Nov. 27, 2019
General

Savvy Term Deposit Account

Best of Both worlds

Who doesn’t love having the best of both worlds? With any investment, you want balance. You want to make more money and you want to minimize the risk.

Fusion’s Savvy Term Deposit allows investors to take advantage of potential gains in the stock market with no downside risk to their principal. It combines the principal protection of a term deposit with the potential for growth that you would get in a mutual fund.

Say you invest $5,000 over 3 years in the new Savvy Term Deposit. At the end of three years, you earn interest based on the performance of the S&P/TSX 60 Index, a Canadian index of the performance of the US S&P and the TSX. If it does well, you will do better than a regular term deposit. If it does poorly, you will not earn any interest. But your principal is protected, so you will not lose a cent of your $5,000.

This type of investment is great for conservative investors who want to minimize risk, and protect their principal while enjoying the potential for high-performance returns. It’s also ideal for individuals who want to diversify their investment portfolio and gain low-risk exposure to the stock market.

Our Savvy Term Deposit is great for members who want to try investing in the stock market while still protecting their original investment.

Leanne DeVliegere, Chief Operations Officer of Fusion, is excited to be welcoming this new option for Fusion members. “Our Savvy Term Deposit is great for members who want to try investing in the stock market while still protecting their original investment.”

Fusion’s Savvy Term Deposit is also known as an Index-Linked Term Deposit. It’s a term deposit where the return does not come in the form of regular interest, but rather from the performance of an index.

“Two terms are typically offered: three years and five years. Throughout the term, the deposit is non-redeemable and is principal protected,” explains DeVliegere. It offers Term Deposit security with the potential of stock market returns.

The deposit pays a return based on the performance of the S&P/TSX 60 Index over the appropriate term, and the return is based on a predetermined participation rate.

“While returns may not always make you wealthy, you won’t lose money no matter how poorly the stock market performs,” says DeVliegere. “Since terms can range, the Savvy Deposit can be considered a short-term investment opportunity.”

Benefits for Fusion Members

  • The Savvy Term Deposit is ideal for members who want to invest in the stock market, but do not want to risk their principal.
  • Members can take advantage of stock market gains without commissions or management fees.
  • These investments are RRSP and TFSA eligible.
  • Returns on deposits are based on the performance of the S&P/TSX 60 Index rather than the performance of an individual portfolio manager.
  • Low Minimum Investment: Invest as little as $1,000.
  • As with all Fusion deposits in Manitoba, Savvy Term Deposits are 100% insured.

Now, our members have one more investment option to suit their needs.

“This new Savvy Term Deposit demonstrates that Fusion puts its members first,” says DeVliegere. “Now, our members have one more investment option to suit their needs.”