The National Bank has launched a new, escalating GIC product. The “Escalarater” is designed for investors who want guaranteed returns and the flexibility to take advantage of rising interest rates.
With the product, if rates rise, an investor can opt to redeem his investment before maturity to take advantage of rate increases.
“The return offered by the Escalarater compares favourably with other products on the market. The fact that it is redeemable makes it attractive to customers who want some liquidity”, said Jean Blouin, VP – deposit solutions and credit, in a news release.
The GIC is offered with either a three-year or five-year term. The three-year GIC, redeemable in full on its anniversary dates after the first year, offers an average return of 2.614%, while the non-redeemable GIC has an average return of 3.009%.
The average return on the five-year GIC, which can be redeemed in its entirety on its anniversary dates after the second year, is 3.292%, while the average return on a non-redeemable GIC is 3.634%.
The Escalarater is available at all National Bank branches. The minimum investment is $500.