GIC ladder calculator Canada
A GIC ladder splits your money across staggered terms so a portion matures every year — giving you liquidity without giving up the higher long-term rate. See your blended yield and maturity schedule, and compare reinvesting versus cashing out.
GIC laddering, explained simply
Instead of locking all your money away for one long stretch, you split it into a few equal pieces and stagger when each one unlocks. A slice frees up every year — so you always have cash coming, while the rest keeps earning the higher long-term rate.
Split your money
Take $50,000 and divide it into five equal pieces of $10,000.
Stagger the terms
Lock each piece for a different length — 1, 2, 3, 4 and 5 years — so they unlock one at a time.
Reinvest as they mature
Every year one GIC unlocks. Spend it if you need it, or roll it into a fresh 5-year GIC.
Picture it as a staircase
Each bar is one $10,000 GIC. The longer the bar, the longer it stays locked — and the year it unlocks is marked on the right.
What actually happens, year by year
A real $50,000 ladder at the 2026 default rates. Each year one GIC comes due — here's what it's worth and what you do with it.
- Year 0 You split $50,000 into five $10,000 GICs locked for 1, 2, 3, 4 and 5 years.
- Year 1 The 1-year GIC unlocks at about $10,375. Take the cash, or roll it into a new 5-year GIC.
- Year 2 The 2-year GIC unlocks at about $10,784. Again: spend it or reinvest it at the top of the ladder.
- Year 3 The 3-year GIC unlocks at about $11,232 — another rung comes due right on schedule.
- Year 4 The 4-year GIC unlocks at about $11,721. The pattern is now clear: cash every single year.
- Year 5+ The last original GIC unlocks at about $12,255. From here on every GIC you hold is a 5-year — yet one still matures every year, forever.
The payoff: you get cash within reach every single year, but almost all your money earns the higher 5-year rate the whole time — the best of both worlds.
Your ladder
Your ladder's maturity schedule
Each rung is $10,000. One matures every year — at maturity you reinvest it or take the cash.
| Matures | Term | Rate | Value at maturity |
|---|---|---|---|
| Year 1 | 1 yr | 3.75% | $10,375 |
| Year 2 | 2 yr | 3.85% | $10,785 |
| Year 3 | 3 yr | 3.95% | $11,232 |
| Year 4 | 4 yr | 4.05% | $11,721 |
| Year 5 | 5 yr | 4.15% | $12,255 |
How a GIC ladder works
Locking everything into a single GIC forces a hard choice: a short term pays less, while a long term ties up your cash for years. A ladder solves both at once. You divide your money into equal rungs and buy GICs of staggered terms — 1, 2, 3, 4 and 5 years. From then on, one rung matures every year. You can spend it, or roll it into a fresh long-term GIC at the top of the ladder.
Split into equal rungs → one matures each year → reinvest at the top
- Liquidity every year: a portion always comes due, so you rarely need to break a GIC.
- Long-term rates: once built, most of your money earns the higher five-year rate.
- Rate protection: staggering means you never lock everything in at a single low point.
- Set and forget: guaranteed principal, no price swings, CDIC-insured to the limits.
A worked example
Put $50,000 into a five-rung ladder at the 2026 default rates and run it for 10 years. By reinvesting each maturing rung you end with about $74,799 — roughly $24,799 of interest on a guaranteed, no-market-risk holding. If instead you cashed out each GIC as it matured, you'd hold about $56,368, so reinvesting is worth roughly $18,431 more. Adjust the amount, rungs, horizon and rates above to model your own ladder.
Liquidity without giving up yield
The quiet power of a ladder is that it feels almost as flexible as cash while paying close to the five-year rate. Because one rung always matures within a year, you keep access to a slice of your money — but the rest stays locked in at the higher long-term rate instead of sitting in a low-paying savings account. That's why ladders are a staple for retirees building predictable, guaranteed income.
Getting the most from your ladder
Shop the rates
- Online banks & credit unions often beat the big banks by half a point or more.
- GIC brokers let you buy from several issuers in one account and spread CDIC coverage.
