock-up period (e.g., 30-90 days). Interest rates are typically lower than non-redeemable GICs.
Market-linked GICs
Returns are tied to the performance of a stock market index. Your principal is guaranteed, but the interest portion varies — you could earn zero interest if the index declines. Upside is typically capped.
Escalating rate GICs
The interest rate increases each year over the term. For example: 3.00% in year 1, 4.00% in year 2, 5.00% in year 3. This encourages holding to maturity.
GIC ladder strategy
A GIC ladder is a technique to balance higher long-term rates with regular access to funds:
- Divide your total investment into equal portions
- Invest each portion in different terms (1, 2, 3, 4, 5 years)
- When the 1-year GIC matures, reinvest at the 5-year rate
- Repeat each year — you always have one GIC maturing annually
Example with $50,000:
| Year | Amount | Term | Rate |
|---|---|---|---|
| 2026 | $10,000 | 1 year | 4.50% |
| 2026 | $10,000 | 2 year | 4.25% |
| 2026 | $10,000 | 3 year | 4.00% |
| 2026 | $10,000 | 4 year | 3.75% |
| 2026 | $10,000 | 5 year | 3.50% |
After year 1, the 1-year GIC matures and you reinvest at the 5-year rate. Every year after that, you have $10,000 available if needed.
CDIC deposit insurance
The Canada Deposit Insurance Corporation (CDIC) protects eligible deposits at member institutions:
| Category | Coverage Limit |
|---|---|
| Deposits in your name | $100,000 |
| Joint deposits | $100,000 |
| RRSP deposits | $100,000 |
| TFSA deposits | $100,000 |
| RRIF deposits | $100,000 |
| FHSA deposits | $100,000 |
Each category is insured separately. A couple could have up to $600,000+ insured at a single CDIC member institution by using different categories.
GICs vs other investments
| Feature | GIC | Savings Account | Bonds | ETFs |
|---|---|---|---|---|
| Principal guaranteed | Yes | Yes | No (market risk) | No |
| CDIC insured | Yes | Yes | No | No |
| Liquidity | Low (locked in) | High | Medium | High |
| Typical return | 3–5% | 1–4% | 3–6% | 5–10% |
| Tax treatment | Interest income | Interest income | Interest/capital gains | Mixed |
GICs are ideal for the fixed income portion of your portfolio, emergency fund backstop, or short-term savings goals where you cannot afford to lose principal.
Tax implications of GIC interest
GIC interest earned in a non-registered account is taxed as regular income at your marginal rate — the highest tax rate among investment income types in Canada:
| Income Type | Tax Rate |
|---|---|
| Interest (GIC) | 100% of marginal rate |
| Capital gains | 50% of marginal rate |
| Canadian dividends | Reduced by dividend tax credit |
This is why many advisors recommend holding GICs inside tax-sheltered accounts like a TFSA or RRSP. Use the Income Tax Calculator to see your marginal rate.
Related calculators
- Compound Interest Calculator — Calculate compound growth on any investment
- Simple Interest Calculator — Calculate interest using the simple interest formula
- TFSA Calculator — Hold GICs tax-free inside your TFSA
- RRSP Calculator — Hold GICs with tax-deferred growth in your RRSP
- Investment Calculator — Compare GIC returns to other investment options
- Inflation Calculator — Check if your GIC rate beats inflation
- FHSA Calculator — Save for a home with tax-sheltered GICs
Looking for higher returns than a GIC?
While GICs offer guaranteed returns, low-cost ETFs have historically provided significantly higher long-term growth. You can start investing commission-free and get a $25 bonus when you open an account. Learn how to buy your first ETF in our step-by-step guide.