Rates effective as of: November 16, 2020. The nominal return is simply the face value interest rate you receive. Withdrawals can be paid by cheque or EFT. 6 - 25 years are available for RRIF registration. $1,000 for guaranteed investments (compound and annual interest), $5,000 for annual and monthly interest payout guaranteed investments, Pre-authorized chequing (PAC) available into daily interest - $50 monthly (not available on LIRA or locked-in RRSP), Payment minimum - If the full amount of the legislated minimum has not been met, the balance will be paid out December 31 each year, Non-registered: age 16 (in Quebec, age 18), Short term investments are available (< 1 yr). For our large case rates (minimum deposit of $100,000), please call 1-800-800-4SUN/4786 option 1, 2, 3 or email Large Case Guaranteed Investments@sunlife.com. Investment instructions are required if a subsequent investment or withdrawal is required. If a certain term is selected, the investment will mature at the end of the selected number of years/months. Short term (30 to 364 days) and long term (1 to 5 years) guaranteed interest investments. Interest is calculated from the date the guaranteed interest investment is established. 1,200,000 Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada and Sun Life Financial Trust Inc. Sun Life Financial Trust Inc. is the issuer of Sun GIC Max … Up to 30 days before your GIC matures, you can ask for a rate guarantee. For JTIC, the account becomes the property of the Estate of the deceased and the surviving owner. Alternatively an annual interest payout investment can be selected where the annual interest (including the final year) will be paid out to the client each year. Annual interest - not available for RRIF, Example 1: No carry-forward of unused RRSP contribution room, Example 2: Carry forward of unused RRSP contribution room, Auto ladder (Superflex/Income Master only). Interest is quoted on an effective annual basis. (Look at the “5-year GIC return” column + the “consumer price index” column.). When you do, we’ll give you the better of the rate that day or the rate on your renewal date. The unused deduction room at the end of 2015. Withholding tax rates around the world Max. This document provides information about contributions to Registered Retirement Savings Plans (RRSPs). You can ask Sun Life to start the annuity payments at any time. all PAs for the previous year, the net PSPA and RRSP contributions deducted in the year. Tomorrow, we’ll explain why GIC rates … The taxpayer must ensure that their total tax-assisted saving does not exceed the overall allowable limits. RRSP, TFSA, non-registered. This means that they become the planholder and may exercise all of the planholder rights including the right to designate a beneficiary. If a successor annuitant is named and is alive upon the death of the annuitant, the contract will continue after the death of the annuitant and no death benefit will be payable. The contract is available with compound interest, monthly interest or annual interest. The contribution to a TFSA must come from either owner. While GICs aren’t a very exciting investment, they’re a key part … Read More, Imagine the following: When the Canadian dollar was at US$0.85 in early 2015, you invested C$25,000 in a 1-year U.S. dollar GIC paying 0.50% interest. Joint ownership is only permitted on non-registered policies. In a province where the legal age to enter a contract is 19? Competitor guaranteed rates; Sun Guaranteed Investments. For our large case rates (minimum deposit of $100,000), please call 1-800-800-4SUN/4786 option 1, 2, 3 or email Large Case Guaranteed Investments@sunlife.com. Interest is calculated and added to the value of each guaranteed interest investment daily. The interest rate is guaranteed for a specific term. The formula for interpolation is RATE = R1 + (#days/365) x (R2-R1) where: There are 3 types of investment options available to your clients: Note: Rate enhancement levels do not apply to daily interest. Sun Life Financial Trust 1 Year GIC Rate indicated is based on the Sun GIC Max - Short Term Rates product, and is a non-redeemable rate. One of the taxable benefits of a jointly-owned policy, either AA or GIC product, is that the tax burden can be shared by the owners. Each applicant must sign the application. (unless alternate directions are received for maturity action). Sun GIC Max for short term investment (i.e. with fund commitment - date of commitment, without fund commitment - date funds and/or forms are received at head office. For a jointly-held contract with tenants in common, the GIC will become the property of the surviving owner and the estate of the deceased owner. guaranteed interest investments (minimum investment $1,000). Now let’s see how GIC rates have fared historically. If you want a great GIC rate… The formula to calculate the unused RRSP contribution room is calculated at the end of a year as: While a taxpayer's unused RRSP contribution room will normally be positive or zero, it can also be negative meaning they may have over-contributed. This is referred to as the RRSP contribution room. The investment is split equally between each of the 1 to 5 year guaranteed interest investment terms. It is used for three purposes: To determine the amount of the unused RRSP contribution room, Pension Adjustment (PA) and Past Service Pension Adjustment (PSPA) have to be taken into consideration. Instructions will also be required to transfer the money from the existing GIC to the new GIC. The Best GIC Rates in Canada. For an individually held contract, the value (as above) will be paid to the owner's estate. 