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A costly mistake: Waiting for interest rates to rise Waiting to see how high or low rates will go could be costing you right now Over the last decade, GIC rates have meandered between 1 and 3% – considered very low, with government bonds even lower. That narrative has only recently begun to shift in 2022, with rates now climbing as high as 4.25% in the first half of the year. Those assuming rates will continue to trend higher are often enticed into placing their money into shorter term investments, often much lower rates, or parking cash in “high” interest savings accounts (with rates often as low as 1.50% or less). In truth, the upper limit as to where rates will eventually plateau is still unknown. As a strategy, guessing is not that sophisticated – particularly when hard facts are in plain sight.
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