GIC Calculator
Calculate guaranteed returns and compare GIC rates across Canadian banks
Calculate Returns
Your Guaranteed Return
Interest earned over 12 months
Current Best GIC Rates in Canada
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GIC Calculator Use Cases
Types of GICs
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
What is a GIC?
A Guaranteed Investment Certificate (GIC) is a secure investment that guarantees 100% of your principal and earns a fixed interest rate for a specific term (e.g., 1 year, 5 years). It is one of the safest ways to invest in Canada.
Are GICs safe?
Yes. GICs issued by CDIC-member institutions are eligible for deposit insurance coverage up to $100,000 per category. This means your principal and interest are protected even if the bank fails.
How is GIC interest calculated?
Interest is typically calculated daily but paid either annually or at maturity. For terms under 1 year, simple interest is usually paid at maturity. For multi-year terms, interest is often compounded annually.
GIC vs HISA: Which is better?
Choose a GIC if you can lock your money away for a higher, guaranteed rate. Choose a High Interest Savings Account (HISA) if you need flexibility and immediate access to your funds, accepting that the rate could change at any time.
What happens if I need my money early?
With a non-cashable GIC, you typically cannot access the funds before maturity. If the bank makes an exception for hardship, you will likely pay a significant penalty and forfeit interest. Cashable GICs allow early access but have lower rates.
Are GIC returns taxable?
Yes, interest earned on GICs in non-registered accounts is fully taxable at your marginal tax rate. GICs held in a TFSA are tax-free, and those in an RRSP are tax-deferred.