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Recall that Guaranteed Investment Certificates (GICs) are investments offering a guaranteed rate of interest over a predetermined time period. Though terms longer than this are available, they are not very common.

Also recall that Section 8.3 discussed the factors that determine interest rates for short-term GICs. The same factors apply to long-term GICs: To receive the highest interest rate on a GIC, you should still invest a large principal in a non-redeemable GIC for the longest term possible.

The key difference between short- and long-term GICs lies in the compounding of interest. Long-term GICs do not wait until the end of the term for interest on them to appear and be paid out. Rather, in line with the definition of compound interest, a long-term GIC periodically converts the accrued interest into principal throughout the transaction. Although GICs come in many varieties (remember, financial institutions try to market these products attractively to investors), three structures are commonly available:

**Interest Payout GICs**. An**interest payout GIC**uses interest rates that by all appearances you might assume to be compounded periodically since they are listed side-by-side with compound interest rates. In practice, though (and by reading the fine print), you will find that the periodically calculated interest is never added to the principal of the GIC, and in essence the concepts of simple interest are used. Instead, the interest is paid out to the investor (perhaps into a chequing account) and does not actually compound unless the investor takes the interest payment received and invests it in another compounding investment. Interest payout GIC interest rates can take either a fixed or variable format. For example, in an online browsing of long-term GICs you may find a posted rate on a three-year GIC at 2% semi-annually. The fine print and footnotes may show that the interest is paid out on a simple interest basis at the end of each six months.**Compound Interest GICs**. A**compound interest GIC**uses compound interest rates for which interest is periodically calculated and converted to the principal of the GIC for further compounding. Interest rates can be either fixed or variable.**Escalator Interest GICs**. An**escalator interest GIC**uses compound interest rates that usually remain constant during each of a series of time intervals, always rising stepwise throughout the term of the investment with any accrued interest being converted to principal.

When you invest in a GIC, you are in essence lending the bank your money in return for earning an interest rate. Financial institutions commonly use the money raised from GICs to fund mortgages. As a result, the posted interest rates on GICs hover at 1% to 2% lower than the interest rates on mortgages. Thus, the bank earns the interest from its mortgagors, paying only a portion of it to its GIC investors. The rest of this section discusses each of the three types of GICs separately.

## Interest Payout GIC

The interest payout GIC is mathematically the least interesting of the three types of GICs since the interest, while periodically calculated based on compound interest rates, does not get converted to principal. Instead, the interest payment is paid out to an account specified by the investor. Therefore, usually the only variable of concern on an interest payout GIC is the amount of the interest payment.

As a source of confusion, in the marketplace many financial institutions refer to interest payout GICs as simple interest GICs, because the interest never converts to principal. Examining bank websites such as CIBC (www.cibc.com/ca/gic/index.html), TD Canada Trust (www.tdcanadatrust.com/GICs/index.jsp), or HSBC (www.hsbc.ca/1/2/en/personal/investing-retiring/gics) reveals a variety of long-term GICs referred to as using simple interest. Why do these GICs then appear in this chapter and not previously in Chapter 8? The answer is threefold:

**Periodic Interest Payments**. In interest payout GICs, interest is periodically paid out throughout the term of the GIC. This differs from the GICs discussed in Chapter 8 in that simple interest required interest to be calculated and added to the principal only at the end of the transaction's time period.**Rates Used in Calculating the Interest Amount**. In interest payout GICs, the posted rates appear intermixed with the posted compound interest rates. For example, a rate of 2% semi-annually may be posted (the word compounded is usually omitted to reduce confusion with compound interest GICs), which means that 1% interest is paid out every six months.**Length of Time**. The terms involved with interest payout GICs are longer than one year, meeting the definition of "long-term" GICs.

