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, savings are 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.

Access higher interest rates

Earn more over time than by investing only in one-year GICs

Unlock your funds sooner

Have a portion of your savings available every year in case you need it

Reduce your risk of rate changes

When interest rates go up, you can reinvest your maturing GIC at the higher rate. When rates go down, you’ll still have money locked in at higher rates.

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