Terms and conditions apply; rates are per annum and subject to change without notice. Eligible for CDIC deposit insurance. Non-Registered rates are tiered and based on your balance. 3.00% applies to deposits of $25,000 or more. See WealthONE website for current rates and applicable balance tiers. Highest rate in Canada for non-promotional HISA accounts, as confirmed by WOWA.ca as of June 25, 2026.
GIC Calculator
| End of Year | Balance | Initial Investment | Interest Earned |
|---|---|---|---|
| 0 | $100,000 | $100,000 | $0 |
| 1 | $103,000 | $100,000 | $3,000 |
| 2 | $106,090 | $100,000 | $6,090 |
| 3 | $109,273 | $100,000 | $9,273 |
| 4 | $112,551 | $100,000 | $12,551 |
| 5 | $115,927 | $100,000 | $15,927 |
Historical GIC Interest Rates
By Term Length, Non-Redeemable GICs
Types of GICs
While all GICs are generally safe, low-risk assets, they are not all created equal. In Canada, GICs are categorized by how flexible they are with your cash (liquidity), how they calculate your returns, their term, their currency and their tax treatment.
Cashable GIC, Redeemable GIC, and Non-Redeemable GIC
The biggest trap investors fall into is choosing the wrong liquidity tier. There are actually three distinct types of GICs based on how easily you can get your money back before the term ends:
- Cashable GICs (Maximum Flexibility): These allow you to withdraw your money early with absolutely no penalty, usually after an initial 30-day waiting period. Because they offer total freedom, they pay the lowest interest rates.
- Redeemable GICs (The Middle Ground): You are permitted to cash these out early, but you will pay a penalty in the form of a "reduced interest rate" for the time you held it. They offer mid-range interest rates.
- Non-Redeemable GICs (The Lockbox): You promise to leave your money untouched for the entire term. In exchange for locking it away, you receive the bank's highest interest rates.
Fixed Rate vs. Variable & Market-Linked
Once you know how long you can lock your money away, you need to decide how you want your interest to be calculated:
- Fixed-Rate GICs (Guaranteed & Predictable): You lock in a specific interest rate for the entire life of the investment. You know exactly how much money you will make down to the penny on day one, making these perfect for budgeting and low-risk planning.
- Variable-Rate GICs (Prime-Linked): Your interest rate is tied to your bank's Prime Rate. If the central bank raises or lowers interest rates, your GIC return will fluctuate accordingly. This is not a very common product in the Canadian banking landscape.
- Market-Linked GICs (Equity-Tied): Your returns are tied to the performance of a stock market index (like the S&P/TSX 60). Your original principal investment is still 100% legally guaranteed, but your interest is a gamble. If the market crashes, you might earn 0% interest; if the market skyrockets, you will earn a higher return, though the bank usually caps your maximum possible profit.
Short-Term vs. Long-Term
GICs also vary in terms of maturity dates. Short-term GICs have maturity dates typically one year or less, while long-term GICs have maturity dates greater than one year. Long-term GICs, such as 5-year GICs, usually offer higher interest rates than short-term GICs, such as 1-year GICs, but they also tie up your money for a more extended period.
Foreign Currency
Foreign currency GICs earn interest in a foreign currency. This type of GIC can be helpful for investors who want to diversify their portfolios or hedge against currency risk. For example, if you think the Canadian dollar will decline in value, you could invest in a foreign currency GIC denominated in US dollars. If the Canadian dollar declines in value, your investment will be worth more in Canadian dollars.
Registered vs. Non-Registered GICs (The Tax Implications)
- Tax-Free Savings Accounts (TFSAs) & RRSPs: Choosing a Registered GIC means your interest grows entirely tax-free or tax-deferred.
- Non-Registered Accounts: Any interest you earn is treated as regular income (not capital gains) and is taxed at your marginal tax rate. If you are in a high tax bracket, the CRA will take a significant bite out of your total return.
Terms and conditions apply. Rates are per annum and subject to change without notice. Eligible for CDIC deposit insurance. See WealthONE's website for current rates and applicable balance tiers. Highest rate in Canada for RRSP HISA accounts, as confirmed by WOWA as of July 24 2026
FAQ
How to Calculate GIC Interest (Payout Options)
When you buy a GIC with a term longer than one year, you generally have to choose how you want your interest delivered:
- Paid Out Regularly (Simple Interest): The bank deposits your interest earnings directly into your chequing or savings account every month or every year. Because the money leaves the GIC, your principal remains the same, and you do not earn interest on your interest.
- Paid at Maturity (Compound Interest): You leave the interest inside the GIC, allowing it to compound and grow your balance over time until the term ends.
If you choose to have your interest paid out as regular income, you can calculate your payouts using simple interest math:
1. Annual Payout Formula
If you choose to receive your interest once a year, the math is straightforward:
Example: If you invest $10,000 in a 3-year GIC at a 4% interest rate and select annual payouts, the bank will send you exactly $400 ($10,000 × 0.04) every year. Your total principal remains $10,000.
2. Monthly Payout Formula
If you want to use your GIC as a monthly income stream, the bank takes your annual earnings and divides them by 12:
Example: Using that same $10,000 GIC at 4%, your monthly payout would be $33.33 ($400 / 12) every month for the duration of the term.
Note: Banks may calculate monthly payouts using a day-count fraction (exact days in the month / 365), so your actual monthly deposit may fluctuate slightly depending on the length of the month.
What if I want my interest to grow?
If you don't need the regular cash flow and prefer to let your money snowball, you should select the "Paid at Maturity" option. This triggers Compound Interest. Check out the formulas under How to Calculate GIC Compound Interest? to see how that math works.
How to Calculate GIC Compound Interest?
Compound interest is the financial equivalent of a snowball effect. You earn interest not only on your initial investment but also on the interest that has already accumulated. This allows your money to grow significantly faster over time compared to simple interest.
To figure out your total GIC returns with annual compounding, you first calculate the Total Future Value (your principal plus all the interest earned):
Tip: Be sure to convert the interest rate percentage into a decimal before running the calculation (for example, 5% becomes 0.05).
To isolate exactly how much Compound Interest you earned on top of your original deposit, simply subtract your initial investment from that final total:
Can I determine the maturity of my GIC?
Most financial institutions offer GICs with specific terms. Often they offer 1-year GIC, 2-year GIC, 3-year GIC, 4-year GIC and 5-year GIC. There are also short-term GICs, such as 3-month GICs and 6-month GICs. A few financial institutions, like Community Trust, offer the option to choose your own maturity. Community Trust is a subsidiary of Questrade Financial Group.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA® does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.