What is a GIC ladder?
A Guaranteed Investment Certificate (GIC) pays a fixed rate of interest for a fixed term, and your principal is guaranteed. The catch with a non-redeemable GIC is that your money is locked in until maturity — cash it in early and you generally lose the deal you signed up for.
A GIC ladder solves that trade-off. Instead of putting all your money into one GIC, you split it across several terms — typically one, two, three, four, and five years. Something matures every year, so you get regular access to your cash while still earning the higher rates that longer terms usually pay.
Why ladder in October 2026?
GIC rates in Canada have been drifting up through 2026, and longer terms are now paying noticeably more than short ones. The Bank of Canada’s policy rate is 2.25%, held at its September 2, 2026 decision, with the next decision coming October 28, 2026. Nobody knows what the Bank will do next — and that is exactly the point of a ladder. You do not have to guess the perfect moment to lock in. You lock in a little at several terms, and you get a chance to reinvest every year at whatever rates are on offer then.
How a five-year ladder works
Take $25,000 you will not need for day-to-day spending and split it into five equal parts of $5,000:
- $5,000 in a 1-year GIC
- $5,000 in a 2-year GIC
- $5,000 in a 3-year GIC
- $5,000 in a 4-year GIC
- $5,000 in a 5-year GIC
After one year, the 1-year GIC matures. Reinvest that $5,000 (plus its interest, if you like) into a new 5-year GIC. After that, one rung matures every year, and every rung you reinvest goes into a new 5-year term. Once the ladder is running, you always hold GICs maturing in one, two, three, four, and five years — and you can change your mind once a year, without breaking a term early.
If $25,000 is more than you have, the same idea works on a smaller scale. Start with three rungs — one, two, and three years — and add longer rungs as you save more.
What rates are on offer? (October 26, 2026)
Rates below are non-redeemable GIC rates published in October 2026. Rates change without notice, so confirm the current rate with the institution before you buy.
| Term | EQ Bank | WealthONE Bank of Canada |
|---|---|---|
| 1 year | 3.70% | 3.90% |
| 2 years | 4.00% | 4.30% |
| 3 years | 4.15% | 4.40% |
| 4 years | 4.20% | 4.45% |
| 5 years | 4.30% | 4.55% |
EQ Bank’s minimum GIC deposit is $100, and its published rates are the same in non-registered, TFSA, RRSP, and FHSA accounts. WealthONE’s minimum is $1,000, and its GICs are available in registered and non-registered accounts. Oaken Financial’s 5-year rate was also listed at 4.50% on October 26, 2026.
Learn more about EQ Bank, WealthONE, or Oaken Financial on each provider’s website.
The math: a $25,000 ladder at EQ Bank’s October 2026 rates
Using simple annual interest for illustration:
| Rung | Amount | Rate | Interest in a year |
|---|---|---|---|
| 1 year | $5,000 | 3.70% | $185.00 |
| 2 years | $5,000 | 4.00% | $200.00 |
| 3 years | $5,000 | 4.15% | $207.50 |
| 4 years | $5,000 | 4.20% | $210.00 |
| 5 years | $5,000 | 4.30% | $215.00 |
| Total | $25,000 | 4.07% average | $1,017.50 |
That average — 4.07% — is the blended rate across the whole ladder. Your actual payout depends on each GIC’s interest payment and compounding options, so treat this as an illustration, not a quote.
Where to hold your ladder: TFSA, RRSP, or non-registered?
Interest earned in a non-registered account is taxed as ordinary income in the year it is earned. That makes registered accounts worth considering for a ladder:
- TFSA GICs: interest grows and is withdrawn tax-free, within your TFSA room.
- RRSP GICs: tax is deferred until withdrawal, often at a lower rate in retirement.
- FHSA GICs: available at some institutions, including EQ Bank, for first-home savings.
Check your contribution room before you buy a registered GIC — a GIC inside a TFSA or RRSP still counts against that account’s limit.
Safety: CDIC coverage
GICs issued by a CDIC member institution are insured up to $100,000 of principal and interest per insured category, per member institution. Your TFSA, RRSP, and non-registered deposits are separate categories, so spreading a ladder across categories — or across institutions — can increase your total coverage. Credit unions are not CDIC members; they are covered by provincial deposit insurance instead, which varies by province.
What not to ladder
- Your emergency fund. An emergency fund needs to be available immediately. Keep that in a high-interest savings account, not a locked-in GIC.
- Money you will need before maturity. A house down payment due in eight months does not belong in a 2-year GIC.
- Everything at one institution above the insured limit. If your ladder at a single bank exceeds $100,000 in one insured category, split it across institutions or categories.
A simple checklist before you start
- Confirm you will not need this money before each rung matures.
- Compare the rate for your exact term — the best 1-year rate and the best 5-year rate are rarely at the same bank.
- Check the minimum deposit and whether the GIC is redeemable or non-redeemable.
- Decide on the account type: TFSA, RRSP, FHSA, or non-registered.
- Set a reminder for each maturity date, and decide in advance what you will do when a rung matures: reinvest, spend, or move it.
The bottom line
A GIC ladder is a hands-off way to earn more than a savings account without betting everything on one rate or one date. You give up instant access, but in return you get a guaranteed rate, a maturity every year, and a built-in chance to reinvest as rates change. If the money is genuinely spare for at least a year, a ladder beats leaving it all in one long term — or all in a chequing account earning next to nothing.
Rates in this article were checked on October 26, 2026, and will change. Confirm the current rate with the provider before you buy. This is general information, not personalized financial advice; for larger savings decisions, consider speaking with a licensed advisor.
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