### The Formula

Calculating the interest payment requires a simplification of Formula 9.3 involving compound interest for single payments. As with compound interest GICs, you use the periodic interest rate calculated through Formula 9.1. However, in an interest payout GIC you never add the interest to the principal, so you do not need the 1+ term in the formula. There is also no future value to calculate, just an interest amount. This changes Formula 9.3 from (FV = PV × (1 + i)N) to (I = PV × iN). Simplifying further, you calculate the interest one compound period at a time, where (N = 1). This eliminates the need for the (N) exponent and establishes Formula 10.1.

Formula 10.1

### How It Works

Follow these steps to calculate the interest payment for an interest payout GIC:

**Step 1**: Identify the amount of principal invested. This is the (PV). Also determine the nominal interest rate ((IY)) and interest payout frequency ((CY)).

**Step 2**: Using Formula 9.1, calculate the periodic interest rate ((i)).

**Step 3**: Apply Formula 10.1 to calculate the interest amount.

Assume $5,000 is invested for a term of three years at 5% quarterly in an interest payout GIC. Calculate the amount of the quarterly interest payment.

**Step 1**: The principal invested is $5,000, or (PV) = $5,000. The nominal interest rate is (IY) = 5%. The frequency is (CY) = 4 for quarterly.

**Step 2**: Applying Formula 9.1 results in (i) = 5%/4 = 1.25%.

**Step 3**: Applying Formula 10.1, I = $5,000 × 0.0125 = $62.50.

The investor receives an interest payment of $62.50 every quarter throughout the term of the investment. A term of three years then means that there are (N = 4 × 3 = 12) payments totaling $62.50 × 12 = $750 of interest. At the end of the three years, the GIC matures and the investor is paid out the principal of $5,000.

### Important Notes

If the interest rate is variable, you must apply Formula 10.1 to each of the variable interest rates in turn to calculate the interest payment amount in the corresponding time segment. For example, if a $1,000 GIC earns 2% quarterly for the first year and 2.4% monthly for the second year, then in the first year (I=$ 1,000 imes dfrac{2 \%}{4}=$ 5), and in the second year (I=$ 1,000 imes dfrac{2.4 \%}{12}=$ 2).

Exercise (PageIndex{1}): Give It Some Thought

In an interest payout GIC, is the maturity value of the investment higher than, lower than, or the same as the principal invested in the GIC?

- Answer
The maturity value and the principal are the same since the interest is never converted to principal

Example (PageIndex{1}): An Interest Payout GIC

Jackson placed $10,000 into a four-year interest payout GIC earning 5.5% semi-annual interest. Calculate the amount of each interest payment and the total interest earned throughout the term.

**Solution**

Calculate the periodic interest payment amount ((I)). Then calculate the total interest paid for the term based on (N).

**What You Already Know **

**Step 1**:

(PV) = $10,000, (IY) = 5.5%, (CY) = 2

**How You Will Get There **

**Step 2**:

Apply Formula 9.2.

**Step 3**:

Apply Formula 10.1.

**Step 4**:

To calculate the total interest, determine (N) using Formula 9.2 and multiply the payment by (N).

**Perform**

**Step 2**:

[i=dfrac{5.5 \%}{2}=2.75 \% onumber ]

**Step 3**:

[I = $10,000 × 0.0275 = $275 onumber ]

**Step 4**:

(N) = 2 × 4 = 8; total interest = $275 × 8 = $2,200

Every six months, Jackson receives an interest payment of $275. Over the course of four years, these interest payments total $2,200.

## Compound Interest GIC

Throughout the term of a compound interest GIC, interest is periodically converted to principal. A starting amount, called the principal, remains in the account for the entire term and compounds interest. Therefore, you treat a compound interest GIC exactly like a future value compound interest calculation on a single payment amount.

### How It Works

Compound interest GICs do not require any new formulas or techniques. Most commonly, the variables of concern are either the maturity value of the investment or the compound interest rate.

