Earn the most from your savings

Given the current economic climate, the Bank of Canada recently announced that there are no imminent plans to increase the benchmark interest rate. This means interest rates are forecasted to remain low for a while yet.

So how can you earn the most from your savings when interest rates are low?

While savers and investors might be tempted to keep their money in high-interest savings accounts, waiting for interest rates to rise before locking into term deposits/GICs, there may be another 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. This is how it works:

Step 1
To start, you separate your savings into five equal amounts and you invest each amount in a 1 year, 2 year, 3 year, 4 year and 5 year GIC. (Guaranteed Investment Certificate)

Step 2
Each year, you will have 1/5 of your savings invested in GICs that will come to maturity. Every time a GIC matures, you reinvest the amount in a new 5-year GIC. (5-year GICs offer you the highest interest rate).

View Cambrian GIC Rates

Even though this strategy may not be new, it is particularly important now, given the impact of COVID-19 on Canada’s economy and the historically low interest rates.

By using the Laddering Strategy:

• You are continuously investing in the highest rate available, which will increase the return on your savings.
• Your funds are secure in a GIC. The money is protected and the interest rate is fixed.
• Should you need access to your funds, you continuously have 1/5 of your savings available to you every year to do as you wish – either re-invest in a 5-year GIC or use the funds to make your dreams come true.
• This strategy works for your TFSA, RRSP, RRIF or any other Savings.

Ready to get started?

Are you a Cambrian Credit Union member?
Log in to Cambrian 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 your branch who would be happy to assist you.

Are you new to Cambrian Credit Union?
Open your account in minutes, start to finish, using our Cambrian Mobile App. Then log in to Cambrian Online Banking and go to the “GIC Centre” to transfer your savings over to GICs. 

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