Rbc equity linked gic calculator

While, the actual return cannot be calculated prior to the maturity of your RBC Equity-Linked GIC and will likely differ from the return as provided by the calculator, this tool can give you an approximate idea of your equity-linked GIC's likely performance.

Reading up on personal finance? Looking for ways to maximize your savings and investments? Instantly compare the best accounts in Canada and boost your ROI. In recent years, banks have introduced a twist on the traditional guaranteed investment certificate GIC. These products, known as market-linked or equity-linked GICs, are tied to the performance of the equity market and follow stock or bond indexes. They guarantee the original principal, and offer the potential for higher returns, depending on how a specified market performs over a 3 or 5-year period. In essence, the appeal of a market-linked GIC is that it comes with deposit insurance up to the eligible limits, and with the possibility of reaping the upside returns of the equity market.

Rbc equity linked gic calculator

Choose a GIC with a guaranteed minimum return and associated maximum return—or one with no guaranteed minimum return and unlimited return potential. In this scenario, the increase is above the minimum and below the maximum. Get an indication of the current value of your GIC 1. Menu list Articles list Location list Contact list. Select Destination. Select Region Canada. Select Language English French. Contact Menu. Select Category:. The Right Choice If You. Want the growth potential of U. Need a guaranteed minimum return and the potential for higher earnings Will not need regular income from your investment Compare GICs. Higher Return Potential Participate in the returns of a U.

Minimum and Maximum Returns. In this case, the ISL used in the calculation will be the actual index level on the business day following the anniversary day or second business day for Global Market-Linked GIC.

To calculate your variable return payment, multiply the principal by the variable return. If the variable return is below the minimum return, adjust it upwards to the minimum return set out at the time of purchase. If the variable return is above the maximum return, adjust it downwards to the maximum return set at the time of purchase. Calculation Sample. If after five years, the Index Settlement Level is 1,, then your variable return payment would be calculated as:. Using this same example, if after five years, the Index Settlement Level drops to instead, the index would have returned If the index performs negatively or beneath the minimum return your variable return will always be at least at the minimum return and your principal will be fully guaranteed.

While, the actual return cannot be calculated prior to the maturity of your RBC Equity-Linked GIC and will likely differ from the return as provided by the calculator, this tool can give you an approximate idea of your equity-linked GIC's likely performance. How returns are calculated opens modal window. Calculate Return Value. Based on the purchase date of January 22, , your estimated variable rate of return is: 1. Note that the Current Index Level used in this calculation is based on the average of the latest month-end reference index values up to a maximum of 12 months. Based on the purchase date of January 22, , your GIC will mature on approximately January 22,

Rbc equity linked gic calculator

Choose a GIC with a guaranteed minimum return and associated maximum return—or one with no guaranteed minimum return and unlimited return potential. In this scenario, the increase is above the minimum and below the maximum. Get an indication of the current value of your GIC 1. Menu list Articles list Location list Contact list. Select Destination. Select Region Canada. Select Language English French. Contact Menu. Select Category:. The Right Choice If You.

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GIC Product:. Cashable GIC allows flexible access to funds at any time; cash-out or reinvest in another product if interest rates decrease. To Top. Our Take. In this case, the ISL used in the calculation will be the actual index level on the business day following the anniversary day or second business day for Global Market-Linked GIC. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator. It is possible that there may be no return. No interest paid if cashed in the first 29 days. National Bank Canadian Sustainable. This means that you might miss out on earning higher returns if market rates rise during your term.

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In recent years, banks have introduced a twist on the traditional guaranteed investment certificate GIC. This means that for every increase or decrease in the performance of the index, your GIC will rise or fall by that amount, multiplied by the participation rate. For full product details, including how variable return is calculated, refer to the fact sheet and special conditions , visit your RBC branch or call Conditions apply. Again using this same example there is one other scenario that could arise. Meridian American Diversified. Affinity Credit Union Financial Services. There is no fee charged for a purchase of GIC. This meant an actual return being paid based on the GIC's minimum return of 3. Are willing to accept a variable, rather than guaranteed, rate of return. Rate calculated on a per annum basis. This index, which is widely quoted, measures the stock performance of some of the largest companies in Canada. Personal Banking. Or, if you need additional support, you can contact RBC over the phone or walk into a branch. GICs typically guarantee that you will retain your entire principal investment but may offer a lower return than other investment options, like individual stocks or index funds.