2. Be sure to use, Registered Retirement Savings Plan (RRSP), (navigate into the submenu with the down arrow key, activate a link with the enter key or space bar, close the submenu with the escape key), Canada Deposit Insurance Corporation (CDIC), Subsequent cheque deposit - Investment instructions, Transfer registered assets from another company to a registered product (E63), Sample savings and retirement annual statement, Sun Life Financial Trust Inc. at a glance, RC-240 - Designation of an exempt contribution - Tax-Free Saving Account (TFSA), First sixty-day receipt information for Superflex and GIC products, General tax information for guaranteed savings TFSA, Marriage breakdown and removal of spousal designation, Tax-Free Savings Account (TFSA) - Taxation upon death, Tax-Free Savings Account (TFSA) held by non-residents, Tax slip and receipt mailing schedule for all Individual products, Withholding tax on withdrawals from an RRSP, Application for Sun GIC Max or Guaranteed Investment Certificate: RSP/RIF or non-registered (810-3547), Application for Sun GIC Max or Guaranteed Investment Certificate (GIC): Tax-Free Savings Account (810-3548), Application for Sun GIC Max or Guaranteed Investment Certificate: RSP/RIF or non-registered, Application for Sun GIC Max or Guaranteed Investment Certificate (GIC): Tax-Free Savings Account, The unused contribution at the end of 2014, + The lesser of RRSP limit and 18% of previous year (2014) earned income, The unused contribution room at the end of 2015, + The lesser of RRSP limit and 18% of earned income, The unused contribution room at the end of 2014, + the lesser of RRSP limit and 18% of earned income. A good place to start Consider using the SLF Trust Sun GIC Max … 30 days - 270 days). TFSA regulations stipulate that only the spouse of an owner can become the successor owner (the survivor) of the TFSA policy. The executor of the estate would provide written direction as to who ownership of the deceased's share should pass to under the will. Get the best rate at renewal. Insurance GIC* - Superflex and Income Master rates For our large case rates (minimum deposit of $25,000), please call 1 800 800-4SUN/4786 option 1, 2, 3. Laws that apply are the Trust and Loan Companies Act and the Civil Code of Quebec. 0.250 %. 1 Sun Life’s 2012 Canadian Unretirement Index; 75% of respondents age 57+ indicated they want guaranteed income in retirement.. 2 Principal protection may be provided by Assuris up to … If the spouse is not the sole beneficiary, the value of the plan on the date of death is paid to the beneficiary(ies) in a lump sum. So let’s say you’re earning 1% on a GIC and the consumer price index (a measure of inflation) falls by 2% in a year. Once $1,000 has accumulated in the daily interest investment, a client may choose to transfer the money into a guaranteed interest investment. A contingent owner should be named for each owner. CRA states that if Mr. & Mrs. Smith each put in 50% of the principal, then each owner should claim 50%. Interest: The rates … The interest rate is guaranteed for each specific term. Superflex (Insurance GIC) 0.75: 0.75: 0.75: 0.90: 1.05-----Sun GIC Max (Trust GIC)-----0.70: 0.60: 0.50: 0.50: 0.50: Equitable Life: 0.25: 0.60: 0.65: 0.65: 0.75-----Canada Life: 0.15: 0.25: 0.35: 0.45: … 19 months, 3 years, etc.). By contrast, the real return takes into account the effect of changes in a broad basket of consumer prices. Despite low interest rates, the amount of Canadian GIC assets has stayed remarkably stable over the past decade at approximately $450 billion. There are definitely reasons to buy GICs: they provide security of capital and also generate some income. A 5-year GIC paid 11.3%, and inflation was only running at 4.6%; that’s a real return of 6.7% (11.3% – 4.6%). If the annuitant dies and no successor annuitant has been named: If the annuitant dies and a successor annuitant has been named: If the joint owner dies (and that joint owner is not the annuitant of the policy): Jointly-owned Sun GIC Max or Guaranteed Investment Certificates (GICs). choose any length of investment as follows: RRIF registrations - between 1 and 25 years, Superflex annuity - between 1 and 10 years, #days = number of days into the non-even year. If a contingent owner who was not one of the joint owners had been named, the deceased joint owner's share of the policy would pass automatically to the contingent owner, resulting in the policy being 50% owned by the surviving joint owner and 50% owned by the former contingent owner. Upon the death of the owner, the value (as above) will be paid to the named beneficiary or the owner's estate if no beneficiary designation has been made. The tax slip is issued to