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How to lock in your rates?

on Wed, 01/09/2013 - 12:03

Step away from short-term rates
Ladder your investments for a blended rate

If you think interest rates will go up, but don’t know when, consider laddering. A laddering strategy gives you a simple, long-term approach to investing your money by letting you stagger the dates you reinvest.

How does Blended Rate Laddering work?

Step 1

We divide your investment into 5 equal redeemable Ideal Term Funds. All of your money earns the same blended interest rate on the initial terms.

Laddering - Step1

The maturity dates of each of the five term funds are from one to five years. On each of the initial terms, you earn the same rate. This means you get the benefit of a higher rate on shorter terms and you can easily see your total investment return.

Step 2

Money is reinvested into a 5-year term at the interest rate in effect at renewal.

Laddering - Step2

Get a competitive rate at the outset and diversify your time of re-investment. With some money renewing every year, you give yourself the opportunity to catch interest rate changes. In addition, each year you renew into a five-year term, where rates tend to be higher than shorter terms.

Still not convinced that you should invest with us? Ask about tax and estate planning advantages, like income splitting for couples over 65, or bypassing probate* fees. These benefits are not available on your non-registered savings when invested in GICs.

* not applicable in Québec.
  Please note that if an investment is not held to the end of the term, a surrender charge applies.

Please contact us for more information.

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