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GIC Laddering

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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.

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 


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