These days, a popular investment vehicle seems to be what the financial industry terms increasing (”Escalating or Accelerated”) rate Guaranteed Investment Certificates (GIC).

The idea behind these GICs is that the longer you hold the GIC, the higher the interest rate earned in those later years. Typically, you will earn less money at the beginning than you would for a normal, fixed rate GIC. However, the last year tends to be a whopping large amount!

So, how do you compare these increasing rate GICs with the regular, fixed interest rate GICs? You would compare their effective yields.
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