GIC Calculator Canada
Calculate guaranteed returns, build a 5-year ladder, and compare GIC rates across Canadian banks
GIC Return Parameters
Earned on $10,000 at 3.50% over 12 months (compounded annually)
Current Best GIC Rates in Canada (October 2026)
Guaranteed returns backed by CDIC deposit insurance. Compare rates across terms.
Bank | 1 Year | 2 Year | 3 Year | 5 Year | CDIC | Action |
|---|---|---|---|---|---|---|
Saven Financial$1,000 min | 3.80%Top | 4.25%Top | 4.30%Top | 4.50%Top | $100k | |
Oaken Financial$1,000 min | 3.75% | 4.20% | 4.30%Top | 4.50%Top | $100k | |
EQ Bank$100 min | 3.70% | 4.00% | 4.15% | 4.30% | $100k | |
Tangerine | 3.60% | 3.85% | 4.10% | 4.25% | $100k | |
Simplii Financial$100 min | 3.60% | 3.60% | 3.70% | 4.25% | $100k | |
BMO$1,000 min | 3.00% | 3.20% | 3.30% | 3.55% | $100k | |
Scotiabank$500 min | 2.45% | 2.50% | 2.60% | 2.75% | $100k | |
RBC$500 min | 2.45% | 2.55% | 2.55% | 2.75% | $100k | |
CIBC$1,000 min | 2.45% | 2.55% | 2.60% | 2.75% | $100k |
GIC Early Withdrawal Penalty Calculator
Estimate forfeited interest and net cash payout if you need to cash in a GIC before maturity.
GIC Calculator Use Cases
Select a common scenario to auto-configure terms and deposits
How GIC Interest Is Calculated
GIC interest calculations depend primarily on whether the term is shorter than one year or spans multiple years:
Short-Term GICs (Under 1 Year)
Calculated using simple daily interest on a 365-day basis and paid out in full upon maturity.
Long-Term GICs (1 to 5+ Years)
Compounded annually so interest earned each year is automatically reinvested to compound further.
Types of GICs in Canada
Choose the right deposit structure for your timeline and cash accessibility needs:
Non-Cashable GIC
Offers the highest interest rates but your money is fully locked until maturity. Best for long-term goals where you won't need access to the funds.
Cashable GIC
Allows you to withdraw your money early (usually after a 30-day waiting period), but offers lower interest rates than non-cashable options.
Market-Linked GIC
Principal is protected, but returns are tied to stock market performance. Potential for higher returns, but no guarantee of interest.
Registered GICs (TFSA/RRSP)
GICs held within registered accounts. TFSA GIC returns are tax-free, while RRSP GICs are tax-deferred until withdrawal.
Frequently Asked Questions
Essential answers on Canadian GIC interest payout terms, CDIC insurance coverage, and early redemption rules.
What is the best GIC rate in Canada right now?
As of October 22, 2026, the highest 1-year GIC rate in Canada is 3.80% available from Saven Financial. Posted 2- to 5-year GIC rates in our table range from 2.50% to 4.50%, all backed by CDIC or provincial credit union deposit insurance.
How does a GIC ladder work?
A GIC ladder splits your savings evenly across different terms (such as 1, 2, 3, 4, and 5 years). Each year, one rung matures and provides cash liquidity or can be rolled into a new 5-year GIC. This strategy combines the higher yields of 5-year GICs with predictable annual access to your funds.
What is an Income Builder GIC?
An Income Builder GIC (such as the RBC Income Builder GIC or BMO Income Generator) is a specialized payout GIC that distributes automated monthly or quarterly income to your account. You can choose to draw down your principal over time or preserve it to receive as a lump sum at maturity.
How is GIC interest calculated?
For terms under 1 year, simple interest is calculated daily and paid at maturity: Interest = Principal × Rate × (Days / 365). For terms of 1 year or longer, interest typically compounds annually: Total = Principal × (1 + Rate)^Years.
GIC vs HISA: Which is better?
Choose a GIC if you want guaranteed returns and do not need to access your money during the term. Choose a High Interest Savings Account (HISA) if you need the flexibility to deposit or withdraw funds at any time, accepting that variable rates can fluctuate.
What is the penalty for early GIC withdrawal?
For non-redeemable (non-cashable) GICs, early withdrawals are generally not permitted except under extraordinary circumstances (such as proven financial hardship or estate settlement). When an exception is granted, banks typically forfeit 100% of interest accrued to date. Cashable GICs permit redemption after an initial 30-day closed window at a reduced interest rate.
Are GIC returns taxable in Canada?
Yes. GIC interest earned in non-registered accounts is 100% taxable at your regular marginal income tax rate. GICs held inside a TFSA are completely tax-free, while GICs in an RRSP or RRIF are tax-deferred until withdrawn.