Term savings
Like guaranteed investment certificates (GICs), term savings are investments that guarantee your principal and interest until maturity.
Guaranteed fixed-rate investments
- Principal 100% guaranteed
- Interest rate guaranteed until maturity
- Interest earned can be reinvested or paid out once a year
Guaranteed investments for retirement income
Get your principal back plus interest on your investments.
Are term savings the same as GICs?
Term savings are similar to GICs. They're both secured investments where you deposit money for a fixed period. You know how much interest you'll earn, and your return depends on the term length you choose.
FAQ
What is the difference between redeemable and non-redeemable term savings?
With non-redeemable term savings, you cannot withdraw your money until the end of the term.
Redeemable term savings are more flexible—you can withdraw funds before maturity. Depending on the type of term savings, you may be able to withdraw all or part of the amount you invested.
In both cases, term savings are fixed-term investments, which you must renew or cash out at maturity.
Do I have to pay taxes on the interest earned on term savings?
The interest you earn on your term savings is taxed every year unless you hold them in a registered savings plan like an RRSP, TFSA or FHSA, which offer various tax advantages.
To shelter your term savings from taxes, put them in an RRSP, TFSA or FHSA, depending on your goals and desired tax benefits.
Simple vs compound interest: What is the difference?
You can choose to earn simple or compound interest with certain term savings.
With simple interest, you earn interest only on your principal for the entire term. You can deposit the interest earned each year into another account.
Compound interest maximizes your return. When you choose compound interest, you earn interest on your principal and the interest earned in previous years. This interest gets reinvested in your term savings each year.
What is the difference between term savings and market-linked guaranteed investments (MLGIs)?
When you invest in term savings, your principal and returns are guaranteed. The interest rate is set and stays the same for the whole term, even if interest rates go up or down.
With market-linked guaranteed investments, your principal is also guaranteed, but you could earn more based on stock market performance. Depending on the MLGI you choose, you'll either get a guaranteed return combined with a possible variable return or a higher return linked directly to the market. You'll find out how much interest you've earned only when your investment matures.
Contact us
By phone
Montreal area:
514-224-7737 This link opens your phone app. (514-CAISSES)
Elsewhere in Canada:
1-800-224-7737 This link opens your phone app. (1-800-CAISSES)
Or we can call you when it's convenient.