**Maturity Value**. If the compound interest rate is fixed, then you find the maturity value by applying Formula 9.3 once, where (FV = PV(1 + i)N). These 4 steps were introduced in section 9.2. If the compound interest rate is variable, then to find the maturity value you must apply Formula 9.3 once for each segment of the timeline. These 7 steps were also introduced in section 9.2. Note that in step 5, no principal adjustment needs to be made since only the interest rate variable changes.**Compound Interest Rate**. In the event that the unknown variable is the interest rate, recall the 6 steps were introduced in section 9.5.

Assume an investment of $5,000 is made into a three-year compound interest GIC earning 5% compounded quarterly. Solve for the maturity value.

**Step 1**: The timeline below illustrates this investment. This is a fixed rate compound interest GIC with a term of three years and (PV) = $5,000. The compounding frequency is (CY) = 4.

**Step 2**: The periodic interest rate is (i) = 5%/4 = 1.25%.

**Step 3**: The number of compound periods is (N) = 4 × 3 = 12.

**Step 4**: Applying Formula 9.3, (FV = $5,000(1 + 0.0125)^{12} = $5,803.77). Hence, at maturity the GIC contains $5,803.77, consisting of $5,000 of principal and $803.77 of compound interest.

Exercise (PageIndex{2}): Give It Some Thought

Supposing that each investment is held until maturity, which earns more interest, an interest payout GIC or a compound interest GIC?

- Answer
The compound interest GIC earns more interest since the interest is converted to principal and therefore earns even more interest. The interest payout GIC does not compound.

Example (PageIndex{2}): How Much Do You Have at Maturity?

Andrej invested $23,500 into a three-year variable compound interest GIC. The quarterly compounded interest rate was 3.8% for the first 15 months, 3.7% for the next 12 months, and 3.65% after that. What is the maturity value of Andrej’s GIC?

**Solution**

Calculate the maturity value ((FV)) of Andrej’s variable rate compound interest GIC.

**What You Already Know **

**Step 1**:

The principal, terms, and interest rates are known, as shown in the timeline.

(PV) = $23,500

First time segment: (IY) = 3.8%, (CY) = quarterly = 4 Term = 1¼ years

Second time segment: (IY) = 3.7%, (CY) = quarterly = 4 Term = 1 year

Third time segment: (IY) = 3.65%, (CY) = quarterly = 4 Term = ¾ year

**How You Will Get There **

**Step 2**:

For each time segment, calculate the periodic interest rate by applying Formula 9.2.

**Step 3**:

For each time segment, calculate the number of compound periods by applying Formula 9.2.

**Step 4**:

Calculate the future value ((FV_1)) of the first time segment using Formula 9.3.

**Step 5**:

Let (FV_1 = PV_2).

**Step 6**:

Calculate the future value ((FV_2)) of the second time segment using Formula 9.3. Repeat Step 5: Let (FV_2 = PV_3). Repeat Step 6: Calculate the future value ((FV_3)) of the third time segment using Formula 9.3.

**Step 7**:

(FV_3) is the final future value amount.

**Perform**

**Step 2**:

First Time Segment:

[i=dfrac{3.8 \%}{4}=0.95 \% onumber ]

Second Time Segment:

[i=dfrac{3.7 \%}{4}=0.925 \% onumber ]

Third Time Segment:

[i=frac{3.65 \%}{4}=0.9125 \% onumber ]

**Step 3**:

First Time Segment:

[N=4 imes 1 frac{1}{4}=5 onumber ]

Second Time Segment:

[N=4 imes 1=4 onumber ]

Third Time Segment:

[N=4 imes frac {3}{4}=3 onumber ]

**Step 4**:

[FV_1=$ 23,500 imes(1+0.0095)^{5}=$ 24,637.66119 onumber ]

**Step 5 - Step 6**:

[FV_2=$ 24,637.66119 imes(1+0.00925)^{4}=$ 25,561.98119 onumber ]

**Repeat Step 5 - Step 6**:

[FV_3=$ 25,561.98119 imes(1+0.009125)^{3}=$ 26,268.15 onumber ]

**Calculator Instructions**

Segment | N | I/Y | PV | PMT | FV | P/Y | C/Y |
---|---|---|---|---|---|---|---|

1 | 5 | 3.8 | -23500 | 0 | Answer: -24,637.66119 | 4 | 4 |

2 | 4 | 3.7 | 24,637.66119 | (surd) | Answer: -25,561.98119 | (surd) | (surd) |

3 | 3 | 3.65 | 25,561.98119 | (surd) | Answer: -26,268.14515 | (surd) | (surd) |

At the end of the three-year compound interest GIC, Andrej has $26,268.15, consisting of the $23,500 principal plus $2,768.15 in interest.

