GIC rates are rising but still lag inflation. When are they worth it?

Guaranteed Investment Certificates (GICs) are back on investors’ radars as their return rates jump -- but factor in sky-high inflation and it means money invested in GICs is still ultimately losing purchasing power.

However, finance experts say these investment vehicles can still be a good option for Canadians in certain situations.

“If people want to lock in a portion of their money -- keeping the capital safe -- knowing that they're not making a huge amount, if not losing once that inflation is factored in, GICs are an attractive option in the current environment,” said Mona Heidari, a financial advisor with Vancouver-based BlueShore Financial, in a phone interview.

Ratehub.ca shows one- and three-year GICs now boast returns above four per cent, while some five-year GICs offer returns of above five per cent.