Skip to main content

GIC Laddered Strategy

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*
1 Year 4.90% 0.10% 5.00%
2 Year 5.00% 0.10% 5.10%
3 Year 5.05% 0.10% 5.15%
4 Year 5.10% 0.10% 5.20%
5 Year 5.15% 0.10% 5.25%
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).