TD Canada Trust GIC and Term Deposit Product and Rate Information

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4 Canadian GIC Rates - TD Canada Trust Page 1 of 3 06/09/2008 Skip to content Apply Search Contact Us Login to: EasyWeb My Accounts Customer Service Banking Investing Insurance Small Business Products & Services Markets & Research Planning TD Canada Trust GICs & Term Deposits Canadian$ Products Term Deposits GICs Special GICs Pre-encashables Market Growth GICs Foreign Currency Products US$ Term Deposits US$ GICs Other Foreign $ Term Deposits Act Now Purchase a GIC Renew a GIC Fixed Income Money Market Mutual Funds RSPs RESP Retirement Income Options Group Savings Plan Investment Lending Services TD Waterhouse GICs & Term Deposits TD Canada Trust GIC and Term Deposit Product and Rate Information Rates are subject to change without notice at any time. Canadian Dollar Cashable Products Product Name Term Rates for Non-registered Term Deposit (long-term) Rates for registered 1 year 2.00% n/a 2 years 2.35% n/a 3 years 2.60% n/a 4 years 2.70% n/a 5 years 2.95% n/a Wait & See 1 year 2.05% 2.05% Money Market GIC Premium Rate Redeemable GIC 1 year September: 2.50% September: 2.50% 2 years 3.70% 3.70% Rates & Numbers Rate Information Tools & Resources CDIC Information TD Canada Trust Market Growth GICs: FAQ Benefits of Laddering GIC Maturities Comparison Chart GIC Selector Subscribe What is RSS? TD Canada Trust RSPs Begin contributing as early as possible! Open a new RSP account! GIC 2 years 1st year 2.75% 2nd year 4.75% Effective Annual Yield 3.745% 1st year 2.75% 2nd year 4.75% Effective Annual Yield 3.745% Triple Value GIC 5-Year Stepper GIC 3 years 1st year 2.75% 2nd year 3.90% 3rd year 5.00% Effective Annual Yield 3.879% 5 years 1st year 2.75% 2nd year 3.20% 3rd year 3.70% 4th year 4.30% 5th year 7.00% Effective Annual Yield 4.179% 1st year 2.75% 2nd year 3.90% 3rd year 5.00% Effective Annual Yield 3.879% 1st year 2.75% 2nd year 3.20% 3rd year 3.70% 4th year 4.30% 5th year 7.00% Effective Annual Yield 4.179% Top Canadian Dollar Non Cashable Products

5 Canadian GIC Rates - TD Canada Trust Page 2 of 3 06/09/2008 Product Name Term Rates for Non-registered Rates for registered Guaranteed Investment Certificate (GIC) (short-term) 30 days 1.75% n/a 60 days 1.75% n/a 90 days 1.80% 1.80% 120 days 1.80% 1.80% 180 days 1.85% 1.85% days 1.90% 1.90% Guaranteed Investment Certificate (GIC) (Long- Term & Simple Interest) 1 1 year 2.25% 2.25% 2 years 2.60% 2.60% 3 years 2.85% 2.85% 4 years 2.95% 2.95% 5 years 3.20% 3.20% Guaranteed Investment Certificate (GIC) (Long- Term & Compound Interest) 1 GIC with Special Pricing* (under $100,000) *product minimums apply GIC with Special Pricing ($100,000 and above) 1 year 2.25% 2.25% 2 years 2.60% 2.60% 3 years 2.85% 2.85% 4 years 2.95% 2.95% 5 years 3.20% 3.20% days 2.60% n/a days 2.85% 2.85% 1 year 3.05% 3.05% days 2.80% n/a days 3.05% 3.05% 1 year 3.20% 3.20% Premium Rate 90 days 3.05% n/a Business GIC 6 Special Edition 19- Month GIC 19 months 3.40% 3.40% GIC Plus 3 years Return 4 is 21% 5 years Return 4 is 60% U.S. GIC Plus 3 years Return 4 is 20% 5 ans Return 4 is 43% Global GIC Plus 3 years Return 4 is 20% 5 years Return 4 is 50% Return 4 is 21% Return 4 is 60% Return 4 is 20% Return 4 is 43% Return 4 is 20% Return 4 is 50% Financials GIC Plus 3 years Return 4 is 35% Return 4 is 35%

