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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.
The TFSA Redeemable GIC savings option allows you to earn interest on your deposit free from Canadian income tax. The TFSA Redeemable GIC features the ability to invest funds at a fixed rate for a 1-year term with the ability to redeem prior to maturity with no interest penalty after 89 days. Learn more about TFSAs.
Features:
- Redeemable on or after 90 days with no interest penalty; redeemable at 0% interest during the first 89 days.
- Interest is calculated daily, not compounded and paid at time of redemption or at maturity.
Updated 2012-01-20
TFSA Redeemable GIC
| Interest Rate | |
| 1 year term only (min. $1,000) | 0.95% |
| Redeemable on or after 90 days with no interest penalty. No interest paid if redeemed within 1-89 days. Interest is calculated daily, non-compounded and paid at time of redemption or at maturity. |
| Select Term Deposits and GICs booked through HSBC's Internet Banking may be eligible for special pricing. Log on to Internet Banking for more details. |
| Rates are subject to change without notice. For information and to confirm most recent rates, please contact any HSBC branch. |
1 Only Canadian residents, who are over 18 years of age and have a valid Social Insurance Number, can make contributions to a Tax-Free Savings Account (TFSA). Annual contributions to TFSAs are subject to specific limits. Generally, the maximum contribution room for a year is equal to the total of unused TFSA contribution room from previous years, distributions (withdrawals) from TFSAs made in previous years and TFSA dollar limit for the year in question ($5,000 which may be increased for inflation). The 2010 TFSA dollar limit is anticipated to be $5,000. The maximum annual contribution applies to all of your TFSAs held with HSBC or any other financial institution. Provided that contribution limits are not exceeded, income earned in a TFSA is not subject to Canadian taxes. Taxes of other countries may apply. Excess contributions to your TFSA are subject to taxes, interest and penalties. Unlike an RRSP, any money you contribute to a TFSA will not itself be tax-deductible.
The content herein is not intended to provide specific tax advice and should not be relied upon in this regard. HSBC makes no guarantee, representation, or warranty and accepts no responsibility or liability as to the tax treatment of these services. For full details about TFSAs and how they relate to your own income tax and financial situation, please consult your personal tax advisor.
