GIC Ladder Calculator Canada
Build a 3, 4, or 5-year GIC ladder with live Canadian bank rates. Maximize your guaranteed interest while unlocking cash every single year.
Your Ladder Rungs Breakdown
| Rung | Term | Deposit | Bank & Rate | Maturity Date | Interest Earned | Maturity Value |
|---|---|---|---|---|---|---|
| Rung 1 | 1 Year | $5,000.00 | 3.80%Saven Financial | October 2027 | +$190.00 | $5,190.00 |
| Rung 2 | 2 Years | $5,000.00 | 4.25%Saven Financial | October 2028 | +$434.03 | $5,434.03 |
| Rung 3 | 3 Years | $5,000.00 | 4.30%Oaken Financial | October 2029 | +$673.13 | $5,673.13 |
| Rung 4 | 4 Years | $5,000.00 | 4.35%Oaken Financial | October 2030 | +$928.43 | $5,928.43 |
| Rung 5 | 5 Years | $5,000.00 | 4.50%Oaken Financial | October 2031 | +$1,230.91 | $6,230.91 |
How Your Ladder Operates (Rolling Strategy)
How a 5-Year GIC Ladder Works in Canada
A GIC ladder is one of the most effective low-risk investment strategies available to Canadian savers. Instead of investing all your money into a single 1-year GIC (which often pays lower rates) or locking everything into a 5-year GIC (which prevents access to your cash for half a decade), a ladder divides your deposit into five equal slices:
When the 1-year GIC reaches maturity, you reinvest the proceeds into a new 5-year GIC. The following year, the 2-year GIC matures and is likewise rolled into a new 5-year GIC. After four years of rollovers, every single dollar in your portfolio is earning the highest 5-year GIC rate, but exactly 20% of your money matures every 12 months.
Guaranteed Liquidity
Never get trapped by early withdrawal penalties. With 20% maturing annually, you always have cash on hand for life events, emergencies, or market opportunities.
Interest Rate Hedging
If Bank of Canada interest rates rise, you have capital ready to capture higher yields each year. If rates fall, your remaining rungs remain locked in at peak rates.
CDIC Insured Safety
Principal and interest are 100% guaranteed up to $100,000 per institution by the Canada Deposit Insurance Corporation (CDIC) or provincial credit union insurance.
GIC Laddering Frequently Asked Questions
Practical rules, tax considerations, and liquidity guidelines for GIC ladders in Canada.
What is a GIC ladder?
A GIC ladder is an investment strategy where you divide your total investment into equal parts across multiple GICs with staggered maturity terms (typically 1, 2, 3, 4, and 5 years). Each year, one GIC matures, providing liquidity or the opportunity to reinvest at current 5-year rates.
Why is a 5-year GIC ladder better than a single GIC?
A 5-year GIC ladder gives you the best of both worlds: you earn higher long-term interest rates typically associated with 5-year GICs, while avoiding the drawback of having all your funds locked away. Every 12 months, 20% of your portfolio becomes liquid.
What happens when a rung matures in a GIC ladder?
When a rung matures (for instance, your 1-year GIC at the end of Year 1), you take the principal plus interest and reinvest it into a brand new 5-year GIC. By repeating this annually, your entire portfolio eventually earns 5-year rates while maintaining annual liquidity.
Can I build a GIC ladder inside a TFSA or RRSP?
Yes. GIC ladders can be held inside Tax-Free Savings Accounts (TFSA) for completely tax-free interest, or Registered Retirement Savings Plans (RRSP) for tax-deferred growth. Non-registered ladders are subject to annual income tax on the interest earned.
What happens if interest rates drop during my ladder?
If interest rates decline, a GIC ladder protects you because 80% of your money remains locked in at the higher, older rates. You only have to reinvest 20% of your portfolio at the newer, lower rate in any given year.
Looking for More GIC & Savings Tools?
Compare all GIC rates across Canada or calculate monthly retirement income.