Guaranteed Income Optimizer (GIO)

A flexible solution to support you changing income needs

  • Guaranteed payments, regardless of market conditions or interest rate fluctuations
  • Guaranteed principal

Consider this solution if:

  • You want to be able to select among multiple payment schedules
  • You want to plan your retirement in 1 to 10 year increments
  • You want to customize your cash flow as your needs change

The Guaranteed Income Optimizer (GIO) is built to meet your diverse need for income, especially in retirement. You have built up your savings and now you can enjoy them by receiving a guaranteed, stable and predictable payment stream that is fully customizable.

A GIO can be so flexible that it makes planning for a 20- to 30-year retirement more manageable. You can plan for payments in retirement in increments of as long as 10 years by purchasing a 10-year term GIO. However, for shorter horizons, you can choose a GIO with a term as short as 1 year.

If you wish to have full CDIC eligibility for all your retirement years, you can choose a GIO with a term of 5 years or less, reinvesting in a new Guaranteed Income Optimizer once your previous one matures.

When you invest in the Guaranteed Income Optimizer, talk to your advisor and answer two key questions:

  • How often would I like to be paid?
  • How much should each payment be?

Then sit back and let your savings repay you.

The GIO supports the Scotiabank Student GIC Program. For more information:
Students from China
Students from India

Your needs, your choice

Term in years 1-10 years
Redeemable? No
Available payment schedules Bi-weekly, Monthly, Quarterly, Semi-Annually, Annually
Payment amount Your choice (up to the maximum payment amount)
Plan eligibility Non-registered and Tax Free Savings Account (TFSA)
Minimum investment $5,000 (Canadian Dollars only)
Principal 100% Principal Guarantee
CDIC eligible Yes, for terms of 5 years or less1
Issuers
  • Bank of Nova Scotia (BNS)
  • Montreal Trust Company of Canada (MCC)
  • National Trust Company(NTC)
  • Scotia Mortgage Corporation (SMC)

What is the maximum payment I can select2?

The maximum payment is the one that fully exhausts the original principal, plus interest, over the chosen term and payment schedule. The following table illustrates a hypothetical investment of $100,000, earning 2%3 interest annually, and paid monthly over the course of a 5-year term:

Date Payment Capital portion Interest portion Cumulative income Remaining capital Cumulative interest
10/24/Year 1 $0.00 $0.00 $0.00 $0.00 $100,000.00 $0.00
11/30/Year 1 $1,752.77 $1,550.03 $202.74 $1,752.77 $98,449.97 $202.74
12/31/Year 1 $1,752.77 $1,585.54 $167.23 $3,505.54 $96,864.43 $369.97
01/31/Year 2 $1,752.77 $1,588.23 $164.54 $5,258.31 $95,276.20 $534.51
02/28/Year 2 $1,752.77 $1,606.60 $146.17 $7,011.08 $93,669.60 $680.68
04/01/Year 2 $1,752.77 $1,588.52 $164.25 $8,763.85 $92,081.08 $844.93
04/30/Year 2 $1,752.77 $1,606.45 $146.32 $10,516.62 $90,474.63 $991.25
... ... ... ... ... ...
05/31/Year 5 $1,752.77 $1,735.51 $17.26 $96,402.35 $8,761.46 $5,163.81
06/30/Year 5 $1,752.77 $1,738.37 $14.40 $98,155.12 $7,023.09 $5,178.21
07/31/Year 5 $1,752.77 $1,740.84 $11.93 $99,907.89 $5,282.25 $5,190.14
08/31/Year 5 $1,752.77 $1,743.80 $8.97 $101,660.66 $3,538.45 $5,199.11
09/30/Year 5 $1,752.77 $1,746.95 $5.82 $103,413.43 $1,791.50 $5,204.93
10/24/Year 5 $1,793.85 $1,791.50 $2.35 $105,207.28 $0.00 $5,207.28

What is the minimum payment I can select?

The minimum payment that you must take is one that exhausts a minimum of 50% of your original principal, throughout the term of your investment.

What happens if I select a payment that is smaller than the maximum payment?

You will not exhaust the original investment by the time the GIO reaches maturity. Thus, you will receive a lump sum at maturity (balloon) for the remaining portion of your original investment, plus interest.

How can I change my payments after I purchase a Guaranteed Income Optimizer?

You can change your payment amount at any time. All you need to do is talk to your Scotiabank advisor.

Can I change the term or frequency of payments after I purchased a GIO?

No, you cannot change the term or frequency of payments once the GIO is purchased. But you can change the amount of each payment.

Are there any fees associated with the Guaranteed Income Optimizer?

No.

Can I purchase the Guaranteed Income Optimizer jointly?

Yes. In order to jointly hold the GIO, you and the other owner must jointly hold the account in which you purchase the Guaranteed Income Optimizer.

Note: You cannot jointly purchase a Guaranteed Income Optimizer within a Tax Free Savings Account (TFSA).

What are some of the tax considerations for the Guaranteed Income Optimizer?

Tax slips will be issued for the interest paid up to the end of the calendar year in which it is earned.


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