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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.
50/50 Capital Growth GIC Bundle (RRSP)
• Selling Period: May 2, 2012 – May 25, 2012
• Investment Start Date: May 28, 2012
• Total Minimum Combined Investment Amount: CAD $10,000
To purchase, visit your branch today.
Introducing the RRSP 50/50 Capital Growth GIC bundle from HSBC Bank Canada. A guaranteed investment that combines the growth potential of our Canadian index Stock Market GIC with a high rate income from a fixed rate term deposit. Whether you're looking for a secure interest paying investment or, a deposit with potential growth for your investment portfolio, the 50/50 Capital Growth GIC bundle can satisfy both needs.
The RRSP 50/50 Capital Growth GIC bundle is an innovative registered term investment solution from HSBC Bank Canada. 50% of your investment will earn annual income at a very competitive rate while the remaining 50% can earn a potentially higher rate of interest at maturity based on potential market growth - all in one investment!
Plus, your investment is 100% principal protected.
50/50 Capital Growth GIC Bundle (RRSP)
| INVESTMENT COMPOSITION | Stock Market GIC Portion (RRSP) | Special Rates RRSP GIC Portion |
| RETURN IS BASED ON | Performance of S&P/TSX 60® | Canadian Dollar Non-Redeemable 3 year GIC |
| TERMS AVAILABLE | 3 years | 3 years |
| PORTION OF PRINCIPAL INVESTED INTO THIS PRODUCT | 50% | 50% |
| MINIMUM RETURN RATE | 0% (0% annual compound equivalent) | 2.35% fixed rate (annual compound equivalent) |
| PARTICIPATION RATE (see how this is used in "Interest Calculation Method", below) | 45% | Not applicable |
| NUMBER OF INDICES | 1 | Not applicable |
| INDEX WEIGHTING | S&P/TSX 60® = 100% | Not applicable |
| 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. | Interest is calculated daily, compounded annually and paid at maturity. |
| MINIMUM INVESTMENT IN EACH PRODUCT | $5,000 | $5,000 |
| PRINCIPAL PROTECTION | 100% principal protected by the issuer | 100% principal protected by the issuer |
| CDIC COVERAGE | Eligible for CDIC insurance | Eligible for CDIC insurance |
| INTEREST RATE PRIOR TO THE START DATE (applicable to RRSP version only) | 0.25% during the selling period (RRSP only) | 0.25% during the selling period (RRSP only) |
| AVAILABLE ISSUERS | HSBC Bank Canada | HSBC Bank Canada |
| RESTRICTIONS | Non-redeemable, non auto-renewable, not eligible for RRIF/RESP/TFSA | Non-redeemable, non-renewable, not eligible for RRIF/RESP/TFSA |
To review examples of how a return is calculated when the Index Based Interest Rate is both positive and negative, please 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.
(Last updated: 2010 - 12 - 06)
For additional disclosure on the index referred to above, click S&P/TSX 60®,Refer to the product Standard Terms and Conditions (RRSP or non-RRSP) and the Stock Market GIC Term Sheet (Asian, Canadian, USA or Global options) for product details.
* Registered Savings Plan option available.
# For full details on sale dates, how interest is calculated and paid to you and for a description of the stock market index, please refer to the product Terms and Conditions and the Term Sheet. You may also obtain a copy of the Terms and Conditions and the Term Sheet at any HSBC branch. Rates are subject to change without notice. For information and to confirm most recent rates, please contact any HSBC branch.