Example (PageIndex{3}): Equivalent Interest Rate on the GIC

Using Example (PageIndex{2}), what equivalent fixed quarterly compounded interest rate did Andrej earn on his GIC?

**Solution**

Calculate the fixed quarterly compounded interest rate ((IY)) that is equivalent to the three variable interest rates.

**What You Already Know**

**Step 1**:

From Example (PageIndex{2}), the principal, maturity value, compounding frequency, and term are known, as illustrated in the timeline. (CY) = 4, Term = 3 years

**How You Will Get There **

**Step 2**:

Calculate (N) using Formula 9.2.

**Step 3**:

Substitute into Formula 9.3 and rearrange for (i).

**Step 4**:

Substitute into Formula 9.1 and rearrange for (IY).

**Perform**

**Step 2**:

[N=4 imes 3=12 onumber ]

**Step 3**:

[egin{aligned} $ 26,268.15 &=$ 23,500(1+i)^{12} 1.117793 &=(1+i)^{12} 1.117793^{ frac{1}{12}} &=1+i 1.009322 &=1+i 0.009322 &=i end{aligned} onumber ]

**Step 4**:

[0.009322=dfrac{I Y}{4} onumber ]

[IY=0.037292=3.7292 \% ext { compounded quarterly } onumber ]

**Calculator Instructions**

N | I/Y | PV | PMT | FV | P/Y | C/Y |
---|---|---|---|---|---|---|

12 | Answer: 3.729168 | -23500 | 0 | 26268.15 | 4 | 4 |

A fixed rate of 3.7292% compounded quarterly is equivalent to the three variable interest rates that Andrej realized.

## Escalator Interest GIC

An escalator interest GIC is a compound interest rate GIC with four distinguishing characteristics:

- The interest rate is variable throughout the term.
- The nominal interest rate always increases with each change so that higher returns on longer terms will encourage the investor to keep the sum of money invested in this GIC.
- The interest rates are known in advance and fixed for the duration of each time segment of the investment.
- Each time segment is most commonly one year in length.

Various financial institutions call escalator interest GICs by many names to differentiate their products from others on the market. Some of the names include Rate Riser, Stepper, Multi-Rater, Stepmaker, and RateAdvantage. Regardless of the actual name used, if the GIC fits the above characteristics it is an escalator interest GIC.

### How It Works

The escalator interest GIC is a special form of the compound interest GIC, so the exact same formulas and procedures used for compound interest GICs remain applicable. The most common applications with escalator GICs involve finding one of the following:

- The maturity value of the GIC.
- The equivalent fixed rate of interest on the GIC so that the investor can either compare it to that of other options or just better understand the interest being earned. Recall from Chapter 9 the 6 steps you need to calculate equivalent fixed rates.

Example (PageIndex{4}): Understanding Your Escalator Rate GIC

Antoine is thinking of investing $8,000 into a five-year CIBC Escalating Rate GIC with annually compounded rates of 0.5%, 1.5%, 2%, 3.5%, and 6.5% in each subsequent year. Determine the maturity value of Antoine's investment along with the equivalent fixed annually compounded rate.

**Solution**

First, calculate the maturity value of Antoine's investment ((FV)) at the end of the five-year term. Then calculate the equivalent fixed nominal interest rate ((IY)).

**What You Already Know **

**Step 1**:

The present value, term, and escalating nominal interest rates are known, as shown in the timeline.

