GIC Laddering
Want to maximize your GIC returns without locking in all of your money into one term? GIC laddering gives you the best of all worlds: higher rates, less risk and the ability to access funds every year.
With a GIC laddering strategy your savings is divided into five separate GICs – all with different terms and interest rates. Each year one GIC will mature, allowing you to reinvest the money into another five-year term, or access the funds if needed.
With a GIC laddering strategy your savings is divided into five separate GICs – all with different terms and interest rates. Each year one GIC will mature, allowing you to reinvest the money into another five-year term, or access the funds if needed.
Features
An example of a $50,000 investment using GIC laddering
| Investment | Today | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| $10,000 | Open a 1-Year GIC | GIC Matures/Reinvest new 5 Year GIC | ||||
| $10,000 | Open a 2-Year GIC | GIC Matures/Reinvest new 5-year GIC | ||||
| $10,000 |
Open a 3-Year GIC | GIC Matures/Reinvest new 5 Year GIC | ||||
| $10,000 | Open a 4-Year GIC | GIC Matures/Reinvest new 5-year GIC | ||||
| $10,000 | Open a 5-Year GIC | GIC Matures/Reinvest new 5 Year GIC |