Laurentian Bank of Canada has launched the first term note, commonly referred to as a step-up bond, to be offered in-branch.

Usually distributed through brokers, the product, with a potential term to maturity of five years, offers a higher rate of interest than guaranteed investment certificates.

The term note is redeemable annually by Laurentian Bank. The average annual return on the five-year term note issued during the period from January 16 to February 10, 2006, is 4.17%. The note pays a 3.60% rate for the first year, a 3.75% rate for the second year, a 4% rate for the third year, a 4.50% rate for the fourth year and a 5% rate for the fifth year.

“Our new product is the ideal solution for people who look for an investment that would protect their initial investment capital, who want to maximize their return on investment and who prefer to know in advance the future value of their investment. It requires a minimum investment of $2,500 if placed in a Registered Retirement Savings Plan or $5,000 if placed in a non-registered account,” said Bianca Dupuis, senior manager, investment product development, Laurentian Bank.