**How You Will Get There **

**Step 2**:

For each time segment, calculate the (i) and (N) in the timeline using Formula 9.1 and Formula 9.2. Note that since all rates are compounded annually ((CY) = 1), Formula 9.1 results in (i = IY) for all time segments. As well, in Formula 9.2 the (N) always equals 1 since both (CY) = 1 and Years = 1 for every time segment.

**Step 3**: Solve for (FV) using Formula 9.3. Since only the interest rate changes, expand the formula:

[FV=PV imesleft(1+i_{1} ight)^{N_{1}} imesleft(1+i_{2} ight)^{N_{2}} imes ldots imesleft(1+i_{5} ight)^{N_{5}} onumber ]

**Step 4**: To reflect the entire five-year term compounded annually, calculate a new value of (N) using Formula 9.2.

**Step 5**: Substitute into Formula 9.3 and rearrange for (i).

**Step 6**: With (CY) = 1, then (IY = i).

**Perform**

**Step 2**:

The above figure shows the successive calculated values of (i) and (N).

**Step 3**:

[FV_{1}=$ 8,000(1+0.005)^{1}(1+0.015)^{1}(1+0.02)^{1}(1+0.035)^{1}(1+0.065)^{1}=$ 9,175.13 onumber ]

**Step 4**:

[N = 1 × 5 = 5 onumber ]

**Step 5**:

[egin{aligned} $ 9,175.13&=$ 8,000(1+i)^{5} 1.146891&=(1+i)^{5} 1.146891^{frac{1}{5}}&=1+i 1.027790&=1+i 0.027790&=i end{aligned} onumber ]

**Step 6**:

[IY=i=0.027790 ext { or } 2.779 \% ext { compounded annually} onumber ]

**Calculator Instructions**

Segment | N | I/Y | PV | PMT | FV | P/Y | C/Y |
---|---|---|---|---|---|---|---|

1 | 1 | 0.5 | -8000 | 0 | Answer: 8,040 | 2 | 2 |

2 | (surd) | 1.5 | -8040 | (surd) | Answer: 8,160.60 | (surd) | (surd) |

3 | (surd) | 2 | -8,160.60 | (surd) | Answer:8,323.812 | (surd) | (surd) |

4 | (surd) | 3.5 | -8,323.812 | (surd) | Answer: 8,615.14542 | (surd) | (surd) |

5 | (surd) | 6.5 | -8,615.14542 | (surd) | Answer: 9,175.129872 | (surd) | (surd) |

All | 5 | Answer: 2.779014 | -8000 | (surd) | 9175.13 | (surd) | (surd) |

If Antoine invests in the CIBC Escalating Rate GIC, the maturity value after five years is $9,175.13. He realizes 2.779% compounded annually on his investment.

Glass-ionomer cement (GIC) materials have been in clinical use since their inception 40 years ago. They have undergone several permutations to yield different categories of these materials. Although all GICs share the same generic properties, subtle differences between commercial products may occur. They have a wide range of uses such as lining, bonding, sealing, luting or restoring a tooth. In general, GICs are useful for reasons of adhesion to tooth structure, fluoride release and being tooth-coloured although their sensitivity to moisture, inherent opacity, long-term wear and strength are not as adequate as desired. They are useful in situations where they are not disadvantaged by their comparatively lower physical properties, such as where there is adequate remaining tooth structure to support the material and where they are not subject to heavy occlusal loading. The last decade has seen the use of these materials being extended. However, they are likely to retain their specific niches of clinical application.

### Abbreviations and acronyms

## Segregated Funds

**For more information:**

- To order printed copies of the applications or information folders & contracts, please visit the online ordering page
- To submit segregated fund applications electronically, check out our Sun Life Investment GIF e-app
- For more information on completing paper applications, refer to the sales process tips and reminders
- Download the flattened version of the forms (non-fillable) to send, or to print out and complete manually

### Point of Sale/Applications

For Sun GIF Solutions & Sun Lifetime Advantage GIF

**Accessible version of applications**

**Information Folders & Contracts**

You must provide the information folder and contract to clients when they purchase a contract. Email these documents if the client has chosen to receive them electronically.

