Annuities are investments that pay an income on a periodic (monthly, quarterly, semi-annual or annual) basis. Annuities can be purchased with registered funds from individual RRSPs, locked-in RRSPs, pension plans or deferred profit sharing plans (DPSP). Annuities can also be purchased with non-registered funds. There are generally two types of annuities. Term certain annuities pay a periodic income for a specific predetermined period of time or number of payments. Life annuities pay a periodic income for as long as the annuitant or joint annuitants live.
- Single life male, no guarantee Registered
- Single life male, 10 year guarantee Registered
- Single life female, no guarantee, Registered
- Single life female, 10 year guarantee Registered
- Joint life, no guarantee Registered
- Joint life, 10 year guarantee Registered
Term deposits are investment products that offer a guaranteed rate of return for a pre-defined time period. The applicable interest rate varies according to the term of investment, the amount of money invested, the treatment of interest and whether or not the investment is redeemed prior to maturity. Term deposits are also known as GICs (Guaranteed Investment Certificates), or Accumulation Annuities when issued by an insurance company.
- Term Deposits/GGICs: 30 to 270 days, non-registered, not compounded
- Term Deposits/GGICs: 1 to 6 years, non-registered, not compounded
- US Term Deposits/GICs: 30 to 270 days
- US Term Deposits/GICs: 1 to 6 years
Deposit accounts (often referred to as a savings or chequing account) offer a variable interest rate which is often based on the balance in the account.