6 Canadian GIC Rates - TD Canada Trust Page 3 of 3 06/09/2008 Utilities GIC Plus Security GIC Plus 5 years Return 4 is 75% 3 years Return 4 is 25% 5 years Return 4 is 75% 3 years Minimum Return is 7.5% 3 Return 4 is 20% 5 years Minimum Return is 15% 5 Return 4 is 40% Return 4 is 75% Return 4 is 25% Return 4 is 75% Minimum Return is 7.5% 3 Return 4 is 20% Minimum Return is 15% 5 Return 4 is 40% Top U.S. Dollar Cashable Products Product Name Term Rates US$ Term Deposit 30 days 1.40% 60 days 1.45% 90 days 1.60% 180 days 1.70% days 1.80% Top U.S. Dollar Non Cashable Products Product Name Term Rates U.S. Dollar GIC (Long- Term and Simple Interest) 2 1 year 2.35% 2 years 2.65% 3 years 2.75% 4 years 2.85% 5 years 3.00% Top 1 Online Purchase/renewal Bonus of 0.50% 2 Online purchase/renewal Bonus of 0.25% 3 Equivalent to 2.5% per annum, compounded annually, payable at maturity. 4 Equivalent to the total return over the term of the investment (i.e. not an annualized rate) 5 Equivalent to 2.9% per annum, compounded annually, payable at maturity. 6 Available to Small Business Banking customers only. Print this page Privacy Policy Internet Security Legal TD Group Financial Services Site - Copyright TD

7 SECTION 1 - EFFECTIVE RATES OF INTEREST AND DISCOUNT SECTION 1 - EFFECTIVE RATES OF INTEREST AND DISCOUNT Sections of "Mathematics of Investment and Credit" (3rd ed.) Simple interest At annual simple interest rate, an initial investment of amount 1 accumulates to at time. is usually measured in years in the form of ordinary simple interest, in which, where is the number of months of accumulation (this method is assumed if time is measured in months). Other methods of measuring are based on exact simple interest, with 365, where is the exact number of days of accumulation, and the Bankers rule, in which 360. Simple interest accumulation is usually restricted to periods of less than one year. Compound interest At annual effective compound interest rate, an initial investment of 1 accumulates to at time (years). Often, is a positive integer, but can also involve a fractional value with accumulation sometimes referred to as true compound interest. An effective interest rate can be specified for any period of time (such as month, quarter, etc.) and compounding can be done accordingly, in which case, will be measured in appropriate units of time (months, quarters, etc.). Note that for, for and for For instance. Example 1 (SOA): Money accumulates in a fund at an effective annual interest rate of during the first 5 years, and at an effective annual interest rate of thereafter. A deposit of 1 is made into the fund at time 0. It accumulates to 3.09 at the end of 10 years and to at the end of 20 years. What is the value of the deposit at the end of 7 years? Solution: The accumulated value at time 10 is, accumulated value at time 20 is. Then Accumulated value at the end of 7 years is SOA Exam FM/CAS Exam 2 Study Guide S. Broverman

