In Canada, Certificates of Deposit (CDs) are commonly referred to as Guaranteed Investment Certificates (GICs). RBC Royal Bank offers a variety of these low-risk investment vehicles that guarantee your principal investment while providing a fixed or variable return over a set period.
How to Use the RBC CD Rates Calculator
This tool helps you estimate the growth of your savings based on current RBC GIC rate offers. To get an accurate estimate:
Initial Deposit: The amount of capital you plan to lock away. RBC often has minimums (e.g., $500 or $1,000).
Annual GIC Rate: The quoted annual percentage rate. Remember that rates fluctuate based on the term length and the type of GIC (Redeemable vs. Non-Redeemable).
Investment Term: The duration of the certificate in months. RBC typically offers terms ranging from 1 month to 10 years.
Compounding Frequency: How often interest is calculated and added to your balance. Most long-term RBC GICs compound annually or pay interest at maturity.
Example Calculation
If you invest $10,000 into a 24-month (2-year) RBC Non-Redeemable GIC at a rate of 4.25% with annual compounding:
Year 1 Interest: $10,000 × 0.0425 = $425.00
New Balance: $10,425.00
Year 2 Interest: $10,425 × 0.0425 = $443.06
Total Maturity Value: $10,868.06
Types of RBC GICs
When selecting a rate, consider the flexibility you need:
Non-Redeemable: Offers higher rates but your money is locked until the term ends.
Redeemable: Provides lower rates but allows you to withdraw funds early without heavy penalties.
Market-Linked: Returns are tied to the performance of stock market indices, offering potential for higher gains with protected principal.
function calculateRBCGIC() {
var principal = parseFloat(document.getElementById('rbc_principal').value);
var rate = parseFloat(document.getElementById('rbc_rate').value) / 100;
var months = parseFloat(document.getElementById('rbc_term').value);
var compoundFreq = parseFloat(document.getElementById('rbc_compounding').value);
if (isNaN(principal) || isNaN(rate) || isNaN(months) || principal <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
var years = months / 12;
var totalValue = 0;
var apy = 0;
if (compoundFreq === 0) {
// Simple Interest (At Maturity)
totalValue = principal * (1 + (rate * years));
apy = rate;
} else {
// Compound Interest Formula: A = P(1 + r/n)^(nt)
totalValue = principal * Math.pow((1 + (rate / compoundFreq)), (compoundFreq * years));
// APY Formula: (1 + r/n)^n – 1
apy = Math.pow((1 + (rate / compoundFreq)), compoundFreq) – 1;
}
var totalInterest = totalValue – principal;
// Display Results
document.getElementById('res_total').innerHTML = '$' + totalValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_interest').innerHTML = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('res_apy').innerHTML = (apy * 100).toFixed(3) + '%';
document.getElementById('rbc_result').style.display = 'block';
}