Feb. 3, 2011 (Canada NewsWire Group) --
MONTREAL, Feb. 3 /CNW Telbec/ - To help investors in their retirement and project planning, Laurentian Bank offers a number of products responding to a wide range of needs. Based on the individual's profile, risk tolerance and age, certain products will prove more advantageous than others, and Laurentian Bank therefore has products to suit the needs of every type of investor.
Key products offered by Laurentian Bank
Five-Year Xtra Multi-Rater GIC1
This product, which not only guarantees the capital invested but also the return, is being offered until March 31, 2011, with a total enhanced interest rate of 1.25%2, i.e. 0.75% bonus interest over the posted rate in the first year and 0.50% bonus interest over the posted rate in the second year, on a five year term. This offer, which applies to new contributions and transfers from another financial institution, improves the investor's compound rate, resulting in a substantially greater return.
Eligible in an RRSP or RRIF, the Five-Year Xtra Multi-Rater GIC allows investors to gain an added degree of flexibility in their investment portfolio by extending the possibility of reinvesting in full on each contribution anniversary date (1st, 2nd, 3rd or 4th year). Thus, the customer enjoys a greater ability to react when interest rates rise. As is the case for all guaranteed investment certificates, the capital invested in this particular vehicle is protected, and the investor can benefit from a higher return from one year to the next.
Blue Chip ActionGIC3
For investors seeking high return potential and who wish to hold shares in some of Canada's top companies, the Blue Chip ActionGIC is recommended. This indexed GIC is comprised of shares of leading, well-established Canadian companies designated as blue chip by the financial markets. In other words, they are recognized nation-wide for their financial stability.
Available with a five-year term, this GIC offers a return potential superior to that of conventional GICs and enables the investor to benefit from the growth of 17 of Canada's best publicly-listed companies while guaranteeing the capital invested.
These companies, which are vital to the Canadian economy and comprise
the stock portfolio of the Blue Chip ActionGIC, are as follows:
Royal Bank of Canada
Toronto-Dominion Bank (TD)
Canadian National Railway (CN)
Intact Financial Corporation
Suncor Energy Inc.
Guaranteed Investment Certificate (GIC) 26 months4
Designed for investors who wish to guarantee their capital, the 26-month GID, as its name indicates, is offered for a very short term, i.e. two years and two months. Available as both a registered and non-registered investment, this product is helpful whether investors are saving for retirement or for a particular project. This investment is currently offered at a highly competitive rate of 2.30%5.
Laurentian Bank reminds its clients that the deadline for making an RESP contribution for the 2010 tax year is Tuesday, March 1, 2011, at 11:59 p.m.
Tax-Free Savings Account (TFSA)
The Laurentian Bank TFSA is the most comprehensive on the market, as it can hold any of the following investments: cash account with tiered interest rates, GIC, fixed term deposits, ActionGIC, bonds, coupons, and mutual funds.
The TFSA cash account is currently offered with a promotional interest rate of 2.00%6 for all tiers. This product is designed for investors who are seeking to benefit from a competitive interest rate in order to grow their tax-free savings, either while building these savings up to the minimum amount needed for a specific investment or because they wish to retain a certain amount of cash in their investment portfolio.
About Laurentian Bank
Laurentian Bank of Canada is a banking institution operating across Canada and offering its clients diversified financial services. Distinguishing itself through excellence in service, as well as through its simplicity and proximity, the Bank serves individual consumers and small and medium-sized businesses. The Bank also offers its products to a wide network of independent financial intermediaries through B2B Trust, as well as full-service brokerage solutions through Laurentian Bank Securities.
Laurentian Bank is well established in the Province of Quebec, where it operates the third-largest retail branch network. Elsewhere throughout Canada, it operates in specific market segments, where it holds an enviable position. Laurentian Bank of Canada has more than $23 billion in balance sheet assets and more than $15 billion in assets under administration. Founded in 1846, the Bank employs more than 3,600 people.
1 Compound interest on an annual basis paid at maturity. Option to reinvest the full amount in a GIC with a term equal to or greater than the term balance at each anniversary date or within the subsequent 10 days. When reinvesting before the end of the term, interest is calculated based on the rate in force for each year. The Xtra Multi-Rater GIC is insured with the CDIC. Some conditions apply.
2 Offer is subject to change at any time and without notice. The bonus interest will be spread over a period of two (2) years: 0.75% bonus interest on the posted rate of the first year will be paid out the first year and 0.50% bonus interest on the posted rate of the second year will be paid out the second year. A client becomes eligible for the bonus interest when contributing to an RRSP before March 31, 2011, or transferring an RRSP from another financial institution before March 31, 2011. Investment renewals and other GICs are not eligible under this promotion. The rates of the 5-year Xtra Multi-Rater GIC are subject to change at any time without notice. The minimum investment of the Xtra Multi-Rater GIC is $500. When transferring an RRSP from another financial institution, the base rate applicable to the Xtra Multi-Rater GIC shall be the posted rate upon receiving the funds. Offer runs from December 16, 2010, to March 31, 2011 inclusively. Some conditions apply.
3 Rates can be modified at any time and without prior notice. The investments are not redeemable before their maturity dates. Some conditions apply. The ultimate rate of return of a Laurentian Bank Blue Chip ActionGIC is calculated based on the performance of the benchmark index between the issue date and the benchmark index average value on the three dates specified on the purchase agreement. Because the rate of return will depend on the performance of the benchmark index comprised of securities, any variation in the benchmark index will have a direct influence on the interest payable. Past performance is not an indication of future performance. If the ultimate return is negative or nil, the principal is fully guaranteed and returned at maturity, and no interest shall be paid out. If the total return obtained is positive, the principal and interest shall be paid upon investment maturity, up to the maximum predetermined rate of return. Because the return of this product is tied to the performance of a reference index, it's impossible to predict future return. Details on this investment product are available at Laurentian Bank branches.
4 Registered or non-registered. Non-redeemable. Some conditions apply.
5 Compound interest or annual basis. This rate can be modified at any time and without prior notice by Laurentian Bank.
6 Some conditions apply. Interest is calculated on the daily minimum balance and is paid monthly. This rate can be modified at any time and without prior notice by Laurentian Bank.
Public Relations Advisor
514 284-4500, extension 4695