What is a GIC in Canada?
A Guaranteed Investment Certificate (GIC) is a secure Canadian investment that pays a guaranteed interest rate over a fixed term, typically 1 to 5 years. Your principal is protected and returns are guaranteed.
Last updated
GIC Calculator Canada 2026
Project GIC growth with tax treatment for Non-Registered, TFSA, and RRSP
Non-Registered TFSA & RRSP Free
Interest is taxed annually at your marginal rate (simplified).
Term
Compare terms at the same rate
Uses your principal, rate, and compounding choice for each term length.
| Term | Maturity | Interest | After-tax total |
|---|---|---|---|
| 1yr | $10,450.00 | $450.00 | $10,315.00 |
| 2yr | $10,920.25 | $920.25 | $10,644.18 |
| 3yr | $11,411.66 | $1,411.66 | $10,988.16 |
| 4yr | $11,925.19 | $1,925.19 | $11,347.63 |
| 5yr | $12,461.82 | $2,461.82 | $11,723.27 |
Maturity value
$11,411.66
Interest earned$1,411.66
After-tax interest$988.16
Total after tax$10,988.16
Effective annual yield3.19%
Principal vs interest
Principal 87.6%
Interest 12.4%
Educational estimates only. Institutions may compound differently, apply minimums, or use day-count conventions not modeled here. Not financial advice.
Project how a Guaranteed Investment Certificate grows to maturity with your rate and compounding choice. Switch between non-registered, TFSA, and RRSP to see simplified tax treatment, then compare 1- through 5-year terms at the same rate in the table inside the calculator.
GIC rates by term (2026)
Illustrative ranges only — actual posted rates change with the Bank of Canada, institution, and promotions.
| Term | Typical rate range (illustrative) |
|---|---|
| 1 year | ~4.0% – 5.0% |
| 2 years | ~3.8% – 4.8% |
| 3 years | ~3.7% – 4.6% |
| 4 years | ~3.6% – 4.5% |
| 5 years | ~3.5% – 4.4% |
Rates vary by institution. Compare before investing.
TFSA vs RRSP vs non-registered GIC
| Account type | Tax on interest | Contribution limit | Best for |
|---|---|---|---|
| Non-registered | Taxed annually as income | No registered limit | Room maxed in TFSA/RRSP or short-term savings |
| TFSA | Tax-free growth & withdrawals (if rules met) | Annual TFSA dollar limit (carryforward) | Emergency fund, medium-term goals, tax-free compounding |
| RRSP | Tax-deferred until withdrawal | 18% of earned income room (carryforward) | Retirement savings, high marginal rate today |
What is GIC laddering?
Instead of locking the entire amount in one 5-year GIC, you split it across 1-, 2-, 3-, 4-, and 5-year terms. Each year one rung matures, so you regain liquidity on that slice while the rest keeps earning. When a rung matures, you can reinvest at then-current rates — useful when rates move up or down. The comparison table in the calculator helps you preview how each term pays at a single assumed rate.
Frequently asked questions
Are GIC returns taxable in Canada?
GIC interest earned in a non-registered account is taxed as income at your marginal rate. GICs held in a TFSA grow tax-free. GICs in an RRSP are tax-deferred until withdrawal.
What is a good GIC rate in Canada in 2026?
GIC rates in Canada vary by institution and term. In 2026, competitive 1-year GIC rates typically range from 3.5% to 5.0%. Longer terms may offer higher or lower rates depending on the interest rate environment.
What is GIC laddering?
GIC laddering means spreading your investment across multiple terms (e.g. 1, 2, 3, 4, and 5 years) so that a portion matures each year, giving you regular access to funds while still earning competitive rates.
Related calculators
Educational estimates only. Not financial advice.