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 | 3.50% | 0.10% | 3.60% |
| 2 Year | 3.55% | 0.10% | 3.65% |
| 3 Year | 3.30% | 0.10% | 3.40% |
| 4 Year | 3.30% | 0.10% | 3.40% |
| 5 Year | 3.35% | 0.10% | 3.45% |
| Average Yield to Maturity** | 3.40% | 0.10% | 3.50% |
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).