Guaranteed Investment Accounts (GIAs)
Fixed Interest
FIXED INTEREST ACCOUNTS
VOLATILITY METER
Based on 3 year standard deviation from Globefund.com
HOW THE GUARANTEED INVESTMENT ACCOUNTS WORK
Similar to Guaranteed Investment Certificates (GICs) offered by banks and trust companies, these accounts guarantee an interest rate from the day you invest your money until maturity. At maturity, your original investment and interest earned will reinvest for the same term unless you provide Manulife with different instructions prior to maturity.
Volatility and Risk
These accounts offer good returns and excellent investment security. Consider these accounts if you are an investor who needs guaranteed security for your investment and can commit to investments for a fixed period of time. There is no volatility associated with the return in this account and there is minimal risk as this is a guaranteed investment backed by the general assets of Manulife Financial.
INTEREST GUARANTEE
The annual interest rate that applies to a GIA is guaranteed to be at least:
•90% of the interest rate representing the effective annual yield on current coupon Government of Canada bonds with the same term period and effective date as the guaranteed investment account minus the guaranteed management fee, or
•0% if the term is 3 years or less, 2% if the term is 5 years, 3% if the term is 10 years or longer,
whichever is greater
CREDITED INTEREST RATES AVAILABLE (as at July 29, 2010)
| 1 Year | 3 Year | 5 Year | 10 Year | 20 Year | |
|---|---|---|---|---|---|
| Limited Pay UL | |||||
| Simple Interest | 0.550% | 1.650% | 2.375% | - | - |
| Compound Interest | - | 1.650% | 2.375% | - |