Index-Linked Term Deposits

Invest in Canada at IC Savings

Performance
Often called Index-Linked GICs, these products offer a guarantee of your principal, with a rate of return tied to growth in the stock market.  Returns are based on the performance of the S & P and TSX 60 index.  You can take advantage of gains in the market indeces but be fully protected if market values drop. Your gains can be as high as 30% on some funds but the downside never falls below 0%. Plus, your principal has deposit insurance protection up to $100,000.
Index-Linked Term Deposits are also RRSP eligible and as such have unlimited insurance.

Security
Index-Linked Term Deposits have the security of principal protection, fully insured by the Deposit Insurance Corporation of Ontario. No matter what happens in the stock market, you are guaranteed the return of your principal when your deposit matures.

Who Should Consider an Index-Linked Term Deposit?

1.     Investors who are looking for a higher return than the return paid on fixed-rate deposits.

2.     Investors who are looking for an equity-linked investment that carries no fees or commissions.

3.     Individuals searching for a diversified investment in Canadian corporations.

4.     Conservative individuals who are not willing to risk their initial investment.

Calculating the Return
The investment return on the deposit will be based upon the participation rate (50% for the 3-year deposit; 100% for the 5-year deposit) multiplied by the average return of the S&P/TSX 60 Index over the term of the deposit. The average is calculated by adding the monthly averaging date closing values for the S&P/TSX 60 Index between the start date of the investment and its maturity date, and then dividing that total by the months in the term (36 for the three-year deposit and 60 for the five-year deposit). That average is then compared to the Opening Value of the Index to determine the percentage change. The averaging protects the investment from severe short-term market fluctuations.. The investor will receive the percentage difference between the average and the starting value, multiplied by the participation rate.


Index-Linked term Deposit GICs 2010/2011 Sales Periods

  
Blue Chip Growth
The S&P/TSX 60 Index tracks sixty top companies in leading industries in Canada. This index provides economic diversity over market sectors such as….

• Basic Materials
• Capital Goods
• Communication Services
• Consumer Cyclical
• Consumer Staples
• Energy
• Financials
• Health Care
• Technology
• Transportation
• Utilities

Risks
Unlike other term deposits, there is no guaranteed return on this product. Depending on the performance of the stocks comprising the S&P/TSX 60 Index over the term, it is possible that, at maturity,  investors will receive only their principal back.


* Standard & Poor's®" and "S&P®" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Central 1 Credit Union Limited and sublicensed by the Credit Union. "TSX" is a trademark of the Toronto Stock Exchange and has been licensed for use by Central 1 Credit Union Limited and sublicensed by the Credit Union.  Index-Linked Term Deposits are not sponsored, endorsed, sold or promoted by Standard & Poor's or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in these deposits.