Since then, interest rates have been on a steady downward slope. This kicked into overdrive after the 2007-2008 financial crisis, which saw central banks employ radical solutions to combat the crisis. In 2021, GIC rates usually fall in the 1-2% range. This is simply inadequate no matter what your risk tolerance is.
In this environment, GICs will not get the job done for investors. Even before inflation started this troubling run, the majority of GICs were not keeping up with the inflation rate. Now, investors will park their money for years only to lose out on a month-to-month basis. Investors on the hunt for income will be forced to assume more risk in this environment, either through investing in bonds, income-yielding funds, or through dividend stocks.