- Watch the curve: if short terms pay nearly as much as long ones, a shorter ladder can make sense.
Shelter the interest
- TFSA first: GIC interest is fully taxable, so tax-free growth is most valuable here.
- RRSP next: tax-deferred, ideal for a registered fixed-income sleeve.
- Non-registered: you're taxed on interest yearly at your full marginal rate.
What this calculator doesn't model
This is a simplified projection. It assumes the rates you enter stay constant, that GICs compound annually, and that maturing cash in the cash-out scenario earns nothing afterward. It doesn't model tax on interest, inflation, changing rates over time, or CDIC limits. Use it to size a ladder, not as a precise forecast. Pair it with our 4% rule guide, the sequence-of-returns guide, RRSP vs TFSA, and the dividend income and investment fee calculators.
Frequently asked questions
What is a GIC ladder?
A GIC ladder splits your money into equal pieces and invests each one in a guaranteed investment certificate of a different term — typically one, two, three, four and five years. As each GIC matures you reinvest it at the top of the ladder (a new longest-term GIC). The result is that a portion matures every year for liquidity, while most of your money still earns the higher long-term rate.
How does GIC laddering work?
Say you have $50,000 and a five-year ladder. You buy five $10,000 GICs maturing in 1, 2, 3, 4 and 5 years. Each year one GIC matures — you can spend that $10,000 or roll it into a fresh five-year GIC. After the first five years every GIC you hold is a five-year certificate, but one still matures every single year. You capture long-term rates without locking up everything at once.
Should I reinvest my GICs or cash out at maturity?
It depends on whether you need the cash. Reinvesting each maturing rung compounds your interest and keeps the ladder capturing the higher long-term rate, so your balance grows over time. Cashing out hands you a predictable slice every year — useful for retirement income — but the money you withdraw stops earning. This calculator shows both ending values side by side so you can see exactly what reinvesting is worth.
What is a good blended yield on a GIC ladder?
The blended yield is simply the average of the rates across your rungs. Because the longer terms usually pay a bit more, a ladder typically yields somewhere between the one-year and five-year posted rates. In 2026, competitive issuers and credit unions price five-year GICs around 4%, so a five-rung ladder often blends to roughly 3.8%–4.1%. Always shop around — online banks and credit unions frequently beat the big banks by half a point or more.
Are GICs safe? What about CDIC coverage?
GICs are among the safest investments available: your principal is guaranteed by the issuer, and eligible deposits are protected by CDIC (or a provincial equivalent for credit unions) up to $100,000 per insured category, per member institution. To stay fully covered on a large ladder, you can spread GICs across more than one institution or category, or use a broker that places them at several CDIC-member banks.
Should I hold GICs in a TFSA, RRSP, or non-registered account?
GIC interest is taxed as ordinary income — the least tax-efficient kind of return — so sheltering it matters. Inside a TFSA the interest is completely tax-free; inside an RRSP it grows tax-deferred. In a non-registered account you pay tax every year on the interest at your full marginal rate, even if the GIC has not matured. Where possible, hold GIC ladders in registered accounts first.
GIC ladder vs bond ladder — what is the difference?
Both stagger maturities for liquidity, but a GIC ladder guarantees principal and a fixed rate with no price swings, while a bond ladder can be sold any time and may gain or lose value as rates move. GICs are simpler and CDIC-insured; bonds are more liquid and can offer capital gains. Many conservative investors use GIC ladders for the guaranteed, set-and-forget portion of their fixed income.
Can I break a GIC before it matures?
Usually not. Most ladder GICs are non-redeemable — your money is locked in until maturity, which is the trade-off for the higher rate. Cashable or redeemable GICs let you withdraw early but pay a lower rate. The whole point of a ladder is that you rarely need to break a GIC: because one rung matures every year, you usually have access to cash without touching the rest.
Educational tool, not financial advice. GIC rates shown are illustrative 2026 Canadian figures and are fully editable — always confirm current rates with your institution. Projections assume constant rates and annual compounding and ignore tax, inflation, and CDIC limits. GIC interest is taxable as ordinary income in non-registered accounts. Confirm your situation with a qualified professional.