Long term GICs | Page 4 | Motive Financial | Discussion forum

Rick, you're right, what is the alternative to GICs for those who don't want to be in the markets in one way or another? I guess my answer would be HISAs. I don't get why someone would lock up $100K for 5 years, or even longer, to get less than $2K pre-tax annual income when you could get pretty much the same in a non-locked up HISA, maybe even more if you can get on promos, etc. Sure the HISA rate could go down (could go up too!), so you might lose a few hundred a year in that case, probably not going to change your lifestyle, but the cost of that insurance in the 5 year GIC is to be unable to access your money or benefit as you can in a HISA if inflation and/or rates do bump up. Some see that as risky, especially in a time of rampant money-printing/borrowing as the standard go-to economic policy.