GIC Laddering
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 |
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| $10,000 | Open a 2-year GIC |
GIC matures, Reinvest new 5-year GIC |
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| $10,000 | Open a 3-year GIC |
GIC matures, Reinvest new 5-year GIC |
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| $10,000 | Open a 4-year GIC |
GIC matures, Reinvest new 5-year GIC |
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| $10,000 | Open a 5-year GIC |
GIC matures, Reinvest new 5-year GIC |
