If you have a large savings account balance and rarely make withdrawals, a term deposit may be the ideal investment for you. Term Deposits and Guaranteed Investment Certificates (GICs) earn higher interest than regular savings accounts and can help you make the most of your money within your investment time horizon.

Term Deposits and GICs may be used as investment vehicles inside registered plans such as RRSPs or as non-registered investments without the same tax benefits as registered RRSP investments.

Features

• Term Deposits and GICs provide a fixed rate of return for a specific term.
• Both your original investment and interest payments are guaranteed.
• We offer short and long terms ranging from 30, 60, 90, 150 and 180 days to one, two, three, four and five years.
• You can include Term Deposits and GICs in your RRSP or other registered investment plans.
• Your investment is protected by the Deposit Insurance Corporation of Ontario for up to $100,000 per account holder.

Options

• Non-redeemable Term Deposits and GICs – Funds are locked in and cannot be redeemed until the maturity date.
• Redeemable Term Deposits and GICs – Funds may be redeemed before the maturity date, but are subject to an interest penalty.
• Three- and five-year Index-linked Term Deposits and GICs – Your initial investment is fully guaranteed, but your return is based on the performance of the stocks comprising the S&P/TSX 60 composite index.
• Step-up Term Deposits and GICs – A five-year term with an interest rate that increases each year of the investment. Interest compounds annually and is paid at maturity.

Interest Rate

• Interest is paid monthly, annually or at maturity, depending on the option you choose.