GIC laddering strategy

A better way to invest

At a glance

What is a GIC laddering strategy?

Long-term GICs generally earn interest at a higher rate. However, your funds are locked in until maturity.

A GIC laddering strategy lets you maximize your returns but still cash in part of your investment every year—for the best of both worlds.

Perfect if you're looking to:

  • Take advantage of a competitive rate
  • Access part of your investment each year
  • Minimize the impact of fluctuating interest rates

How does it work?

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Your investment is split

Your principal is split into equal portions which are then invested in a different GIC for a term of 1 to 5 years. If you invest $5,000, for example: $1,000 is invested in a 1-year GIC, $1,000 is invested in a 2-year GIC, and so on.

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Portions are reinvested as they mature

Each year, the maturing GIC is automatically reinvested for a 5-year term. After five years, you'll have five 5-year GICs with staggered maturity dates.

Ready to set up a laddering strategy?

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Do you want to know about the return on your investment right from the start? Find out about the non-redeemable GIC.

A smarter way to grow your savings

$5,000 principal split into 5 equal portions

Whether interest rates are up or down, you'll always get the best rate by renewing your GIC for a 5-year term. You can also access part of your investment each year.

Ready to start saving?

Talk to an advisor for personalized advice or choose an investment online.

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