8 INTEREST RATE MEASUREMENT 5 on January 1, 2004 then he would have interest added to his account at the close of business on December 31 of 2004 and every December 31 after that as long as the account remained open. It would be generally understood, however, that interest is accruing on the account throughout the year, so that if Smith were to close the account between interest credit dates, say on August 1, 2004, a fraction of that year s interest would be paid. It is useful to regard the underlying accumulation of interest as a continuous process for which the annual (or quarterly or monthly) crediting of interest reflects the practical aspect of administering the accumulation. This is discussed more fully just after Example 1.3. It is possible that the rate of interest will change from one year to the next. If the interest rate is i 1 in the first year, i 2 in the second year, and so on, then after n years an initial amount C will accumulate to C(1 + i1)(1 + i2) (1 + i n ), where the growth factor for year t is 1+ it and the interest rate for year t is i t. Note that year t starts at time t 1 and ends at time t. This is illustrated in the following example. Example 1.2 (Average annual rate of return) The excerpts below are taken from the 2002 year-end report of Altamira Corp., a Canadian mutual fund investment company. The excerpts below focus on the performance of the Altamira Income Fund during the five year period ending December 31, CANADIAN INCOME FUNDS Altamira Income Fund Data per Unit Ratios/Supplemental Data Total net assets, end of year ($millions) $410.0 $386.1 $376.4 $422.8 $519.5 Average net assets ($millions) $398.6 $377.1 $382.5 $478.1 $538.9 Management expense ratio 1.07% 1.07% 1.07% 1.07% 1.07% Portfolio turnover rate 188.8% 417.7% 374.7% 184.5% 726.5% Annual rate of return 6.9% 6.4% 9.4% (3.0%) 7.8% Average Annual Return for the periods ended December 31, 2002 Inception Date 1 yr % 2 yrs % 3 yrs % 5 yrs % Canadian Money Market Fund Altimira T-Bill Fund 05/05/ Canadian Income Funds Altamira Income Fund 02/19/ Altamira Bond Fund 07/21/ Altamira High Yield Bond Fund 08/03/95 (6.6) (4.7) (5.4) (1.4) FIGURE 1.4

9 6 CHAPTER 1 The highlighted line Annual rate of return gives the annual return for the Altamira Income Fund for each of the five calendar years 1998 through The highlighted line Altamira Income Fund gives the average annual return for various lengths of time ending December 31, For the five year period, the total compound growth in the fund can be found by compounding the annual rates of return of 7.8% in 1998, 3.0% in 1999, 9.4% in 2000, 6.4% in 2001 and 6.9% in 2002: ( )(1.03)( )( )( ) = This would be the value on December 31, 2002 of an investment of 1 made into the fund on January 1, The five year growth can be described by means of an average annual return per year for the five year period. It is understood in financial practice that the phrase average annual return refers to annual compound rate of interest for the period of years being considered. The average annual return would be i, where 5 (1 + i) = Solving this equation for i results in a value of i =.054. This is the interest rate listed as the average annual return for the fund for the five year period ending December 31, Other average annual rates can be found in a similar way EFFECTIVE RATES OF INTEREST AND COMPOUNDING In practice interest may be credited or charged more frequently than once per year. For example many bank accounts pay interest monthly and credit cards generally charge interest monthly on previous unpaid balances. If an initial deposit is allowed to accumulate in an account over time, the algebraic form of the accumulation will be similar to the one given earlier for annual interest. At interest rate j per compounding period, an initial deposit of amount C will accumulate to C(1 + j) n after n compounding periods. (It is typical to use i to denote an annual rate of interest, and in this text j will often be used to denote an interest rate for a period of other than a year.) For instance, at an interest rate of.75% per month on a bank account, with interest credited monthly, an initial deposit of C would accumulate to C (1.0075) n at the end of n months. The growth factor for a one-year 12 period at this rate would be (1.0075) = The account earns 9.38% over the full year. This interest rate of 9.38% is called the effective annual rate of interest earned on the account. In general, the effective annual rate

