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GIC Ladder Strategy

Wondering which GIC term you should choose? Eliminate the guesswork and get a higher return by laddering your GIC

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Key Benefits of a GIC Ladder

While you may be tempted to keep your money in a high-interest savings account, watching the interest rate movements for that right moment to invest in a GIC, there is a better solution.

You can choose to continuously invest your savings at the highest interest rate available. It is called a GIC Laddering Strategy and it is quite simple to do.

Instead of investing all funds in a single 5-year GIC, you can split your money across different maturities (e.g. 1, 2, 3, 4, and 5 years).

Reduces interest rate risk

If rates rise, a portion of the portfolio matures each year and can be reinvested at higher rates.
If rates fall, some funds remain locked into the previously higher rates.

Improves liquidity

Funds become available regularly as each GIC matures.
This provides access to cash without breaking long-term GICs.

Potentially increases yield

Longer-term GICs often pay higher rates than short-term GICs.
A ladder captures some of the premium from longer maturities while maintaining annual access to funds.

Creates predictable cash flow

Useful for retirees or investors who want a reliable stream of maturing investments to fund spending needs.

Diversifies reinvestment timing

Avoids the risk of investing an entire lump sum when rates are unusually low.
Spreads reinvestment decisions across different market environments.

Are you an Achieva customer?

Log into Achieva Online Banking and go to the “GIC Centre” to transfer your savings over to GICs. (Select “RRSP Centre” or “TFSA Centre” to transfer savings to registered GICs). Or contact our Customer Service Centre who would be happy to assist you.

Are you new to
Achieva?

Open your account online in minutes, start to finish. Then log in to Achieva Online Banking and go to the “GIC Centre” to transfer your savings over to GICs.