Term Deposits & GIC's

Credit Union TERM DEPOSITS AND GUARANTEED INVESTMENT CERTIFICATES (GICs) are safe investments because the principal and interest payments are guaranteed. Deposit Insurance also protects your investment. They offer a higher rate of interest than what you would receive through a savings account, providing an attractive savings alternative.

When you invest in a term deposit or GIC, you deposit a sum of money, for a specified period of time, at a fixed interest rate. Usually, the longer the investment period, the higher the rate of interest paid and the higher the amount invested, the higher the rate of interest paid.

Term deposits can be attractive when you are investing for the long term (up to 5 years) and also when you have excess cash for a brief period of time (as little as 15 days). You choose the term (the length of time the money is invested) you desire. It may even be possible to divide your investment into a number of terms, either to ensure you have funds as you need them or to reduce the effects that changes in interest rates have on future reinvestments. Term deposits and GICs may be purchased as part of an RRSP or RRIF.

Some term deposits are specified as "cashable" or "redeemable." In these cases, you have the option of cashing your investment before maturity, at a lower rate of return than you would receive otherwise. Usually your funds must remain in the term deposit or GIC for a minimum period of time or else you will not receive any interest. "Cashable" and "redeemable" investments usually have slightly lower returns than non-cashable and non-redeemable equivalents.

When you establish a term deposit or GIC you have the option of having interest payments reinvested or deposited into one of your accounts. For your convenience we offer automatic renewal, reinvesting your principal and interest in a new term deposit or GIC with the same term as the original investment to ensure that your money continues to work for you. If you prefer to alter your investment, just let us know.

Regular Term Deposits offer you high rates of return at competitive rates. We can help you decide when, how much and how often to invest, to help you reach your savings goals. Minimum investment requirements vary with the term, from $5,000 for 30 to 354 day terms to $1,000 for 1 to 5 year terms.

Index-Linked Term Deposits allow you to diversify your investments by allocating your funds in stocks, bonds and cash equivalents without risking your principal investment. This is a Canadian investment that is linked to the Toronto 60 Index. Because GIC and term deposit rates have been low, index-linked term deposits are an attractive way to enhance potential returns while ensuring that the initial investment remains secure. These term deposits are available for fixed terms of 3 or 5 years. No management fees or commissions are applied.

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