Index-Linked Term Deposits

An index-linked term deposit is a fixed term investment that pays a return based on the performance of one or more stock market indexes. Simply put, it offers term deposit security with the potential of stock market returns.

For registered products including, LIRA, LIF, RRSP, RRIF, RESP and TFSA: Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA). 

For other eligible deposits: Eligible deposits (not in registered accounts) are insured up to $250,000 through the Financial Services Regulatory Authority (FSRA). 

Features of Index-Linked Term Deposits:

• Opportunity to participate in the growth potential of equity markets
• No risk to the investment principal
• 3 and 5 year terms available
• Potential for greater returns than traditional term deposits
• No commissions or management fees
• Low minimum deposit

Parama Credit Union's Canadian Index-Linked Term Deposit's rate of return is based on the S&P/TSX 60 (Standard & Poor/Toronto Stock Exchange) index.

How the rate of return is determined

The index-linked term deposit's return is based wholly on the performance of the S&P/TSX 60 index. This index is a list of the 60 largest companies on the Toronto Stock Exchange as measured by market capitalization. The rate of return is determined by the average of the stock market indexes (based on a specific day of the month). Interest earned is paid at maturity.

Click on the below links to review current and past performance returns

3 Year Index-Linked Term Deposits - https://www.central1.com/deposit-products-3years/

5 Year Index-Linked Term Deposits - https://www.central1.com/deposit-products-5years/