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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.
Stock Market GIC (RRSP)
• Selling Period: May 2, 2012 – May 25, 2012
• Investment Start Date: May 28, 2012
• Minimum Investment Amount: CAD $1,000 ($500 for RSP)
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 RRSP 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, 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.
Stock Market GIC (RRSP)
| 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) | S&P 500® Low Volatility Index | S&P BRIC 40 Index |
| TERM | 3 years | 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) | 50% | 50% | 75% | 65% |
| QUARTERLY OBSERVATION | 12 quarterly observation dates | 12 quarterly observation dates | 12 quarterly observation dates | 20 quarterly observation dates |
| 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% | S&P 500® Low Volatility 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 closing index level; (c) divide this difference by the initial closing index level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of indices (see section, above) to get the Weighted Average Index Return; (3.) multiply the Weighted Average Index Return by the Participation Rate. If the Weighted Average Index Return 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 closing index level; (c) divide this difference by the initial closing index level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of indices (see section, above) to get the Weighted Average Index Return; (3.) multiply the Weighted Average Index Return by the Participation Rate. If the Weighted Average Index Return 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 closing index level; (c) divide this difference by the initial closing index level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of indices (see section, above) to get the Weighted Average Index Return; (3.) multiply the Weighted Average Index Return by the Participation Rate. If the Weighted Average Index Return 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 closing index level; (c) divide this difference by the initial closing index level to get the Average Index Return; (2.) add the Average Index Return for each index and divide by the number of indices (see section, above) to get the Weighted Average Index Return; (3.) multiply the Weighted Average Index Return by the Participation Rate. If the Weighted Average Index Return 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 | 100% principal protected by the issuer | 100% principal protected by the issuer | 100% principal protected by the issuer |
| CDIC COVERAGE | Eligible for CDIC insurance | Eligible for CDIC insurance | Eligible for CDIC insurance | Eligible for CDIC insurance |
| INTEREST RATE PRIOR TO START DATE (applicable to RRSP only) | 0.25% during the selling period (RRSP only) | 0.25% during the selling period (RRSP 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 | HSBC Bank Canada | HSBC Bank Canada |
| RESTRICTIONS | 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 | 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, S&P 500® Low Volatility Index, S&P BRIC 40 Index
(Last Updated: 2010-12-06)
