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CD Calculator & GIC Calculator

Calculate maturity value, interest earned, and effective APY for US certificates of deposit and Canadian GICs. Choose compounding frequency for accurate results.

By Sammy S. · Founder · AuthorUpdated for 2026

2026
FDIC $250K
CDIC $100K

How it works

1

Enter principal

Deposit amount you plan to lock in (e.g. $10,000).

2

Set rate & term

Annual rate (APY or nominal) and term in months.

3

See maturity & APY

Instant maturity value, interest earned, and effective annual yield.

How to use this CD / GIC calculator

Enter your principal, annual rate, and term in months, then choose how often interest compounds. The calculator shows maturity value, interest earned, and effective APY for US CDs and Canadian GICs.

Your inputs

Principal, rate, term & compounding

$

Monthly is most common for US CDs. Match your bank's disclosure for best accuracy.

Maturity value

12 mo · 5% · Monthly compounding

$10,511.62

Interest earned: $511.62 · Effective APY: 5.12%

$10,000.00

Principal

$511.62

Interest

5.12%

APY

Formula check

A = P(1 + r/n)^(nt)

Compoundings / year (n)12
Term in years (t)1.00
Effective APY5.12%
Coverage & yields
FDIC / CDIC & sample APY
FDIC insured (US)$250K
Per depositor per bank per ownership category
CDIC insured (CA)$100K
Per depositor per category per member institution
Monthly APY @ 5%5.12%
Effective yield after monthly compounding
CoverageUS & Canada
Same math for CDs and GICs
Hold to maturity

Results assume you hold the CD or GIC until maturity. Early withdrawal penalties (or non-redeemable GICs) can wipe out earned interest — check your agreement before locking funds.

Use your bank's actual rate and compounding schedule.

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CD maturity reference: $10,000 · monthly compounding

Maturity value by rate and term — use the calculator above for your exact numbers

Rate6 months1 year2 years5 years
4%$10,202$10,407$10,831$12,210
5%$10,253$10,512$11,049$12,834
6%$10,304$10,617$11,272$13,489

All values assume $10,000 principal, monthly compounding (12×/year). Maturity value = principal + interest.

How compounding frequency affects your return

$10,000 · 5% nominal rate · 1 year — more frequent compounding = higher effective APY

FrequencyTimes/yearMaturityInterestAPY
Annually1×$10,500.00$500.005.00%
Semi-annually2×$10,506.25$506.255.06%
Quarterly4×$10,509.45$509.455.09%
MonthlyMost common12×$10,511.62$511.625.12%

Monthly compounding earns $11.62 more than annual on a 1-year $10,000 CD at 5%. Formula: A = P(1 + r/n)^(nt).

How CD & GIC interest works

A = P(1 + r/n)^(nt) — P is principal, r is the annual rate as a decimal, n is compounding frequency per year, and t is the term in years. The calculator also shows effective APY: (1 + r/n)^n − 1.

Nominal rate

The stated annual rate on your CD or GIC. Divide by compounding periods to get the periodic rate.

Effective APY

True annual yield after compounding. Monthly 5% nominal = 5.12% APY. Disclosed on US CDs (Truth in Savings).

Maturity value

Principal plus all interest earned over the full term — the amount you receive at maturity.

CD vs GIC: what's the difference?

FeatureCD (US)GIC (Canada)
Full nameCertificate of DepositGuaranteed Investment Certificate
InsuranceFDIC up to $250KCDIC up to $100K/category
Tax reportingForm 1099-INTT5 Statement (Canada)
Tax shelteringTraditional / Roth IRARRSP / TFSA
Early redemptionPenalty (months of interest)Often non-redeemable
CurrencyUSDCAD (or foreign currency)

Both use the same compound interest formula. This calculator works identically for both.

CD vs high-yield savings

FactorCDHYSA
Rate typeFixed for full termVariable — can change
LiquidityLocked until maturityFully accessible
Early exitPenalty appliesNo penalty
Typical rateHigher for longer termsCompetitive for short-term
Best forMoney you won't need soonEmergency fund / short-term
FDIC insuredYes (up to $250K)Yes (up to $250K)

Use a CD when you won't need the money for a fixed period. Compare current CD rates vs HYSA rates before committing.