both owners, and it is between the clients and CRA, who claims the interest. If the client chooses to withdraw the interest on an annual basis, there are 2 payment options; cheque or EFT. All in all, the GIC returns of the past, both in nominal and real terms, were much better than they are today. Superflex accumulation annuity (Insurance GIC*): All interest types are available and can all be selected within the same product, unlike the GIC products described below. The best high-interest savings accounts in Canada for 2021, The best TFSA savings accounts in Canada for 2021, Canada’s 8 best cash back credit cards for 2021, The 15 best credit cards in Canada for 2021, Life insurance not paying out? all compound or all annual interest). In order to ensure that the spouse has the option of becoming the owner they must be the only beneficiary named on the policy. The average nominal returns over the past 10 years have been between 1.40-2.28%. 0.350 %. It wasn’t always the case, though. The personal representative of the deceased owner must provide proof of death. Pre-authorized chequing (PAC) (not available on GIC products). Any interest earned on the funds after the date of death would be taxable to the surviving spouse in this case. Similarly, if you’re receiving 1% annually on an investment, but inflation is running at 2% per year, the net result is that the purchasing power of your money is actually declining by 1% a year. This, in turn, helps you attract more clients and retain the ones you have. 1. The 2015 RRSP dollar limit was $24,930 and the 2016 RRSP dollar limit was $25,370.00. 1 and 5 years for GIC products (short term investments, less than 1 year, are also available on GIC products), 1 and 10 years for Superflex accumulation annuity, 1 and 25 years for all products with RIF registration, a certain term or (e.g. Before buying a GIC through a deposit broker, though, make sure they are a member of the Regist… All rights reserved. Proof of claim and the right to receive the benefit must be provided. Any interest credit prior to the death is taxed to the deceased and the surviving owner. Clients may want to check with the relinquishing institution to confirm whether or not a fee will apply. However, for smaller companies, the rates were really low and they may see rates … In the case of consumer price deflation (which admittedly is rare), note that you are subtracting a negative number, which actually adds to your real return. 0.250 %. For the GIC products, interest from a guaranteed investment rolls to the daily interest investment automatically on each monthly anniversary date of the individual investment. Money can be deposited or withdrawn at any time. If a withdrawal is completed, the contribution space will only return in the following calendar year and any deposit in the current year will count as a new deposit. Sun GIC Max, our non-redeemable GIC requires your investment to stay invested until the maturity date, but offers a higher interest rate than our redeemable option. This transfer will not affect their contribution room as long as they elect this option before the end of the year following the year of death. And Where Are They Headed? For monthly or annual interest plans, interest can remain within the plan, be moved to another Sun Life Financial plan or paid by electronic funds transfer (EFT). pays the accumulated value, as of the date of death. legal | privacy | security | terms & conditions. There are no up-front or annual fees - all the money earns interest immediately. © Sun Life Assurance Company of Canada. Unless you tell Sun Life He did not make contribution in 2015 therefore he can carry forward unused RRSP contribution room. If the client chooses to withdraw the interest on a monthly basis, electronic funds transfer (EFT) will be used to transfer the amount to the client's bank account. Account term. What is an insurance GIC? The client can request an earlier date. Any interest earned after the date of death will be taxable to the beneficiary. Client-selected end dates (CSED), available on all Sun Life guaranteed interest products available for sale, allow clients to select the end dates on their guaranteed interest investments. Short-term Sun GIC Max investments are only available with compound interest and are not available for RRIF. Important points to remember on jointly-owned Superflex: Jointly-owned Superflex accumulation annuities. (The owners may wish to appoint new contingent owners at this time.). For GIC Re, these eight occupancies are part of the property insurance segment, which accounts for only 8 per cent of its portfolio. Maximize household deposits - spouses can give each other money to contribute to each other’s TFSA without affecting their contribution room. The unused contribution room at the end of 2016 is as follows: Assume a taxpayer has earned income of $150,000. The client can have several guaranteed interest investments all within the same plan. The impact of a night of poor sleep is significant – your concentration goes out the window and your temper can … Read More, TFSA Contributions, Withdrawals, Transfers. 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