10 10 CHAPTER SIMPLE INTEREST In practice, when calculating interest accumulation over a fraction of a year, a variation on compound interest is often used. This variation is commonly known as simple interest. At an interest rate of i per year, an amount of 1 invested at the start of the year grows to 1+ i at the end of the year. If t represents a fraction of a year, then under the application of simple interest, the accumulated value at time t of the initial invested amount of 1 is at () = 1 + it. (1.2) As in the case of compound interest, for a fraction of a year, t is usually either m 12 or d 365, depending on whether time is described in m months or d days. Short term transactions for periods of less than one year are often formulated on the basis of simple interest at a quoted annual rate. The following example refers to a promissory note, which is a short-term contract (generally less than one year) requiring the issuer of the note (the borrower) to pay the holder of the note (the lender) a principal amount plus interest on that principal at a specified annual interest rate for a specified length of time, at the end of which the payment is due. It is the convention in financial practice that promissory note interest is calculated on the basis of simple interest. The interest rate earned by the lender is sometimes referred to as the yield rate earned on the investment. As concepts are introduced throughout this text, we will see the expression yield rate used in a number of different investment contexts with differing meanings. In each case it will be important to relate the meaning of the yield rate to the context in which it is being used. EXAMPLE 1.4 (Promissory note and simple interest) On January 31 Smith borrows 5000 from Brown and gives Brown a promissory note. The note states that the loan will be repaid on April 30 of the same year, with interest at 12% per annum. On March 1 Brown sells the promissory note to Jones, who pays Brown a sum of money in return for the right to collect the payment from Smith on April 30. Jones pays Brown an amount such that Jones yield (interest rate earned) from March 1 to the maturity date can be stated as an annual rate of interest of 15%.

11 INTEREST RATE MEASUREMENT 11 (a) Determine the amount that Jones paid to Brown and the yield rate (interest rate) Brown earned quoted on an annual basis. Assume all calculations are based on simple interest and a 365 day year. (b) Suppose instead that Jones pays Brown an amount such that Jones yield is 12%. Determine the amount that Jones paid. SOLUTION (a) We first find the payment required on the maturity date April 30. This is (.12) 89 ( 365) = (there are 89 days from January 31 to April 30 in a non-leap year; financial calculators often have a function that calculates the number of days between two dates). Let X denote the amount Jones pays Brown on March 1. We will denote by j 1 the annual yield rate earned by Brown based on simple interest for the period of t 29 1 = years from January 31 to March 1, and we will 365 denote by j 2 the annual yield rate earned by Jones for the period of t 60 2 = years from March 1 to April 30. Then X = 5000(1 + tj ) and the amount paid on April 30 by Smith is X(1 + t2j2) = The following time-line diagram indicates the sequence of events. January 31 March 1 April 30 Smith borrows Brown receives Jones receives 5000 from Brown X from Jones from Smith FIGURE 1.6 We are given j 2 =.15 (the annualized yield rate earned by Jones) and we can solve for X from X = t = = 60 2j2 1+ ( 365 ) Now (.15) that X is known, we can solve for j 1 from X = = 5000(1 + tj 1 1) = ( 1+ j 365 1) to find that Brown s annualized yield is j 1 =.0565.

12 12 CHAPTER 1 (b) If Jones yield is 12%, then Jones paid X = = = 1+ t j 1 + (.12) 60 ( ) In the previous example, we see that to achieve a yield rate of 15% Jones pays and to achieve a yield rate of 12% Jones pays This inverse relationship between yield and price is typical of a fixed-income investment. A fixed-income investment is one for which the future payments are predetermined (unlike an investment in, say, a stock, which involves some risk, and for which the return cannot be predetermined). Jones is investing in a 60-day investment which will pay him at the end of 60 days. If the interest (yield) rate desired by an investor increases for an investment with fixed future payments, the price that the investor (Jones) is willing to pay for the investment decreases (the less paid, the better the return on the investment). When Brown makes the loan to Smith, we can regard Brown as having made a fixed-income investment, since he is to receive a specified amount, , on specified date, April 30. An alternative way of describing the inverse relationship between yield and price on fixed-income investments is to say that the holder of a fixed income investment (Brown) will see the market value of the investment decrease if the yield rate to maturity demanded by a buyer (Jones) increases. This can be explained by noting that a higher yield rate requires a smaller investment amount to achieve the same dollar level of interest payments. This will be seen again when the notion of present value is discussed later in this chapter. From Equations 1.1 and 1.2 it is clear that accumulation under simple interest forms a linear function whereas compound interest accumulation forms an exponential function. This is illustrated in Figure 1.7 showing the graph of the accumulation of an initial investment of 1 at both simple and compound interest. From Figure 1.7 it appears that simple interest accumulation at annual rate i is larger than compound interest accumulation at effective annual rate i for values of t between 0 and 1, but compound interest accumulation is greater than simple interest accumulation for values of t greater than 1. Using an annual interest rate of i =.08, we have, for example, at time t =.25, 1+ it = 1 + (.08)(.25) = 1.02 > = (1.08) = (1 + i), and at t = 2.25 t

