TD Canada Trust announced the launch of the Security GIC Plus, an investment solution that combines the security of a conventional GIC with the potential growth performance of the S&P/TSX banks index and S&P TSX capped utilities index.

“This can be an ideal option for consumers who want the peace of mind of a guaranteed return with the potential to earn even more,” said Mushtak Najarali, associate vice president, retail products, TD Canada Trust. “The Security GIC Plus allows conservative investors to gain exposure to Canadian stock markets without risk of capital loss and, unlike most other index-linked GICs, the Security GIC Plus offers a guaranteed minimum return.”

The Security GIC Plus is available in a three- or five-year term, offering both a guaranteed minimum interest return and the potential for a bonus interest return. The minimum guaranteed interest return is 8% over three years and 13% over five years. The amount of the bonus interest return, if any, on the Security GIC Plus depends upon the change over the term of the GIC in the S&P/TSX Banks Index and the S&P/TSX Capped Utilities Index, with a 50% weighting to each index and is subject to a maximum return.

The maximum return is capped at 15% for a three-year term and 38% for a five-year term. At maturity, the principal will be repaid in full and the greater of the minimum return or the actual return up to the maximum return will be paid. The minimum principal amount is $1,000 for non-registered accounts and $500 for RSP accounts. The product is not redeemable prior to maturity.

The Security GIC Plus became available in TD Canada Trust branches on Wednesday.