CD ladder strategy: maximize rate & liquidity

Stagger maturities to balance higher long-term rates with annual access to cash

CD rungAmountExample rateMaturesMaturity value
1-year CD$5,0004.5%Year 1~$5,230
2-year CD$5,0004.7%Year 2~$5,484
3-year CD$5,0004.9%Year 3~$5,775
4-year CD$5,0005.0%Year 4~$6,078
5-year CD$5,0005.1%Year 5~$6,412

Each year one CD matures — reinvest into a new 5-year CD to keep the ladder rolling. Rates shown are illustrative; model each rung in the calculator above.

FDIC vs CDIC deposit insurance

FDIC (US CDs)

$250,000 per depositor, per insured bank, per ownership category (single, joint, IRA, trust). Adding a joint owner or using an IRA can increase coverage at one bank. Automatic — no application needed.

CDIC (Canadian GICs)

$100,000 per depositor per deposit category per member institution. There are 9 separately insured categories: one name, joint, trust, RRSP, RRIF, TFSA, RESP, RDSP, and FHSA — each with its own $100K limit.

Neither covers rate risk or inflation risk — only loss due to bank failure.

CD & GIC tax treatment

United States

CD interest is taxable ordinary income in the year earned or credited. Banks issue Form 1099-INT for $10+ in interest. OID CDs require annual reporting even without cash. Tax-sheltered: Traditional IRA CD · Roth IRA CD.

Canada

GIC interest is reported on a T5 Statement. The CRA requires annual accrual reporting for multi-year GICs. TFSA: tax-free. RRSP: tax-deferred until withdrawal.

Estimate tax with our Tax Bracket Calculator.

Early withdrawal penalties — what to expect

Breaking a CD before maturity typically costs several months of interest

CD termTypical penaltyExample impact (5% rate)
3–6 months~1 month of interest~$42 on $10,000
9–12 months~3 months of interest~$125 on $10,000
2–3 years~6 months of interest~$253 on $10,000
4–5 years~12–18 months of interest~$500–$750 on $10,000

Canadian GICs are often non-redeemable. Some US banks offer no-penalty CDs with lower rates. Always read your agreement — penalties vary by institution.

Building toward a savings goal?

Use our Compound Interest Calculator to model recurring contributions, or our Savings Goal Calculator to find the monthly deposit needed to reach a target.

Frequently asked questions
Tax, compounding, FDIC/CDIC, ladders, APY vs APR, IRA CDs, GICs in TFSA/RRSP, and more.

CD interest is taxable as ordinary income in the year it's earned or credited (US). Banks issue Form 1099-INT for US CD interest of $10 or more. OID (zero-coupon) CDs require annual reporting even without cash payments. For Canadian GICs, the CRA requires you to report interest accrued during each investment year — including multi-year non-redeemable GICs taxed annually, not just at maturity. IRA CDs (US) and GICs held in a TFSA or RRSP (Canada) defer or eliminate tax. Use our Tax Bracket Calculator to estimate tax on CD interest.

Compound frequency is how often interest is calculated and added to your principal. Monthly (12× per year) is most common for US CDs. Quarterly (4×) and annually (1×) are also used. More frequent compounding yields slightly higher returns for the same stated nominal rate — a 5% rate compounded monthly delivers a 5.12% effective APY.

US CDs are FDIC insured up to $250,000 per depositor per insured bank per ownership category. Canadian GICs at CDIC member institutions are insured up to $100,000 per depositor per deposit category per member institution (9 separately insured categories including RRSP, TFSA, FHSA, and more). Both protect principal and earned interest against bank failure — not against rate changes or inflation.

A CD ladder splits your investment across multiple CDs with staggered maturities (e.g., 1-, 2-, 3-, 4-, 5-year CDs). Each year one CD matures; you reinvest that amount into a new long-term CD. Laddering lets you capture higher long-term rates while keeping a portion of your funds accessible every year.

CDs typically offer higher rates than savings accounts in exchange for locking in your money for a fixed term. Early withdrawal triggers a penalty. High-yield savings accounts (HYSAs) are fully liquid and sometimes match or beat short-term CD rates when interest rates are rising. Compare current rates and your timeline before deciding. Compare returns with our Compound Interest Calculator.

