CD & GIC Calculator
Calculate maturity value for Certificate of Deposit (US) or Guaranteed Investment Certificate (Canada).
How CD and GIC calculators work
CD (US) and GIC (Canada) are fixed-term deposits with a guaranteed rate. Enter principal, annual rate, term, and compound frequency. The calculator shows maturity value and interest earned.
CD / GIC maturity by rate and term
$10,000 principal, compounded monthly
| Rate | 6 mo | 1 yr | 2 yr | 5 yr |
|---|---|---|---|---|
| 4% | $10,202 | $10,407 | $10,832 | $12,210 |
| 5% | $10,253 | $10,512 | $11,049 | $12,833 |
| 6% | $10,304 | $10,617 | $11,272 | $13,489 |
CD vs GIC: what's the difference?
Certificate of Deposit (CD) is the US term for a fixed-term bank deposit. Guaranteed Investment Certificate (GIC) is the Canadian equivalent. Both offer fixed rates and FDIC/CIPF insurance. Use our compound interest calculator for variable contributions, or savings goal calculator to reach a target amount.
Common Questions About CDs and GICs
How does CD/GIC interest compound?
Interest can compound annually, quarterly, or monthly. Monthly compounding (12× per year) is common and yields slightly more than annual. Formula: A = P(1 + r/n)^(nt), where P = principal, r = annual rate, n = compound frequency, t = years. A 5% CD compounded monthly for 1 year on $10,000 yields $512 vs $500 for annual—use the calculator above to compare.
Are CDs and GICs safe? What's the insurance?
US CDs: FDIC insured up to $250,000 per depositor per institution (per ownership category). Canadian GICs: CDIC (Canada Deposit Insurance Corporation) typically insures up to $100,000 per category (e.g., GICs in one name, joint, TFSA, RRSP). Both protect against bank failure—not rate changes or inflation. For amounts above limits, spread across institutions or categories.
How is CD and GIC interest taxed?
CD/GIC interest is taxable as ordinary income in the year it's earned (US) or received (Canada). For US CDs, you may receive a 1099-INT. Use our tax bracket calculator to estimate the tax. To defer tax, use an IRA CD (US) or hold GICs inside a TFSA or RRSP (Canada).
What is a CD ladder and should I use one?
A CD ladder staggers maturities—e.g., invest in 1-, 2-, 3-, 4-, and 5-year CDs. Each year one matures; reinvest in the 5-year term. Benefits: balance between rate (longer terms usually pay more) and liquidity (money freed up annually). Useful when rates are rising or you want predictable access. Use the calculator to compare ladder returns vs a single CD.
CD vs high-yield savings: which is better?
CDs lock in a rate and typically pay slightly more for longer terms—but you can't withdraw early without penalty. High-yield savings are fully liquid and sometimes match or beat short-term CD rates. Choose CDs if you won't need the money before maturity; choose savings for emergency funds or uncertain timing. Compare current rates before deciding.