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 a stock-market yield.

Like regular Squamish Savings term deposits, index-linked term deposits guarantee the principal investment and offer deposit insurance, within certain limits.

Investment Options
	Canadian-based Index-Linked Term Deposits – S&P/TSX 60
	Internationally-based Index-Linked Term Deposits – S&P 500

Index-linked term deposits are an ideal investment for:
	Conservative investors seeking to protect their principal, but wanting the potential to earn returns based on equity market performance.
	Investors seeking to diversify their investment portfolios.

How index-linked term deposits work

Strike date
	Index-linked term deposits are created on the first day of each new calendar quarter: January, April, July and October.
	The day a deposit is created is called the strike date.

Purchases before the strike date
	Like any other term deposit, an index-linked term deposit can be purchased at any time.
	Interest is calculated on a daily basis from the date of purchase until the next strike date. The rate is based on Vancity's three- or five-year term rate, depending on the length of the investment.

On the strike date
	The principal investment and interest earned from the purchase date are rolled into the index-linked term deposit.
	The closing value of the index on the last business day prior to the strike date becomes the beginning index value. This value is used to calculate the growth of the index during the term.
	If the index-linked term deposit offers guaranteed annual interest, it is calculated from the strike date.

Index-related income
	Index-related income is determined by the growth in your chosen index from the strike date to the end of the term*.
	If the value of the selected index is below the beginning index level, the entire principal investment along with guaranteed interest, is paid at maturity.
	Index-related income is credited at maturity. Guaranteed interest, if applicable, is compounded annually.
	For non-RRSP/RRIF index-related income, Vancity will issue a T5 when the interest is paid.

*To protect against significant declines at the end of the term, the returns will be averaged during the last year of the term. Returns may also be subject to a maximum cap. Please consult a Vancity representative for details on current product offerings.

**Stock market indices used are market value weighted (shares outstanding times stock price) in which each company's influence on the index performance is directly proportional to its market value. "TSX" is a trade-mark of The Toronto Stock Exchange. "Standard & Poor's", "S&P 500" are registered trade-marks of The McGraw-Hill Companies, Inc., dba Standard & Poor's. All rights reserved. References, if any, to any of the indexes of The Toronto Stock Exchange and Standard & Poor's are made solely for the purpose of describing Vancity's Index-Linked Term Deposits. Vancity's Index-Linked Term Deposits are not sponsored, endorsed, sold or promoted by either of The Toronto Stock Exchange or The McGraw-Hill Companies, Inc., and they make no representations regarding the advisability of investing in these products.

How to purchase a deposit

1. Call Member Service at 604-892-8350
2. Visit your branch