Escalator Term Deposits






If you are looking for a long term investment product that raises your earning power each and every year, the Escalator Term Deposit might be a great fit for you. This term deposit product also comes with the same great features as regular term deposits such as a guaranteed return, zero volatility and the peace of mind of a guaranteed principal investment. VPCU currently offers the Escalator term deposit as a five year non-registered, non-redeemable investment.
 
Product Facts
 
100% of the deposits are insured by the Credit Union Deposit Insurance Corporation. For more details, please click HERE.
 
What you see is what you get. Interest rates are guaranteed. Our current Escalator Term Deposit interest rates can be viewed HERE. 
 
Please note relationship pricing is not available for this product as it is already promotionally priced.
 
 
Product Q&A
 
Q – Is the Escalator Term Deposit the right product for me if I am currently saving up for the down payment on a new home purchase?

You may want to consider a term deposit with a shorter term length and with a redeemable feature. Locking in for too long a time does not provide you with the flexibility that you may require. In view of this, the Escalator term deposit is likely not the best product for you if you require use of the funds in under five years’ time. Your best bet would be a redeemable term deposit or a non-redeemable term deposit with a shorter term length based on your home purchase plan.
 
Q – Are you looking to reduce the volatility in your retirement investments?

If you have stock market related securities and are concerned with the volatility and are looking for some diversification, term deposits may be suitable for you. Unlike a mutual fund or an individual stock investment, term deposits provide you with a set rate of return. Most financial advisors recommend people to have more fixed income type investments, such as term deposits, as they get closer to their retirement years.
 
Q – What’s the best way to invest in term deposits?

An investment strategy called “Laddering” is commonly used to “smooth out” the interest rates mix in a portfolio. Laddering is an approach that staggers the maturity dates of the term deposits. This allows you to limit the fluctuation of interest rates over time. In other words, say a 5 year posted rate is currently higher than a 1 year fixed rate, it does not mean you should invest all your funds into the 5 year rate. If interest rates continue to rise, you may miss out on the rising rates. In contrast, if rates are on the decline you will limit the downside interest rate risk if your term deposits are staggered to mature at different times.
 


For more details please give us a call at 604 683 2434 or email at invest@vpcu.com