You must provide the fund facts to clients. Email these documents if the client has chosen to receive them electronically.

### New Contract Supplemental Forms

Some non-registered contracts require additional forms. Refer to the application for details:

### Transfers

When transferring money, complete the applicable transfer form:

### Locked-in addendums

### Federal and Provincial Pension Legislation

**Note:** These links launch a new website

### Financial forms

### Non-financial forms

### Spousal status declaration for deceased contract owner forms

Working at GIC allows you to play a unique role in growing Singapore's reserves. You will be prepared through targeted skill development and deep diving into real-life assignments, guided by experienced professionals. Through such structured programmes, we prepare our people to do their part in shaping the nation's future.

GIC is a pioneer in our industry. As first movers, we constantly seek to adopt new areas of investment, approaches and technologies, to deliver returns above inflation over the long-term. Working at GIC allows you to work towards this goal where you will have the chance to extend a legacy that began many years ago.

Our environment is a supportive and collaborative one. To drive growth for our organisation, sustain our performance and returns, you will be empowered to make decisions. We also encourage you to learn from both colleagues and partners, for better outcomes.

Because we manage the nation's long-term investments, we are responsible for Singapore's success. Every action we take has a direct impact on the future of both the nation and its people.

## Paying your premium

**How to pay the premiums for state retiree health and/or life insurance coverage after you retire**

Premiums will be deducted from your monthly pension. As it frequently takes several months to receive your first pension check, the GIC will bill you directly for the retiree share of premium (20%) until your GIC deductions begin. It’s important to pay this monthly bill by the due date to avoid termination of coverage. Municipal Retirees - contact your benefits office for details.

**What you should do if you do not receive a premium bill from the GIC after you retire (state retirees only)**

Although this happens infrequently, if you have not received a bill within 60 days of retirement, call the GIC, or submit to our online form to avoid losing your coverage. Always keep the GIC informed of your correct address so that you will receive bills and other important materials.

**What your optional life insurance will cost after you retire (state retirees only)**

Optional life insurance premium rates change, increasing when you retire from the state and as you age. You may only cancel, decrease, or maintain your current level of optional life coverage after you retire. Keep in mind that if you do not change your Optional Life Insurance election at retirement, you will be responsible for the retiree life insurance premium, which can be substantial. **Important Reminder: Life insurance policy is a term policy with no cash surrender value.**

Market Growth GICs held in Registered (RSP, TFSA, RIF, RESP) or Non-registered accounts have the same rate.

Market Growth GICs held in Registered (RSP, TFSA, RIF, RESP) or Non-registered accounts have the same rate.

1 Actual return is 0.0843% per annum, compounded annually, payable at maturity (equivalent to 0.25% total return)

2 Actual return is 0.2003% per annum, compounded annually, payable at maturity (equivalent to 1.00% total return)

3 Equivalent to the total return over the term of the investment (i.e. not an annualized rate)

4 Actual return is 0.6633% per annum, compounded annually, payable at maturity (equivalent to 2.00% total return)

5 Actual return is 0.7885% per annum, compounded annually, payable at maturity (equivalent to 4.00% total return)

6 Actual return is 0.0510% per annum, compounded annually, payable at maturity (equivalent to 0.15% total return)

7 Actual return is 0.2003% per annum, compounded annually, payable at maturity (equivalent to 1.00% total return)

## Robo-advisors

A robo-advisor can be a great option for investors who are comfortable with taking some financial risk for higher potential returns but also don’t know how (or want) to manage their own portfolio. A robo-advisor provides a completely hands-off investment experience, offering a range of pre-built portfolio options to choose from based on your risk tolerance, financial goals, and personal situation. With a robo-advisor, you won’t have to do any of the work or pay high fees, as portfolios are managed, rebalanced, and maintained in an automated fashion without active managers. You can browse our list of the best robo-advisors in Canada to find the right option for your financial needs.

