RBC GIC Investment Return Calculator
Investment Summary
Total Interest Earned:
Maturity Value:
Maximize Your Savings with RBC GIC Rates
A Guaranteed Investment Certificate (GIC) from the Royal Bank of Canada (RBC) is one of the safest ways to grow your wealth. Unlike market-based investments, GICs guarantee your original principal while providing a fixed rate of return. This calculator helps you determine exactly how much interest you will earn based on current RBC GIC rates and your investment horizon.
How RBC GIC Interest is Calculated
The math behind your GIC depends largely on the compounding frequency. Most long-term RBC GICs (1 year or more) compound interest annually. However, some special offers might calculate interest monthly or only at the time of maturity (simple interest).
- Compound Interest: You earn interest on your initial deposit plus interest on the interest already accumulated.
- Simple Interest: Interest is calculated only on the principal amount, usually paid out at the end of the term.
Realistic RBC GIC Examples
To understand how your money grows, consider these common scenarios:
Scenario 1: 1-Year Non-Redeemable GIC
If you invest $10,000 at a rate of 4.50% for 1 year, your maturity value will be $10,450.00, earning you $450 in guaranteed income.
Scenario 2: 5-Year Compound Interest GIC
If you invest $5,000 at a rate of 4.00% compounded annually for 5 years, your final balance would be approximately $6,083.26. The power of compounding adds an extra $83.26 compared to simple interest.
Types of RBC GICs
RBC offers several types of GICs to fit different financial goals:
- Non-Redeemable: Offers higher rates but requires you to keep your money locked until the maturity date.
- Cashable: Provides flexibility to withdraw funds before the term ends (usually after 30 days) but typically offers lower interest rates.
- Market-Linked: Returns are tied to the performance of stock market indices while still guaranteeing your principal.