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Guaranteed Investment Certificates (GICs) are term investments that require you to "lock in" your investment for a set length of time. They generally pay higher rates of interest than term deposits but are often not redeemable before maturity.
Stock Market GICs (Non-Registered)
• Selling Period: January 30, 2012 – February 22, 2012
• Investment Start Date: February 27, 2012
• Minimum Investment Amount: CAD $1,000 ($500 for RSP)
• New! SMGIC Market Tracker
To purchase, call 1-888-310-HSBC (4722) or visit your branch today.
HSBC offers a wide selection of index-linked GICs that offer growth potential while fully protecting your principal. If the market increases over the term of your investment, you earn interest up to the maximum interest rate over the term (see chart below). Even if the market declines, your original investment is guaranteed and the full amount of your principal is returned at maturity.
Refer to the product Standard Terms and Conditions and the Stock Market GIC Term Sheet (Asian, Canadian, USA or Global options) for product details. To review examples of how a return is calculated when the Index Based Interest Rate is both positive and negative for both single and multiple underlying indices, see examples. We recommend that you review these examples carefully before purchasing your Stock Market GIC to ensure you understand how your applicable interest rate will be determined.
Stock Market GIC (Non Registered)
| Canadian | Asian | USA | BRIC - Global | |
| RETURN IS BASED ON THE PERFORMANCE OF | S&P/TSX 60® | Hang Seng Index®, KOSPI 200 Index, MSCI Singapore Index(SM), MSCI Taiwan Index(SM) | Dow Jones Industrial Average(SM) Index | S&P BRIC 40 Index |
| TERMS AVAILABLE | 3 years; 59 months | 3 years | 3 years | 59 months |
| MINIMUM RETURN RATE | 0% | 0% | 0% | 0% |
| PARTICIPATION RATE (see how this is used in "Interest Calculation Method", below) | 40% for 3 years; 75% for 59 month Premium Series (Premium Series is available only to HSBC Advance and HSBC Premier clients only); 70% for 59 month term (regular series) | 40% | 40% | 50% |
| QUARTERLY OBSERVATION | 12 quarterly observation dates for the 3 year term; 20 quarterly observation dates for the 59 month term | 12 quarterly observation dates for the 3 year term | 12 quarterly observation dates for the 3 year term | 20 quarterly observation dates for the 59 month term |
| NUMBER OF INDICES | 1 | 4 | 1 | 1 |
| INDEX WEIGHTING | S&P/TSX 60® = 100% | Hang Seng Index® = 25% KOSPI 200 Index = 25% MSCI Singapore Index(SM) = 25% MSCI Taiwan Index(SM) = 25% | Dow Jones Industrial Average(SM) Index = 100% | S&P BRIC 40 Index = 100% |
| INTEREST CALCULATION METHOD | Subject to the Minimum Return Rate, the amount of interest earned is calculated as follows: (1.) for each index, (a) take the average of the closing index levels on the preset quarterly observation dates; (b) subtract from the average the Initial Index Level; (c) divide this difference by the Initial Index Level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of applicable indices to get the Index Based Interest Rate; (3.) multiply the Index Based Interest Rate by the Participation Rate. If the Index Based Interest Rate multiplied by the Participation Rate is less than the Minimum Return Rate, only the Minimum Return Rate will be paid. | Subject to the Minimum Return Rate, the amount of interest earned is calculated as follows: (1.) for each index, (a) take the average of the closing index levels on the preset quarterly observation dates; (b) subtract from the average the Initial Index Level; (c) divide this difference by the Initial Index Level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of applicable indices to get the Index Based Interest Rate; (3.) multiply the Index Based Interest Rate by the Participation Rate. If the Index Based Interest Rate multiplied by the Participation Rate is less than the Minimum Return Rate, only the Minimum Return Rate will be paid. | Subject to the Minimum Return Rate, the amount of interest earned is calculated as follows: (1.) for each index, (a) take the average of the closing index levels on the preset quarterly observation dates; (b) subtract from the average the Initial Index Level; (c) divide this difference by the Initial Index Level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of applicable indices to get the Index Based Interest Rate; (3.) multiply the Index Based Interest Rate by the Participation Rate. If the Index Based Interest Rate multiplied by the Participation Rate is less than the Minimum Return Rate, only the Minimum Return Rate will be paid. | Subject to the Minimum Return Rate, the amount of interest earned is calculated as follows: (1.) for each index, (a) take the average of the closing index levels on the preset quarterly observation dates; (b) subtract from the average the Initial Index Level; (c) divide this difference by the Initial Index Level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of applicable indices to get the Index Based Interest Rate; (3.) multiply the Index Based Interest Rate by the Participation Rate. If the Index Based Interest Rate multiplied by the Participation Rate is less than the Minimum Return Rate, only the Minimum Return Rate will be paid. |
| PRINCIPAL PROTECTION | 100% principal protected by the issuer, either HSBC Bank Canada or HSBC Mortgage Corporation (Canada) for the 3 year term offering and by HSBC Bank Canada for the 59 month term offerings. | 100% principal protected by the issuer, either HSBC Bank Canada or HSBC Mortgage Corporation (Canada) | 100% principal protected by the issuer, either HSBC Bank Canada or HSBC Mortgage Corporation (Canada) | 100% principal protected by the issuer, either HSBC Bank Canada or HSBC Mortgage Corporation (Canada) |
| CDIC COVERAGE | Eligible for CDIC insurance | Eligible for CDIC insurance | Eligible for CDIC insurance | Eligible for CDIC insurance |
| AVAILABLE ISSUERS | 3 year term is issued by either HSBC Bank Canada or HSBC Mortgage Corporation (Canada); 59 month term is issued by HSBC Bank Canada | 3 year term is issued by either HSBC Bank Canada or HSBC Mortgage Corporation (Canada) | 3 year term is issued by either HSBC Bank Canada or HSBC Mortgage Corporation (Canada) | HSBC Bank Canada or HSBC Mortgage Corporation (Canada) |
| RESTRICTIONS | Non-redeemable, non-auto renewable, not eligible for RRIF/RESP/TFSA; 59 month term offers are not available in any registered plans. | Non-redeemable, non-auto renewable, not eligible for RRIF/RESP/TFSA | Non-redeemable, non-auto renewable, not eligible for RRIF/RESP/TFSA | Non-redeemable, non-auto renewable, not eligible for RRIF/RESP/TFSA |
Customers who purchase an HSBC Stock Market GIC over the telephone may cancel the purchase within two days after (i) the day of purchase; or (ii) the day on which a written copy of the HSBC Stock Market GIC Standard Terms and Conditions and Stock Market GIC Term Sheet has been provided to the customer, whichever of the two dates is later. Such written Terms and Conditions and Term Sheet will be deemed to have been provided to the customer on (i) the day recorded as the time of sending by the electronic transmission system, if provided by electronic means; (ii) on the day recorded as the time of sending by fax machine, if provided by fax; (iii) five days after the postmark date, if provided by mail; and (iii) when it is received, in any other case. Customers may cancel a purchase by calling 1-888-310-HSBC (4722).
For additional disclosure on the indices referred to above, click S&P/TSX 60®, Hang Seng Index®, KOSPI 200 Index, MSCI Singapore IndexSM, MSCI Taiwan IndexSM, Dow Jones Industrial AverageSM Index, S&P BRIC 40 Index
(Last Updated: 2010-12-06)