Use the compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is the annual rate as a decimal, n is compoundings per year, and t is years. For $10,000 at 5% compounded monthly for 1 year: A = 10,000 × (1 + 0.05/12)^12 ≈ $10,511.62. Use this calculator to skip the math.

Functionally yes — a GIC (Guaranteed Investment Certificate) is the Canadian equivalent of a US Certificate of Deposit. Both are fixed-term deposits with a guaranteed interest rate. The main differences are the regulatory framework (CDIC vs FDIC insurance) and tax treatment by country. This calculator works identically for both.

US banks typically charge a penalty of 3–6 months of interest for early withdrawal on short-term CDs, and up to 12–24 months of interest on longer terms. Non-redeemable GICs in Canada often cannot be withdrawn early. This calculator assumes you hold to maturity — check your institution's terms.

APR (or nominal rate) is the stated annual rate before compounding. APY (Annual Percentage Yield) reflects the true return after compounding for a full year. For a 5% nominal rate compounded monthly, the APY is 5.12%. Banks must disclose APY under the Truth in Savings Act (US).

An IRA CD is a certificate of deposit held inside an Individual Retirement Account (Traditional or Roth). Interest grows tax-deferred (Traditional) or tax-free (Roth). The CD is still FDIC insured up to $250,000 in the retirement ownership category. Early IRA withdrawals before 59½ may trigger a 10% penalty plus income tax, separate from any CD early withdrawal penalty.

Choose a CD when you won't need the money during the term and want a locked rate. Choose an HYSA for emergency funds or when you need liquidity. In falling-rate environments, locking a CD can preserve yield; in rising-rate environments, short HYSAs or short CDs keep flexibility.

Monthly is most common for retail US CDs. Some products compound daily, quarterly, or annually. Always match the calculator's compound frequency to your bank disclosure — APY already embeds compounding for comparison shopping.

If you hold to maturity at an insured institution within coverage limits, you generally receive principal plus agreed interest. You can lose relative purchasing power to inflation, forfeit interest (or more) via early withdrawal penalties, or face losses above insurance limits if a bank fails.

Many banks auto-renew into a new CD at the then-current rate unless you opt out during a short grace period. Review maturity notices so you can withdraw, reinvest, or move funds to a better rate or ladder rung.

Brokered CDs are issued by banks but sold through brokerage accounts. They can offer competitive rates and easier ladder building, but early exit usually means selling on the secondary market (price risk) rather than a simple bank penalty. Confirm FDIC pass-through coverage and call features.

The CRA generally requires interest to be reported as it accrues each year, even on multi-year non-redeemable GICs — not only at maturity. You typically receive a T5 for reportable amounts. Holding GICs in a TFSA or RRSP changes the tax outcome.

Match the term to when you'll need the cash. Longer terms often pay more but increase opportunity cost if rates rise or you need funds early. A CD ladder can blend short and long terms.

No. Results assume you hold to maturity. Penalties vary widely by bank and term — read your deposit agreement before breaking a CD.

Compare APY (not just nominal rate), compounding method, minimum deposit, early withdrawal terms, and insurance. For the same APY and hold-to-maturity plan, maturity values should converge; differences usually come from fees, call features, or brokered secondary-market risk.

Yes, many Canadian institutions offer GICs inside TFSA, RRSP, and other registered accounts. Registered holdings change tax treatment: TFSA growth is tax-free; RRSP growth is tax-deferred until withdrawal.

A no-penalty (or liquid) CD lets you withdraw early without the usual interest penalty, usually in exchange for a lower rate than a standard CD of the same term. Useful if you want a rate lock with an escape hatch.

It applies the standard compound interest formula with your chosen frequency and rounds to cents. Banks may use day-count conventions, compounding on business days, or slight APY rounding differences — treat results as estimates and confirm with your institution's disclosure.
References & official sources
CD and GIC rules, insurance limits, and tax treatment from official regulators
FDIC – Deposit Insurance
US CDs insured up to $250,000 per depositor per institution
CDIC – Deposit Insurance
Canadian GICs insured up to $100,000 per category
IRS Topic 403
Interest received (1099-INT)
IRS Publication 550
Investment income and expenses (OID, CD tax)
CRA – Line 12100
Interest and other investment income (GIC reporting)

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Last updated: 2026-07-27 · Estimates only; verify with your bank or broker · Not financial advice.