5
Investment Results
Initial Investment
$10,000.00
Total Interest Earned
$1,300.00
Final Value
$11,300.00
Effective Average Yield:
2.60%
Total Return:
13.00%
Period Breakdown
| Period | Rate | Interest | Balance |
|---|
What is an Escalating Rate GIC?
An escalating GIC (also known as a step-up, rate riser, or rising rate GIC) offers interest rates that increase at predetermined intervals over the term. Unlike standard fixed-rate GICs, escalating GICs typically allow penalty-free withdrawals on each anniversary date, providing annual liquidity. The increasing rate structure incentivizes investors to keep funds invested longer, as the highest rates are concentrated in the final years of the term.
Read the full guide on Escalator GICs →
- Yearly rates: The interest rate changes once per year
- Quarterly rates: The interest rate changes every 3 months
- Compounding: When enabled, interest earned in each period is added to the principal for the next period's calculation. When disabled, interest is typically paid out to the investor each period.
Examples of Escalator GICs
- Hubert Financial's One-Year Quarterly Term — quarterly escalating rate
- RBC RateAdvantage GIC — annual escalating rates (2, 3, and 5 year terms)