I met with a prospective client recently who had some cash but wanted a guaranteed income stream for the next few years with no market risk. She was considering a 5 year GIC as it seemed the best option she had seen for her situation.
As a 64 year old, she did not want to risk any dips so she had ruled out investing in the markets. She had specific income needs and the 1.5% rate her bank quoted her for her $100000 was lower than she was expecting. That would be $125/month in interest payments which is well below the $300/month she had hoped to get.