Staggered maturity dates

If you want to maximize your GIC returns while protecting against interest rate fluctuations, you can spread out your maturity dates over time. By staggering your maturity dates, you gain flexibility while having access each year to part of your invested principal.

How does it work?

This simple, effective strategy involves dividing your initial principal into multiple equal portions and investing them in a combination of GICs with different terms ranging from 1 to 5 years.

$25,000 initial investment divided into five equal portions of $5,000.

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  • After the first year, your 1-year GIC will mature and be reinvested in a 5-year GIC. The following year, your 2-year GIC will mature and be reinvested in a 5-year GIC. The same is done for each of the following years.
  • After the fifth year, you will have five GICs with 5-year terms and different maturity dates. Your average interest rate will therefore be higher. Whether rates rise or fall, you will always renew your maturing GIC at the highest rate currently available, which is the rate for the 5-year term.

Evoluterm GIC: A turnkey solution!

Our Evoluterm GIC is the no-fuss way to spread out your maturity dates so you don’t have to do it yourself!

Advantages of the Evoluterm GIC:

  • Higher return because you have different terms and maturity dates, resulting in an attractive average rate.
  • Lower risk related to interest rate fluctuations. You can limit the risk of reinvesting when rates are on the decline.
  • Flexible since you have access to part of your invested funds every year.

To learn more and to see how the interest rate reflects the term, click here.

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