RRSPs
& RRIFs
All
of Niagara's RRSPs and RRIFs are insured through DICO
- the Deposit Insurance Corporation of Ontario. All Registered Plans
are separately insured up to $100,000
each*. 
Niagara's
Retirement Builder program is
a pain-free systematic way to save for the future. With Retirement
Builder you simply decide the amount to deposit to an RRSP and the
frequency of the deposits (weekly, bi-weekly, monthly or any days
that you like). We do the rest. A tax receipt is issued twice a
year. With the benefit of compound interest, the value of your RRSP
increases each year.
Other RRSP and RRIF deposit options are 1-5 year term deposits,
30-364 day short term deposits, and Variable Account RRSPs (fluctuating
tiered interest rate).
View the most current rates for eligible term
deposits.
(*RRSP
and RRIF funds invested in NCU Class "A" shares and mutual
funds are not insured)
Term
Deposits
Niagara
offers both short term (30-364 days) and long term (1-5 years)
deposits at competitive interest rates. Also, a favorite of our
members are our Flexi-Certificates, which are only sold for a
limited time and at specific times in the year.
You can choose to have the interest compound, within the term
or have the interest paid out to an account of your choice.
Your
deposits are safe with Niagara Credit Union.
Niagara
Credit Union deposits are insured by DICO
- Deposit Insurance Corporation of Ontario.
5
Year Rate Builder
- Interest
Rate
Year 1 - 2.30%
Year 2 - 2.50%
Year 3 - 3.00%
Year 4 - 4.00%
Year 5 - 6.50%
- Minimum
Deposit required
- Registered
Only.
- Interest
paid annually.
3
Year Premium Flexi Certificate
- Interest
Rate
Year 1 - 2.30%
Year 2 - 2.55%
Year 3 - 3.55%
- Minimum
Deposit of $1000 ($500 for Youth, Student and Trust accounts)
- Registered
and Non-Registered available.
- Interest
paid annually or compounded.
- Cashable
without penalty on each anniversary date and 30 days thereafter.
18
Month Term Deposit
- Interest
Rate - 2.55%
- Minimum
Deposit of $1000 ($500 for Youth, Student and Trust accounts)
- Registered
and Non-Registered available.
- Interest
compounded annually.
5
Year Market Secure GIC
A
term deposit that pays a rate of return based on the performance
of the S&P/TSX 60 stock market while providing a 100% principal
guarantee.
Minimum
Investment:
$500 - RRSP
$1000 - Non RRSP
Calculation
Method:
Average of S&P/TSX 60 monthly closing values.
- 5
year term
- principal
guaranteed
- participation
rate of 125%
- interest
paid at maturity
- redeemable
only at maturity
At the end of each month, the S&P/TSX 60 post
a closing value for the index. This investment averages those
closing values over the 60 months of the investment. The averaging
protects the investment from severe short-term market fluctuations.
The interest earned will be based on the average return of the
Index for the 5 years of theinvestment period. The average is
calculated by adding the Month-End Closing Values ofthe Index
and dividing the sum by the Total Number of Months. It is then
compared tothe Opening Value of the Index to determine the percentage
change. That change is then multiplied by the participation rate
giving the overall return.
For example: If, on a start date, the S&P/TSX 60 Index is
valued at 500, and the Average Month-End Closing Value over the
(60 months) 5 years of the term is calculated to be 700, and the
Participation Rate is 125%, then the return over the life of the
investment would be calculated as follows:
|
FORMULA
|
Average Month End
Closing Value MINUS Start Value |
X |
Participation Rate =
Return |
 |
|
Start Value |
|
|
|
EXAMPLE
|
700 - 500 |
X |
1.25 = .50 [or 50%] |
|
|
500 |
|
|
The
simple annual rate of return would then be:
50% / 5 Years = 10% per year
Recent offerings of the Market Secure GIC and their starting value:
(Note - all these terms earn 125% of the average monthly growth
in the S&P/TSX 60 Index (over the 60 months (5 years) of the
investment)
February
14, 2003
• Opening Value of Index: 367.12
April
3, 2003
• Opening Value of Index: 365.60
May
16, 2003
• Opening Value of Index: 383.12
July
10, 2003
• Opening Value of Index: 399.29
March
5, 2004
• Opening Value of Index: 490.79
May 27th 2004
• Opening Value of Index: 460.12
July
8th 2004
•
Opening Value of Index: 464.80
August
19th 2004
• Opening Value of Index: 460.87
October 8, 2004
• Opening Value of Index: 490.42
November 18, 2004
• Opening Value of Index: 498.74
December 17, 2004
• Opening Value of Index: 506.59
Jan 27th 2005
• Opening Value of Index 505.61
March 11th 2005
• Opening Value of Index 532.74
What
is the S&P TSX 60 index? .... click
here to go directly to the Standards and Poors site
explaining the composition of the index
What companies make up the index?....see
the "FILE
DOWNLOADS" section and select either XLS (Excel)
or CSV file format to see the companies that make up the index.
How has the index performed recently?....click
here to go directly to a chart of the past years
performance (NOTE - once there you can reformat the view to encompass
3 years - 5 years or the past few months).
Call the Contact Centre: 905-688-7777
or 1-800-392-8657 or visit your branch for more information.
(Limited
time offers. Rate(s) subject to change without notice.)
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