GUARANTEED INTEREST FUNDS

Guaranteed interest funds offer you a fixed interest rate until the end of your term. You can choose to invest for a period ranging from 1 month to 10 years. This is a secure investment option for investors seeking stability.

Competitive rates for 1 month, 1- to 5 year, and 10 year terms are offered. Visit our guaranteed interest fund (GIF) rate webpage to see our current rates.

Yes, a minimum deposit of $500 is required.

However, you can also set up a pre authorized debit (PAD) agreement for smaller amounts and choose to have GIF investments made when you accumulate $500 or $1,000.

For example, if you wish to invest in a 2 year GIF every time you accumulate $500, and you make monthly PAD payments of $100, a new GIF investment will be made for you every five months. Until the GIF investment is made, your deposits are held in a daily interest fund.

There is no minimum age to open a non-registered contract. However, there may be a minimum or maximum age for opening a registered contract. For example, you must be 18 or older if you want your guaranteed interest fund (GIF) to be registered in a tax-free savings account (TFSA).

In both cases, these are secure investment options that offer higher returns than a regular bank account.

Guaranteed interest funds allow you to invest a specific sum of money for a predetermined period. They offer a fixed interest rate that is guaranteed for the term of the investment.

The high interest savings account, on the other hand, offers a variable interest rate, but is not tied to a specific term.

Unlike most guaranteed investment certificates (GICs) offered by banks, iA guaranteed interest funds are redeemable at any time. However, surrender charges may apply if withdrawals are made before the maturity date.

Rates are reviewed weekly, and different terms can offer better returns depending on your objectives and investment horizon. Consult with your advisor to find your optimal strategy.

In the case of non registered investments, the interest paid to you is added to your taxable income for the year. It will therefore be taxed at your marginal tax rate.

Not at all. 100% of your capital is guaranteed at maturity, in addition to the return you will receive based on your selected interest rate and term. Guaranteed interest funds (GIFs) offer a great combination of return and security.

No management fees are charged for guaranteed interest funds.

There are two possible types of interest:

• Simple (interest is calculated on capital only and is payable monthly or annually)
• Compound (interest is calculated on both capital and interest, and is payable only at the end of the term)

These benefits are possible through the designation of a beneficiary, which allows for a transfer of assets without going through the normal estate settlement process in the event of death.

In the event of the death of a person with a GIF, the amounts invested are therefore paid directly to the designated beneficiaries. Settlement is fast and free of charge. Conversely, the normal estate settlement process can be lengthy and costly.

The capital paid can help relatives cover financial commitments for the deceased without having to compromise their personal finances while waiting for the estate to be settled.

As with most life insurance products and segregated funds, your investments in a guaranteed interest fund can be protected from creditors.

For this coverage to be valid, however, you must ensure that:

• At least one “preferred” or irrevocable beneficiary was designated
• Your investments must be made in good faith, without any intention of fraud towards potential creditors

Please also note that if you declare bankruptcy within five years of opening a guaranteed interest fund contract and it is proven that you would not have been able to repay your debts without the transferred funds, the coverage may be invalidated by the insurance company.