GIC Myths Unveiled

Myth #1: GICs are only suitable for conservative or inexperienced investors.

Fact: Guaranteed fixed investments such as GICs are an integral part of a balanced portfolio for every type of investor.

A balanced portfolio consisting of GICs, stocks, bonds and mutual funds reduces the degree of potential highs and lows and helps produce steadier returns over time. GICs are suitable for your personal portfolio or if investing for a small business.


Myth #2: GICs are for older investors.

Fact: Almost half of CIBC GIC investors are under the age of 55.

With the introduction of innovative escalating rate, index-linked and cashable GICs, GICs now meet the needs of investors of all ages.

Whether you're saving for your first home, a family vacation or just need a place to keep your money safe, the security and peace of mind offered by GICs make them appealing to everyone.


Myth #3: GIC returns are low.

Fact: There are many different types of GICs that allow you to maximize your GIC returns.

Premium rate GICs such as the CIBC Bonus Rate GIC and the non-redeemable CIBC Escalating Rate GICTM offer better rates than regular long-term GICs.

Index-linked GICs such as the CIBC Stock Market Advantage GICTM offer interest that is linked to changes in key stock market indices over the term of the GIC and give you unlimited growth potential1. Like regular GICs, your initial investment is 100% guaranteed.


Investors come out ahead in the long run by maintaining a long-term view. Here's how:


Myth #4: You shouldn't invest in a GIC if you expect interest rates to rise.

Fact: There are GICs that are right in any interest rate environment.

Escalating rate GICs such as the 3- and 5-Year CIBC Escalating Rate GICs offer competitive rates that increase each year of the GIC term.

And, if you want the flexibility to redeem your GIC before maturity to take advantage of an increase in interest rates, the CIBC Flexible GICTM and the CIBC Cashable Escalating Rate GICTM 2 provide ideal solutions.

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Tip: Consider laddering your GICs

  • GICs play an important role in an investment plan. By "staggering" or "laddering" your investments equally between several GICs, and reinvesting into 5-year terms at each GIC's maturity, you can:
  • Earn the higher interest rate of a longer term GIC
  • Have the opportunity to re-invest in a rising rate environment
  • Offset the risk of interest rate declines
  • Have access to GIC funds each year if you need them

Get guaranteed growth

Get premium returns with the 3- to 5- year CIBC escalating Rate GIC.TM

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