GICDirect.com

Through a proven strategy known as GIC laddering, or staggered maturities, you can further enhance returns in the GIC component of your portfolio and achieve greater growth while also reducing risk. Here's how it works.

You start by dividing the amount you have into five equal parts and then invest into five GICs with terms of one, two, three, four and five years.  Each year, when a GIC comes due, you reinvest in a five-year GIC.  Soon, you’ll have all your money in five-year terms, which generally pay higher interest than GICs with shorter terms. In addition to providing greater potential growth, a GIC ladder offers liquidity – ensuring you have access to 20% of your money each year for planned or unplanned expenses. By diversifying maturity dates you also reduce timing risk – the risk of having to reinvest all your money in a year of unfavourable interest rates.

GICdirect.com can help you implement a laddering strategy and select the best GICs and rates from a network of financial institutions, all without fees or commissions. Shopping around on your behalf, GICdirect can save you time and make you extra money – up to 1% more than retail bank-posted rates. Seemingly small differences really add up. On a $60,000 deposit over five years, that’s as much as $3,000 more in earnings – guaranteed.   

Don’t underestimate the value of GICs as a solid foundation for your financial security. Make GICs part of your investment plan.