C'mon....what's a GIC doing there?

Dec 13, 2018 | Jeremy Goldfarb


Unless you are in the throes of retirement, or on a fixed income I am sure it has been a long time since you paid any attention to GIC rates (yes, yes....there are always exceptions....don't shout at me just yet). Don't look now, but shorter rates on GICs are actually compelling for the first time in many years. The short end of the curve has moved quite swiftly and now you can get near 3% on a 1 year term, and over 3% on a 2 year. Pretty good for short rates on a guarantee basis right?!


GICs are safe, and a great way to improve the credit quality of your fixed income portfolio. Rates are now good enough for investors with a more lengthy time horizon to consider them again. I would suggest however, that for the time being, you limit your interest to 1 or 2 years. It`s just not good enough further out quite yet.