Investors face lower rates as maturing GICs prompt search for alternatives

Investors with maturing guaranteed investment certificates (GICs) are facing lower rates, starting around 3 percent, compared to over 5 percent a year ago. This decline is part of a broader trend of falling interest rates, impacting conservative investors. For those seeking alternatives, options include bond funds, which offer potential returns despite price volatility, and dividend stocks with yields between 4 and 6 percent. Cash equivalents, like money market funds, currently yield in the mid to high 3 percent range. Before reinvesting, investors should check if their maturing GICs will automatically roll over or be deposited into a bank account. Automatic rollovers may not be advisable in a declining rate environment.