Maximize Your Returns with the NEW CIBC EasyBuilder GIC™

Staggering the maturity dates of your GIC portfolio, also known as "laddering", is a great way to maximize returns, receive convenient access to your funds and reduce reinvestment risk.

Instead of building and managing a laddered GIC portfolio yourself, an easier and more convenient way to include this strategy in your portfolio is to take advantage of the new CIBC EasyBuilder GIC.

The CIBC EasyBuilder GIC "packages" a laddered investment strategy into a one-stop GIC solution - a solution that does the work for you.

How you benefit from the CIBC EasyBuilder GIC:

Maximizes returns by automatically reinvesting your maturing investments into 5-year GICs, which allow you to benefit from the typically higher interest rates of longer-term GICs.

Reduces reinvestment risk - the risk of missing out on interest rate peaks and of renewing your investment when rates are low - by creating a portfolio of GICs diversified by maturity date.

Provides convenient access to 20% of your initial investment each year.

Guarantees a return and gives you 100% protection of your investment.

Over 10 years, this laddered strategy earned a total return of 65.7%! Assuming a $25,000 initial investment and based on actual historical rates from 1994 to 2003, laddering GIC maturity dates would have grown your savings to $41,429 in 10 years. Compare this to a maturity value of only $36,017 for a 1-year GIC that was reinvested and compounded each year over this same period.

Here's how it works:

Your initial investment is divided into 5 equal portions and invested in 1-, 2-, 3-, 4- and 5-year terms of the CIBC EasyBuilder GIC.
As each GIC matures, the balance is automatically reinvested into a 5-year CIBC EasyBuilder GIC. After the first 5 years, you have a portfolio of 5-year GICs that is varied by maturity dates and which allows you to benefit from the typically higher interest rates of longer-term GICs.
Below is an example of how the CIBC EasyBuilder GIC would work for a $25,000 investment:
You can get started with as little as $5,000, and have the option to select an interest payment best suited to your needs - semi-annual, annual or at maturity.
The CIBC EasyBuilder GIC is available for non-registered investments only. For registered GIC investments, ask a CIBC advisor how a laddering strategy can be part of your portfolio.

Get the CIBC EasyBuilder GIC working for you.

™ The CIBC EasyBuilder GIC is a trademark of CIBC. The CIBC Logo and "For what matters." are trademarks of CIBC.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.