Calculate exactly how much interest your GIC will earn. Compare 1-year, 3-year, and 5-year terms — and see how much extra you earn with top rates vs. big bank rates.
Calculate Your GIC Returns
💰 GIC Interest Calculator
$1,050
At maturity: $26,050 · 1-year GIC at 4.20%
$26,050
Maturity value
4.20%
Effective annual yield
+$430
vs. big bank GIC (2.5%)
💡 Pro tip: Hold your GIC inside a TFSA to make the interest completely tax-free. At a 40% marginal rate, a 4.2% GIC inside a TFSA is equivalent to a 7% rate in a taxable account.
Best GIC Rates in Canada — March 2026
Institution
1-Year
2-Year
3-Year
5-Year
Deposit Insurance
EQ Bank
4.50%
4.25%
4.10%
3.90%
CDIC
Oaken Financial
4.45%
4.20%
4.05%
3.85%
CDIC
Achieva Financial
4.35%
4.15%
4.00%
3.80%
CUDGC-MB (unlimited)
Hubert Financial
4.30%
4.10%
3.95%
3.75%
CUDGC-MB (unlimited)
Peoples Bank
4.25%
4.05%
3.90%
3.70%
CDIC
Tangerine
3.75%
3.60%
3.50%
3.35%
CDIC
Scotiabank
2.75%
2.60%
2.50%
2.40%
CDIC
TD Bank
2.50%
2.35%
2.25%
2.15%
CDIC
RBC
2.45%
2.30%
2.20%
2.10%
CDIC
Rates approximate as of March 2026. Always verify current rates directly with the institution before purchasing. Rates fluctuate with Bank of Canada policy changes.
GIC Interest Earned at Different Rates ($25,000)
Rate
1 Year
2 Years
3 Years
5 Years
4.50% (EQ Bank)
$1,125
$2,300
$3,527
$6,133
4.00% (online avg)
$1,000
$2,040
$3,122
$5,416
3.50% (Tangerine)
$875
$1,781
$2,719
$4,716
2.50% (big banks)
$625
$1,266
$1,922
$3,276
Difference (4.5% vs 2.5%)
+$500
+$1,034
+$1,605
+$2,857
GIC vs. High-Interest Savings vs. KOHO Cashback
GICs lock up your money but guarantee a rate. High-interest savings accounts (like EQ Bank's 3.75%) are flexible but the rate can change. KOHO's 1% cashback on spending isn't technically a savings rate, but it adds up quickly — $3,000/month in spending earns $360/year in cash back with no lock-up period.
For money you won't need for 1–5 years: a GIC at 4.5% in a TFSA is one of the best risk-free returns in Canada. For money you might need anytime: EQ Bank's 3.75% savings account is better since it's fully liquid.
Should You Use a TFSA or RRSP for Your GIC?
TFSA GIC: All interest is tax-free. Withdrawals don't affect income-tested benefits (OAS, GIS, etc.). Contribution room grows back next year. Best for most Canadians under 65.
RRSP GIC: Contributions give you an immediate tax refund (at your marginal rate). Growth is tax-deferred. Withdrawals in retirement are taxed at (hopefully) a lower rate. Best for high earners who want to defer tax.
Non-registered GIC: Interest is fully taxable each year. Only use non-registered GICs if you've maxed both TFSA and RRSP room.
Frequently Asked Questions
What is the best GIC rate in Canada right now?
As of March 2026, the top 1-year GIC rates are around 4.50% from EQ Bank and Oaken Financial. Online banks and credit unions (especially Manitoba-based ones like Achieva and Hubert) consistently beat big banks by 1.5–2 percentage points. Always compare before buying — the difference on $25,000 over 5 years is $2,800+ in extra interest.
Is GIC interest taxable in Canada?
Yes, GIC interest is fully taxable as income in Canada. For a compound GIC that pays at maturity, you still must report interest annually as it accrues (not when you receive it). To avoid this, hold GICs inside a TFSA (completely tax-free) or RRSP (tax-deferred). At a 43% marginal rate, a 4.5% GIC held outside a registered account effectively yields only about 2.57% after tax.
Can I break a GIC before it matures?
Cashable or redeemable GICs can typically be broken after a set period (often 30–90 days) with a reduced rate. Non-redeemable GICs (which typically have higher rates) cannot be broken early without significant penalties or may not allow early redemption at all. Always check whether the GIC is cashable or non-redeemable before purchasing, especially if you might need the money sooner than expected.
What happens to my GIC if my bank fails?
GICs held at CDIC member institutions (most Canadian banks) are insured up to $100,000 per eligible category. Your TFSA GICs, RRSP GICs, RRIF GICs, and non-registered deposits are each protected separately up to $100,000. Manitoba and Saskatchewan credit union GICs offer unlimited provincial deposit insurance — no cap at all.
What is a GIC ladder and should I use one?
A GIC ladder splits your investment across multiple terms (e.g., $100 each in 1-year, 2-year, 3-year GICs). As each one matures, you reinvest at the current best rate. This strategy gives you liquidity (something matures every year) while still capturing higher rates on longer terms. It's ideal for retirees or anyone who needs predictable income without fully locking in their funds.
Disclaimer: GIC rates are approximate and change frequently. Verify current rates directly with the institution before purchasing. Not financial advice. Information as of March 2026.