## Find a GIC account that's right for you

The CIBC Flexible GIC is available in non-registered and registered accounts. If you have a savings goal in mind, such as retirement, consider putting your money in a registered account for the tax benefits.

### Non-registered

Non-registered accounts are a flexible way to grow and manage your savings.

#### Term and rate

Minimum investment of $1,000 1

Term | Rate 2 |
---|---|

1 year | RDS%rate[4].FLGIC.Published(365_-_375_Days_D,1000.0_-_4999.99_CAD_Balance,1,1)(#O2#)% |

#### What you need to know

Access your money at any time. Depending on how much you invest, there's a minimum withdrawal amount if you cash out early

- You're paid simple interest at maturity
- If you cash out in the first 29 days, you're not paid interest
- If you cash out after 29 days, you're paid full interest up to the day you withdraw your money

You can automatically renew your GIC when it matures or deposit your principal and interest into your bank account

### RRSP (Registered Retirement Savings Plan)

You pay no taxes while your money is in your RRSP, so you can maximize your retirement savings.

#### Term and rate

Minimum investment of $500 1

Term | Rate 3 |
---|---|

1 year | RDS%rate[4].FLEXI.Published(1_null_null_Year_T,null,1,1)(#O2#)% |

#### What you need to know

- Access your money at any time
- If you cash out early, you need to withdraw a minimum of $500
- If you withdraw some of your money, you need to keep at least $500 in your GIC. Otherwise, you have to cash out the full balance

- You're paid simple interest at maturity
- If you cash out in the first 29 days, you're not paid interest
- If you cash out after 29 days, you're paid full interest up to the day you withdraw your money

You'll pay a $100 fee if you transfer all or part of your RRSP funds to another financial institution

We automatically renew your GIC at maturity, unless you give us other instructions before the end of the term

### TFSA (Tax-Free Savings Account)

TFSAs can help you grow your savings faster because you pay no taxes on the money you earn, as long as you follow the contribution rules. The 2021 TFSA dollar limit is $6,000.

#### Term and rate

Minimum investment of $500 1

Term | Rate 3 |
---|---|

1 year | RDS%rate[4].FLEXITF.Published(1_null_null_Year_T,null,1,1)(#O2#)% |

#### What you need to know

- Access your money at any time
- You need to withdraw a minimum of $500 if you cash out early
- If you withdraw some of your money, you need to keep at least $500 in your GIC. Otherwise, you have to cash out the full balance

- You're paid simple interest at maturity
- If you cash out in the first 29 days, you're not paid interest
- If you cash out after 29 days, you're paid full interest up to the day you withdraw your money

You'll pay a $100 fee if you transfer all or part of your TFSA funds to another financial institution

We automatically renew your GIC at maturity, unless you give us other instructions before the end of the term

Interested in other GIC rates?

## Health Care Technology

The Health Care Technology Industry in the Health Care Sector includes companies providing information technology services primarily to health care providers. Includes companies providing application, systems and/or data processing software, internet-based tools, and IT consulting services to doctors, hospitals or businesses operating primarily in the Health Care Sector.

### View a Specific Sector or Industry:

U.S. Sectors & Industries Performance is represented by the S&P 500 GICS® (Global Industry Classification Standard) indices. Last % change is the nominal change in the price of the index from the previous trading day's close expressed as a percentage as of the index value at the time noted in the Date & Time field. All dates and times are reported in ET.

Chart Performance enables you to chart and change performance timeframe of daily percent change for the indices as well as the ability to add a user-entered symbol. Chart Performance figures may vary slightly from 1 Year % Change due to different timeframes used in chart calculations.

GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). S&P uses GICS to determine the market segment to which a company is assigned. A company is assigned to a single GICS industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI. Revenues are a significant factor in defining principal business activity however, earnings analysis and market perception are also important criteria for classification. There are currently 10 sectors and 68 industries. Three of the 68 industries do not have companies represented in the S&P 500 Index therefore, performance is not available for Marine, Transportation and Infrastructure, and Water Utilities.

