Index-linked term deposit (ILTD)
Growth that protects your principal.
Term length
3 or 5 years
Risk
Low risk. Principal is protected. Cannot be redeemed before maturity date
Options for
Non-registered accounts, TFSA, RRSP, and RRIF¹
Great if
You want growth potential beyond a traditional GIC or term deposit, while keeping your principal protected. You won’t need access to your money before maturity and understand that returns aren’t guaranteed beyond any applicable minimum return.
Features.
Account options
You can open a term deposit with a non-registered account or in a registered plan, like a TFSA, RRSP, or RRIF.
Get started
Earn market-based returns
Benefit from potential market growth while your principal is protected. Non-redeemable before the maturity date.
Limited time investment period
You can only invest in index-linked term deposits (ILTD) at special times of the year. The current sales period runs from July 21 to September 21, 2026.
Two ways to grow.
Whether you’re passionate about environmental impact or Canadian innovation, there’s an option for you.
Planet-Wise™ ILTD
Planet-Wise index-linked term deposits invests in companies that make a difference through three ethical pillars (ESG), and excludes sectors that don’t meet our standards for sustainable products and services, like oil and gas. Benefit from returns linked to stock performance while rooting your investments in your values.
Canadian ILTD
Canadian index-linked term deposits give members exposure to the performance of a basket of 15 Canadian companies. It combines the security of a term deposit with the opportunity to benefit from the performance of leading Canadian businesses.
Your index-linked 3-year options.
| Planet-Wise™ ILTD 3-year non-redeemable¹ | Canadian ILTD 3-year non-redeemable¹ | |
|---|---|---|
| Guaranteed minimum rate | 0.00% | 3.00% (0.99% annual compound) |
| Maximum cap rate | 21.00% (6.56% annual compound) | 21.00% (6.56% annual compound) |
Your index-linked 5-year options.
| Planet-Wise™ ILTD 5-year non-redeemable¹ | Canadian ILTD 5-year non-redeemable¹ | |
|---|---|---|
| Guaranteed minimum rate | 0.00% | 5.00% (0.98% annual compound) |
| Maximum cap rate | 43.00% (7.42% annual compound) | 40.00% (6.96% annual compound) |
Account options.
| Planet-Wise™ ILTD | Canadian ILTD | |
|---|---|---|
| Available with | Non-registered, TFSA, RRSP, RRIF | Non-registered, TFSA |
The rise and fall of the market.
The market is like a box of chocolates: you never know what you’re going to get. Unlike directly investing in the market, with an index-linked term deposit, you get more certainty. You can benefit from growth when the market climbs, and your principal is protected if it declines.
The trade-off for having your principal protected is that there is a limit on how much market upside you can receive. Unlike owning the stocks directly, an ILTD provides downside protection, but in exchange there is a maximum return. If the market performs better than your maximum return, you don’t get the benefit of those gains.
Calculating your return.
Your return is linked to the performance of a basket of companies and will be determined at maturity. While your principal is protected, the amount of interest you earn beyond any applicable minimum guaranteed return will depend on how the market performs over the term.
Things to keep in mind:
- Principal protection: Your original investment is protected and will be returned at maturity.
- Minimum guaranteed return: Canadian ILTDs include a minimum guaranteed return that you’ll receive even if market performance is lower. Planet-Wise does not have a minimum guaranteed return.
- Potential for higher returns: If the basket of companies performs well, you may earn more than the minimum guaranteed return, up to the maximum return for your ILTD.
- Returns aren’t known in advance: The final return depends on market performance and won’t be known until maturity.
Key dates and what they mean.
Before the issue date
Your money can start earning interest right away. From the day you deposit until the issue date, your money earns interest equal to a 30-day cashable as it waits for the sales period to end.
On the issue date
Once the issue date arrives, your ILTD funds are locked in for the full term, either 3 or 5 years. Your return will then depend on how the holdings within the fund perform.
Maturity date
At the end of the term, your principal is returned and you are paid the earnings. Instead of simply taking the market value on the last day, earnings are based on the average closing index at 7 days, 30 days, and 60 days prior to maturity. Using this average gives you a more stable return rather than being affected by a single day’s performance.
Questions? We have answers.
Still have questions
New to Vancity or still have questions? Let’s chat.
Explore other deposits.
This Index-Linked term deposit may not be negotiated, transferred or redeemed until the end of either the 3-year or 5-year maturity date. Additionally, for RRIF products, funds may not be withdrawn to satisfy any minimum RRIF withdrawals. Index-Linked term deposit within a RRIF account will not be redeemable until the maturity date.
The interest paid at maturity is subject to a minimum guaranteed return (Canadian only, excludes Planet-Wise) and a maximum cap rate (both Canadian and Planet-Wise). If the calculated return of the list of companies is higher than the maximum interest amount at maturity, then the interest paid will be the maximum amount disclosed in the investment agreement. If the calculated return of the list of companies is lower than the minimum guaranteed return at maturity (Canadian only, excludes Planet-Wise), then the interest paid will be the minimum amount disclosed in the investment agreement. This applies for both Planet-Wise 3-year and 5-year term deposit.
Your principal and minimum guaranteed rate are protected by the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC). Variable, index-linked returns are not protected.
Vancity is a BC Financial Services Authority authorized credit union and is covered by the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC). To find out more about this coverage, visit the CUDIC website or ask us for more details.