GIC Calculator
Guaranteed Investment Certificates are the classic safe Canadian savings vehicle. Enter your principal, rate and term to see the final value, the interest earned, and what's left after tax.
How to use this calculator
- Enter amount to invest.
- Enter interest rate.
- Enter term.
- Enter compounding frequency.
- Enter your marginal tax rate (for after-tax view).
- Your results appear instantly below and update as you change the numbers.
How this calculator works
A GIC pays a fixed interest rate for a fixed term. This calculator compounds the interest at the frequency the institution offers (annual, semi-annual, quarterly or monthly), then shows the effective annual yield — a 4.5% rate compounded monthly is really a 4.594% annual yield — and the tax bill, because GIC interest is fully taxable as interest income in Canada. Worked example: $10,000 at 4.5% for 5 years compounded annually grows to about $12,462. Of the $2,462 of interest, roughly $615 goes to tax at a 25% marginal rate, leaving about $11,846. Put the same GIC inside a TFSA and the tax line disappears entirely. Deposits are CDIC-insured up to $100,000 per institution.
Frequently asked questions
Is GIC interest taxable in Canada?
Yes — GIC interest is fully taxable as interest income at your marginal rate, even if you don't receive it until maturity (for terms over a year, the interest is taxable each year as it accrues). Holding a GIC inside a TFSA or RRSP removes the tax; a cash GIC outside a registered account is taxed annually.
What is the difference between redeemable and non-redeemable GICs?
Non-redeemable GICs lock your money for the full term — cashing out early usually forfeits all accrued interest and may require the bank's permission. Cashable (redeemable) GICs let you withdraw anytime, typically at a lower rate. Rates on non-redeemable GICs are almost always higher; the calculator assumes you hold to maturity.
How is a GIC different from a high-interest savings account?
A savings account pays interest with no lock-in and no term — you can move money anytime. A GIC trades that liquidity for a guaranteed, usually higher rate over a fixed term. Both are CDIC-insured to $100,000 and both pay taxable interest, so the choice comes down to whether you can afford to lock the money away.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect the current tax year and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: canada.ca tax rates · CPP rates · CMHC mortgage insurance.