GIC Income Payout Calculator
Calculate predictable monthly or quarterly cash flow. Model products like the RBC Income Builder GIC and BMO Income Generator.
Payment & Drawdown Schedule
| Period | Payout Received | Interest Earned | Principal Drawn | Remaining Balance |
|---|---|---|---|---|
| Yr 1, M1 | $1,819.17 | +$291.67 | -$1,527.51 | $98,472.49 |
| Yr 1, M2 | $1,819.17 | +$287.21 | -$1,531.96 | $96,940.53 |
| Yr 1, M3 | $1,819.17 | +$282.74 | -$1,536.43 | $95,404.10 |
| Yr 1, M4 | $1,819.17 | +$278.26 | -$1,540.91 | $93,863.19 |
| Yr 1, M5 | $1,819.17 | +$273.77 | -$1,545.41 | $92,317.78 |
| Yr 1, M6 | $1,819.17 | +$269.26 | -$1,549.91 | $90,767.86 |
| Yr 1, M7 | $1,819.17 | +$264.74 | -$1,554.43 | $89,213.43 |
| Yr 1, M8 | $1,819.17 | +$260.21 | -$1,558.97 | $87,654.46 |
| Yr 1, M9 | $1,819.17 | +$255.66 | -$1,563.52 | $86,090.94 |
| Yr 1, M10 | $1,819.17 | +$251.10 | -$1,568.08 | $84,522.87 |
| Yr 1, M11 | $1,819.17 | +$246.53 | -$1,572.65 | $82,950.22 |
| Yr 1, M12 | $1,819.17 | +$241.94 | -$1,577.24 | $81,372.98 |
How Payout GICs & RBC Income Builder Work
If you are approaching retirement or living on fixed savings, locking your capital into an ordinary GIC can feel restrictive because you cannot access cash until the term expires. Payout GICs solve this dilemma by converting a lump-sum deposit into regular monthly or quarterly income.
The two most well-known examples in Canada are the RBC Income Builder GIC and the BMO Income Generator GIC. Unlike conventional GICs that compound all interest to the end, these structured products give you full control over two key levers:
- Payment Frequency: Choose whether you want distributions deposited monthly or quarterly into your chequing account.
- Capital Retention: Choose whether you want to preserve your initial principal (receiving interest only) or draw down a portion of your principal over time (receiving substantially higher monthly cheques, with remaining capital paid out at maturity).
RBC Income Builder GIC
Available in terms from 1 to 5 years with a $5,000 minimum deposit. You select the percentage of original principal you wish to retain (e.g. 0% to 90%). Payments are direct-deposited monthly or quarterly with guaranteed fixed returns.
CDIC Insured • Fixed Rate • Predictable CashBMO Income Generator
Designed specifically for RRIF accounts and non-registered retirement portfolios. Offers flexible terms from 1 to 10 years, blending interest earnings with scheduled capital decumulation for predictable monthly budgeting.
CDIC Insured • Term 1-10 Yrs • Monthly PayoutsFrequently Asked Questions
Key questions on payout mechanics, taxation, and CDIC deposit insurance for Canadian income GICs.
What is an Income Builder GIC or Payout GIC?
An Income Builder GIC (most famously offered by RBC Royal Bank as the RBC Income Builder GIC, and BMO as the Income Generator GIC) is a specialized non-redeemable GIC designed for retirees and income-seeking investors. Rather than compounding interest until maturity, it distributes regular monthly or quarterly payments made up of guaranteed interest and an optional portion of your principal.
How does an Income Builder GIC differ from a regular GIC?
A regular GIC locks your money away and pays all interest and principal at maturity (or pays simple annual interest). An Income Builder GIC provides a steady stream of automated monthly deposits into your bank account, acting like an annuity while retaining deposit insurance and a guaranteed maturity value.
Can I choose how much principal remains at maturity?
Yes. With products like the RBC Income Builder GIC and BMO Income Generator, you can choose to fully amortize the balance (leaving $0 at maturity for maximum monthly income) or choose a percentage (e.g. 50% or 90%) to retain as a lump-sum payout when the term ends.
Are Income Builder GIC payments taxable in Canada?
Only the interest portion of each payment is taxable income if held in a non-registered account (the principal drawn down is your own after-tax capital returning to you). If held within a TFSA, 100% of payments are tax-free. If held in an RRIF or RRSP, payments are taxed as regular retirement income.
Are Payout GICs CDIC insured?
Yes, GICs issued by CDIC-member institutions (like RBC, BMO, TD, CIBC, Scotiabank) are eligible for CDIC deposit insurance up to $100,000 per insured category.
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