13 Rates and Fees Page 1 of 2 08/09/2008 9/8/2008 8:56:17 AM Returning customer? Click here GET THE CASH YOU NEED FAST! Get up to $1000! No faxing required! Deposited into your account! Cash until payday! FEES The Fee For Our Loans Is $30.00 Per $ Borrowed. The Annual Percentage Rate (A.P.R.) for our loans ranges from % to %, depending on the term of your loan. Please refer to the table below to find your A.P.R. Schedule of Fees Annual Percentage Rate (A.P.R.) Term Loan Amount (days) $ $ $ $ Fee A.P.R. Fee A.P.R. Fee A.P.R. Fee A.P.R. 7 $ % $ % $ % $ % 8 $ % $ % $ % $ % 9 $ % $ % $ % $ % 10 $ % $ % $ % $ % 11 $ % $ % $ % $ % 12 $ % $ % $ % $ % 13 $ % $ % $ % $ % 14 $ % $ % $ % $ % 15 $ % $ % $ % $ % 16 $ % $ % $ % $ % 17 $ % $ % $ % $ % 18 $ % $ % $ % $ % 19 $ % $ % $ % $ % 20 $ % $ % $ % $ % 21 $ % $ % $ % $ % 22 $ % $ % $ % $ % 23 $ % $ % $ % $ % 24 $ % $ % $ % $ % 25 $ % $ % $ % $ % 26 $ % $ % $ % $ % 27 $ % $ % $ % $ % 28 $ % $ % $ % $ % 29 $ % $ % $ % $ % 30 $ % $ % $ % $ % How to determine your Due Date

14 Rates and Fees Page 2 of 2 08/09/2008 EZPaydaycash.com provides short-term cash advances in which is due on your next pay date, unless your next payday is less than 7 days away. In this case, we will debit your account on the following pay date after. The maximum term for our loans is 30 days. If we do not hear from you prior to your loan due date, we will automatically debit the full loan balance from your account. If you you do not want us to withdraw the full amount, you have the option to extend your loan until your next payday. You are allowed up to two (2) extensions or rollovers with only minimum payment before we require you to paydown your principal. The cost to extend your loan is $30.00 per $ borrowed. TThe extension fee will be withdrawn from your account on your due date. We must receive your extension request before 8:00 PM EST the day before your loan is due. If you have any questions please contact us. ACH Authorization Your online agreement will be governed by the state of Utah. All the applicable laws and regulations of Utah will apply to your online agreement. If your ACH debit that you have authorized is returned for any reason you agree to the following items. You are authorizing us to initiate electronic debits to your account in the amounts up to or less than the amount owed until the amount owed is paid in full. Your authorization shall remain in effect until we have received written notice of its termination. We must also have had a reasonable opportunity to act on this authorization. You agree to pay a NSF (non-sufficient funds) fee of $ You agree to pay all fees related to the collection of your account. This includes, but is not limited to all attorney fees, collection fees, and court costs incurred during the collection process. If you have any questions please contact us. Back to Top Payday Loan Center FAQ Apply Now! Bad Credit Payday Loans Paycheck Loans Contact Us Sitemap No Credit Check Loans No Fax Payday Loan Loan Till Payday Overnight Cash Advance Payday Advance Paycheck Advance Payday Cash Loan Privacy Policy Terms & Conditions

15 1. Joe deposits 10 today and another 30 in five years into a fund paying simple interest of 11% per year. Tina will make the same two deposits, but the 10 will be deposited n years from today and the 30 will be deposited 2n years from today. Tina s deposits earn an annual effective rate of 9.15%. At the end of 10 years, the accumulated amount of Tina s deposits equals the accumulated amount of Joe s deposits. Calculate n. (A) 2.0 (B) 2.3 (C) 2.6 (D) 2.9 (E) 3.2 Course 2 2 May 2000