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Market Growth GICs for Self-Directed Investors
What are Market Growth GICs?
Unlike traditional GICs that provide a guaranteed return, TD Market Growth GICs offer both a minimum guaranteed return and a potential bonus return based on performance of one of more underlying stock market indices without risking your principal. The total return is subject to a maximum return that is set at the time of purchase. Whether you choose a GIC that is linked to indices that feature the U.S. Top 500 companies, Canadian banks, or utilities, you still earn a minimum return. TD Market Growth GICs are available for purchase online at WebBroker, a trading platform available through TD Direct Investing, in any investment account.
Benefits of Market Growth GICs
Things to Consider
If you receive any bonus return it will be calculated as a percentage of the change in the related index or indices.
In a non-registered account, Market Growth GIC gains are not taxed as capital gains but as interest – which is taxed at an investor’s full tax rate.
Types of GICs
TD Direct Investing offers a wide range of GICs and Term Deposits, so you can easily choose the one that best meets your investing goals.
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Cashable GICs |
Market Growth GICs |
Non-Cashable GICs |
TD U.S. Dollar GICs & Term Deposits |
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Overview |
At TD Direct Investing, you can explore the wide range of Cashable GICs that can help you reach your saving and investing goals. |
Market Growth GICs capitalize on the growth potential of the world’s leading stock markets without risking your principal investment. |
A Non-Cashable GIC cannot be cashed in before the maturity date. Your funds are locked-in for a specific term. |
TD U.S. Dollar GICs and Term Deposits are secure investments. |
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Description |
You’ll get the security of a guaranteed rate for the full term with the flexibility of an early cash-in option. |
Like traditional GICs, they offer you 100% principal protection, while taking advantage of the higher return potential of the stock market and a guaranteed minimum interest return. |
Generally, these investments yield a higher return than a Cashable GIC so they can be an option to consider if you can lock in your funds for a period of time. |
These investments offer you the ability to earn interest at a guaranteed rate on your foreign funds. |
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Length of term |
1 year |
3 years |
30 – 270 days |
3 – 270 days |
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Availability to cash in |
Cashable |
Not cashable |
Not cashable |
Not cashable |
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Options for interest payment |
Options vary by product:
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Options vary by product:
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Options vary by product:
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In-depth information on TD Market Growth GICs
The potential bonus return is based on the performance of the S&P 500. This index is comprised of 500 stocks chosen for market size, liquidity and industry grouping – designed to be a leading indicator of U.S. equities.
The potential bonus return is based on the performance of the S&P/TSX Banks Index. This index is comprised of the stocks of various Canadian financial institutions.
The potential bonus return is linked to two stock market indices - S&P/TSX Banks Index and the S&P/TSX Capped Utilities Index. These indices are comprised of the stocks of various Canadian financial institutions and Canadian utility companies. The potential bonus returns are based on the combined performance of these two indices, with a 50% weighting to each index.
The minimum investment amount is $500 if held in TD Direct Investing RSP, RESP, RDSP, RIF accounts, and $1,000 in Non-Registered and TFSA accounts.
Should a Market Growth GIC be used to fund a payment or withdrawal from a RIF or RESP account, the portion redeemed will reduce the principal investment and no interest is payable on the redeemed amount.
For more information about TD Market Growth GICs, or to review the terms and conditions governing these products, please refer to the TD Market Growth GICs Disclosure Statement.
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