What is a GIC ladder?

A GIC ladder is an investment strategy where you divide your cash into equal portions and invest them in GICs of varying lengths (e.g., 1-year, 2-year, 3-year). As each one matures, you either spend the cash or reinvest it at the longest term.

Why use a GIC ladder instead of a single 5-year GIC?

A single 5-year GIC locks all your money up for five years. A ladder provides rolling liquidity. If you use a 5-year ladder, 20% of your money becomes available every single year, while you still earn the higher 5-year interest rate on the reinvested portions.

How do changing interest rates affect a GIC ladder?

A ladder automatically dollar-cost averages your interest rates over time. If rates rise, you benefit quickly as your next maturing GIC is reinvested at the higher rate. If rates fall, you are protected because your longer-term GICs are locked in at the old, higher rates.

🏦 A 5-year GIC ladder earns 0.3-0.5% more than a single HYSA — on $100K that's $300-500/year extra guaranteed income. Plus you get annual liquidity as each rung matures. In today's rate environment, laddering beats locking in or staying liquid. Why guaranteed returns matter now →

GIC Ladder Calculator

Balance High Yields with Rolling Liquidity

If you have a large amount of cash—perhaps for a Cash Wedge Strategy or a future down payment—putting it all in a single GIC locks you in entirely. Putting it all in an HYSA means you miss out on higher guaranteed rates. The solution is the GIC Ladder.

Build Your Ladder

Total Cash to Invest ($)

Ladder Length (Years)

Current Market Rates

(Adjust these to match current rates from your broker)

How the Ladder Works in Practice

Let's say you build a 5-Year ladder. In exactly one year, your 1-Year GIC will mature.

At that point, you have two choices:

Spend the cash: If you are retired and need the money to live on, you withdraw it and spend it. Your ladder shrinks to a 4-year ladder.
Reinvest the cash: If you don't need the money, you take the principal plus interest and buy a brand new 5-Year GIC.

If you continue to reinvest, eventually you will own five separate 5-Year GICs, but one of them will mature every single year. This gives you the maximum 5-year interest rate, but with 1-year liquidity.

Compare Your Options

Before locking your money away, ensure a GIC is the right tool for the job. Depending on the size of your portfolio and your tax bracket, Treasury Bills or Money Market Funds might offer a more flexible solution. Read our Cash Savings Compared guide for a complete breakdown.

GIC Ladder Calculator

Build Your Ladder

Current Market Rates

Your Ladder Strategy

How the Ladder Works in Practice

Compare Your Options

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