GIC Laddered Strategy
Invest in a GIC Laddered Strategy
Bonus interest rates are earned when the investment principal is equally distributed across each of the 1 to 5 Year GIC terms. The initial investment is broken down into five equal GICs with terms of 1, 2, 3, 4, and 5 years. A portion of the investment matures each year to gain flexibility to reinvest at the current posted rate. As each GIC matures, the term is reinvested into a new 5 year GIC.
GIC Laddered Strategy is available for Registered (RRSP & TFSA) and Non-Registered Plan Types
|Term Length||Posted Rate||Bonus||Total Rate*|
|Average Yield to Maturity**||5.04%||0.10%||5.14%|
Features and benefits
- Maximize returns - over time, a laddering approach allows you to potentially earn more than you would by investing only in shorter term GICs
- Reduce risk - interest rates move up and down; laddering GICs reduces the impact of changing rates in your investment portfolio
- Secure and safe - your principal investment is guaranteed
- Eligible for registered and non-registered plans
- Low minimum investment ($500)
- Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA).