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With Scotiabank’s Market Powered™ GIC, you can experience the potential upside of stock market investing with no downside risk to your principal investment and a guaranteed annual interest rate1.
Key Features:
- Guaranteed principal
- Guaranteed annual interest rate determined at the time you invest
- Potential to earn additional income based on the performance of the S&P/TSX 60† Index, up to a specified maximum return
Consider this GIC if:
- You have longer-term goals and wish to invest for a 3-year or 5-year term
- You want the opportunity to participate in the growth potential of the Canadian stock market
Good to know
- You are guaranteed an annual return, PLUS the potential to earn additional returns based on gains in the S&P/TSX 60 Index, up to a specified maximum return‡.
- Any additional returns are paid at maturity.
| At a Glance |
| Minimum Investment |
- $1,000 for annual or annual compound interest payments (Canadian dollars only)
- $5,000 for monthly interest payments (Canadian dollars only)
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| Term |
- 3 or 5 years from issue date
- Non-transferable and non-redeemable until maturity |
| Guaranteed Annual Interest Rate |
Set on the first day of each new issue. Varies by issue date. |
| Maximum Return2 |
Set on the first day of sales for each new issue. Varies by issue date. |
| Interim Interest Rate |
- Our regular 3-year or 5-year (as applicable) non-redeemable GIC posted rate at the time of purchase.
- On the issue date, the interim interest earned is added to the initial investment amount and becomes the issue amount, which is fully guaranteed. |
| Interest Payment Frequency |
RRSPs:
- Guaranteed annual interest income – compounded annually and paid at maturity (with $1,000 minimum investment)
- Potential additional returns – paid at maturity
RRIFs:
- Guaranteed annual interest income – compounded annually and paid at maturity (with $1,000 minimum investment)
OR
- Guaranteed monthly interest income calculated and paid monthly (with $5,000 minimum investment)
- Potential additional returns – paid at maturity
Non-registered Plans:
- Guaranteed annual interest income – compounded annually and paid at maturity or paid annually (with $1,000 minimum investment)
OR
- Guaranteed monthly interest income calculated and paid monthly (with $5,000 minimum investment)
- Potential additional returns – paid at maturity
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| Issuers* |
- The Bank of Nova Scotia
- Montreal Trust Company of Canada
- National Trust Company |
Further Information
To ensure you understand what you are buying and the associated risks, the summary and description of features of this product are set out in the following documents:
Check rates for the next issue
1 Changes to the S&P/TSX 60 Index will, however, affect the amount of the additional interest.
† "Standard and Poor's" and "S&P" are trademarks of The McGraw-Hill Companies, Inc. "TSX" is a trademark of The Toronto Stock Exchange. These marks have been licensed for use by The Bank of Nova Scotia and its subsidiary companies. Market Powered GICs are not sponsored, endorsed, sold or promoted by Standard & Poor's or The Toronto Stock Exchange and neither party makes any representation, warranty, or condition regarding the advisability of investing in this product.
‡ The Market Powered GIC has two components to its total rate of return:
- A guaranteed annual interest rate, based on current interest rates, set prior to the first day of sales for each new Market Powered GIC issue.
- Plus, the potential for an additional return based on participation in the performance of the S&P/TSX 60 Index, up to a specified maximum return.
How potential additional return is calculated
The potential additional return is determined by calculating the difference between the average value of the S&P/TSX 60 Index during the term of your Market Powered GIC and the opening index value for your Market Powered GIC, divided by the opening index value. Potential additional return is capped at a specific maximum return.
- The average value of the S&P/TSX 60 Index during the term of your Market Powered GIC is equal to the average of the S&P/TSX 60 Index values of 60 (for a 5-year term) or 36 (for a 3-year term) observation points. The first 59 points (or 35, as applicable) occur at the close of business on the third Thursday of every month following the month your Market Powered GIC is issued. The final observation point occurs at the close of business on the date that is two business days prior to the maturity date of your Market Powered GIC.
- The opening index value is the value of the S&P/TSX 60 Index on the date that is two business days after the issue date of your Market Powered GIC.
- Changes in the performance of the S&P/TSX 60 Index will affect the additional return payable under the Market Powered GIC. If, at maturity, the difference between the average value of the S&P/TSX 60 Index during the term of your Market Powered GIC is less than or equal to the opening index value for your GIC, the additional return will be 0%.
2 The maximum return rate is determined based on the prevailing interest rates and stock market conditions, and is set prior to the first day of sales for each new Market Powered GIC issue. The maximum return applies to the full term and is not an annual rate or a rate of return. The potential for an additional return on your Market Powered GIC is based on the performance of the S&P/TSX 60 Index. Any additional interest earned is paid at, and not before, maturity; however, there is no guarantee that you will earn additional interest. Guaranteed annual interest will also be paid at maturity or, where applicable, annually.
* The Bank of Nova Scotia, Montreal Trust Company of Canada and National Trust Company each reserve the right to withdraw this offer at any time.
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