Standard & Poor's 500 (S&P 500) Index is an unmanaged market-weighted index of 500 of the nation's largest stocks from a broad variety of industries. The S&P 500 represents about 80% of the total market value of all stocks on the New York Stock Exchange. Market-weighted means that component stocks are weighted according to the total value of their outstanding shares.

Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

Chart Performance enables you to chart and change performance timeframe of daily percent change for the indices as well as the ability to add a user-entered symbol.

Market Cap is the sum of the market value of each company assigned to the applicable GICS sector or industry. Market value or capitalization is calculated by multiplying the number of common shares outstanding by the market price per share at the end of each trading day.

Market Weight is updated weekly from CFRA and represents the sum of the market cap of the companies in the applicable S&P 500 GIC sector index as a percentage of the total S&P 500 Index market capitalization.

Fundamental data is the cap weighted average (or industry standard method) of the most current value available at the end of each trading day for each company assigned to the applicable GICS sector or industry.

## Overview of Distributed Transactions

A distributed database is a set of databases in a distributed system that can appear to applications as a single data source. A distributed transaction is a transaction that includes one or more statements that update data on two or more distinct nodes of a distributed database, using a schema object called a database link . A database link describes how one database instance can log in to another database instance.

Unlike a transaction on a local database, a distributed transaction alters data on multiple databases. Consequently, distributed transaction processing is more complicated because the database must coordinate the committing or rolling back of the changes in a transaction as an atomic unit. The entire transaction must commit or roll back. Oracle Database must coordinate transaction control over a network and maintain data consistency, even if a network or system failure occurs.

### Two-Phase Commit

The two-phase commit mechanism guarantees that all databases participating in a distributed transaction either all commit or all undo the statements in the transaction. The mechanism also protects implicit DML performed by integrity constraints, remote procedure calls, and triggers.

In a two-phase commit among multiple databases, one database coordinates the distributed transaction. The initiating node is called the global coordinator . The coordinator asks the other databases if they are prepared to commit. If any database responds with a no, then the entire transaction is rolled back. If all databases vote yes, then the coordinator broadcasts a message to make the commit permanent on each of the databases.

The two-phase commit mechanism is transparent to users who issue distributed transactions. In fact, users need not even know the transaction is distributed. A COMMIT statement denoting the end of a transaction automatically triggers the two-phase commit mechanism. No coding or complex statement syntax is required to include distributed transactions within the body of a database application.

Oracle Database Administrator's Guide to learn about the two-phase commit mechanism

### In-Doubt Transactions

An in-doubt distributed transaction occurs when a two-phase commit was interrupted by any type of system or network failure.

For example, two databases report to the coordinating database that they were prepared to commit, but the coordinating database instance fails immediately after receiving the messages. The two databases who are prepared to commit are now left hanging while they await notification of the outcome.

The recoverer ( RECO ) background process automatically resolves the outcome of in-doubt distributed transactions. After the failure is repaired and communication is reestablished, the RECO process of each local Oracle database automatically commits or rolls back any in-doubt distributed transactions consistently on all involved nodes.

In the event of a long-term failure, Oracle Database enables each local administrator to manually commit or undo any distributed transactions that are in doubt because of the failure. This option enables the local database administrator to free any locked resources that are held indefinitely because of the long-term failure.

If a database must be recovered to a past time, then database recovery facilities enable database administrators at other sites to return their databases to the earlier point in time. This operation ensures that the global database remains consistent.

Oracle Database Administrator&rsquos Guide to learn how to manage in-doubt transactions

For Oracle Real Application Clusters (Oracle RAC), the logical transaction ID includes the database instance number as a prefix.

This validation is hardware-assisted in the database for platforms using current Intel and Sparc chips.

Validation is hardware-assisted when using current Intel and Sparc chips.