Tools · Personal Finance

GIC ladder calculator

Split a lump sum across one- to five-year GICs. See the blended rate, what comes free each year, the value after five and ten years as each rung is reinvested, and how the ladder compares with rolling one-year GICs, one five-year GIC or a savings account — with the arithmetic shown.

Imperium Post · Default rates are the Bank of Canada's weekly chartered-bank GIC series, observation 9 September 2026 · Edit them to the quotes your bank or credit union actually offers · Entered amounts are not saved or sent

Amount to invest Money you will not need for at least a year. The calculator splits it into equal rungs.

Number of rungs Five rungs = one-, two-, three-, four- and five-year GICs. Three rungs = one, two and three years.

GIC rates by term (annual, compounded yearly, paid at maturity)

1-year

BoC posted

2-year

midpoint — edit

3-year

BoC posted

4-year

midpoint — edit

5-year

BoC posted

Defaults are dated posted-rate observations, not offers. Replace them with issuer quotes and confirm terms.

Savings-account rate to compare (optional) A high-interest savings account. Leave as is if you just want the GIC comparison.

Your marginal tax rate (optional) First-year illustration only. Future balances are before tax. This does not model RRSP withdrawal tax.

Reinvest each maturing rung in a new longest-term GIC at today's longest-term rate

2.58%

What matures, year by year

Year	Matures	Principal	Interest	Cash freed	Then

Ladder vs. the alternatives

Strategy	Year 1	After 5 years	After 10 years	Interest, 10 yrs	Access

Assumptions and the arithmetic

How a ladder works

Equal principal amounts buy terms of one to N years. Each original rung matures in its respective year. Maturities are either held as zero-interest cash or reinvested with all proceeds into a new N-year GIC at the entered N-year rate.

This model compounds annually and pays at maturity. Renewal rates stay constant for the illustration, not as a forecast. Five- and ten-year values include accrued interest on unmatured GICs and are not all accessible cash. Comparison balances are before tax, fees and inflation.

A worked example

$50,000 split five ways at 2.45%, 2.50%, 2.55%, 2.65% and 2.75% has a 2.58% average rate: $1,290 accrued across all rungs in year one. The first maturity is $10,245; the two-year maturity is $10,506.25. At a 30% illustrative tax rate, first-year interest after tax is $903. Future balances are before tax.

Deposit insurance: the $100,000 line

Eligible GICs at a CDIC member share the $100,000 principal-and-interest limit with other eligible deposits in the same ownership category at that institution. Different maturity terms do not create new coverage. Leave room for accrued interest and other deposits. This tool flags the ladder alone and cannot certify coverage; verify the issuer, category and all your deposits with CDIC.

Frequently asked

What is a GIC ladder?: A lump sum split into equal parts, each in a GIC of a different term, so that one part matures every year. Maturing parts are reinvested at the longest term. The interest difference depends on the rates and reinvestment assumptions.
Is a ladder better than one long GIC?: It depends on rates, renewal rates and access needs. The table compares assumptions and does not recommend a strategy.
Should I use equal rungs?: This calculator uses equal initial principal amounts. Maturity proceeds vary because terms and accumulated interest differ; unequal rungs are outside its scope.
Are GICs covered by CDIC?: Yes, at member institutions, up to $100,000 of principal and interest per depositor per insured category. GICs and other term deposits are eligible deposits. Check that the issuer is a member on CDIC's website; verify the issuer on CDIC’s member list.
Is GIC interest taxable?: Outside a registered account, yes, as ordinary income, and it is generally reported for each complete investment year, even without a T5 and even if the GIC pays at maturity. Inside a TFSA it is tax-free; inside an RRSP or RRIF it is deferred.
Where do the default rates come from?: The Bank of Canada publishes weekly series for chartered-bank one-, three- and five-year GIC rates (2.45%, 2.55% and 2.75% for 9 September 2026). The two- and four-year defaults are midpoints, not published figures.

Sources

Bank of Canada, Valet API, series V80691339 (GICs: 1-year), V80691340 (3-year), V80691341 (5-year), chartered-bank rates, observation 2026-09-09: 2.45 / 2.55 / 2.75. Source: bankofcanada.ca
Canada Deposit Insurance Corporation, "How deposit insurance works": each insured category covered separately up to $100,000 including principal and interest; GICs and other term deposits are eligible (page checked 14 September 2026): cdic.ca
Canada Revenue Agency, "Line 12100 – Interest and other investment income": interest on investment contracts is reported annually as it accrues: canada.ca

General information for the assumptions stated on this page; not personal financial or tax advice. Prepared with AI assistance by Claude; adapted and source-checked by Codex on 14 September 2026. Human factual review is not documented. Inputs stay in this page and are not saved or sent.