GIC Calculator 2026

A Guaranteed Investment Certificate (GIC) is a low-risk Canadian investment where you deposit money for a fixed term, from 3 months to 10 years, in exchange for a guaranteed interest rate. Your principal is protected and, at eligible institutions, insured by CDIC.

Eligible GIC deposits at CDIC member institutions are insured up to $100,000 per depositor, per insured category, per institution. This calculator's CDIC coverage figure applies only to this single GIC — other eligible deposits at the same bank count toward the same $100,000 limit.

Interest earned on a GIC held in a taxable (non-registered) account is fully taxed as regular income at your marginal tax rate — unlike capital gains or dividends, it does not receive a preferential rate. GICs held in a TFSA or RRSP are not taxed while the funds remain in the account.

Non-redeemable GICs lock in your funds until maturity. Cashable (redeemable) GICs allow early withdrawal, usually at a lower interest rate, and some issuers may require a minimum holding period or charge a reduced-interest penalty for early access.

More frequent compounding (monthly or quarterly rather than annual) grows the effective return slightly, since interest is credited and starts earning interest itself sooner. The difference is small over short terms but becomes more noticeable on longer, larger GICs.