PARAMA Benefits: PARAMA has consistently paid higher interest rates than Canadian Chartered Banks on Term Deposits and GIC's. Plus - you could receive bonus interest payments through our profit sharing plan.
PARAMA term investments are an effective means of getting a higher rate of return on your money. Simply choose the amount, type and term that suits your requirements.
All eligible deposits at PARAMA are protected by Deposit Insurance Corporation of Ontario (DICO) up to a total of $100,000 for each of our members (www.dico.com).
TERM DEPOSITS
- minimum $500 deposit
- terms vary from a minimum of 30 days to a maximum of 5 years
- interest paid: for terms under 1 year, interest is paid on the date of maturity; for terms over 1 year, interest is paid annually
- principal investment is renewed automatically for the same term
- these certificates may be cashed before their due date at a reduced rate of interest
GIC'S (GUARANTEED INVESTMENT CERTIFICATE)
- minimum $1,000 deposit
- terms available from 1 to 5 years
- interest can be compounded or paid yearly and is deposited directly into your Daily Interest Chequing account
- certificates may not be cashed prior to date of maturity BUT carry a higher rate of interest than Term Deposits
MONTHLY INTEREST GIC
- minimum $10,000 deposit
- 1 year term
- interest is paid monthly
CASHABLE GIC'S
- minimum $10,000 deposit
- 1 year term
- cashable 60 days after initial deposit
U.S. DOLLAR GIC'S
- minimum US $1,000 deposit
- 1 year term
- principal investment plus interest earned is deposited directly into your U.S. Dollar Savings Account on date of maturity
- certificate may not be cashed prior to date of maturity
PARAMA Benefits: we reserve our best GIC interest rates for those members who save for their retirement needs through a PARAMA RRSP. In the event you are short of funds to make your desired contribution, we also provide attractive loan rates to help you catch-up or make your annual RRSP deposit.
RRSP (REGISTERED RETIREMENT SAVINGS PLAN)
An RRSP is a Government regulated plan that allows you to save for your retirement. A certain percentage of your earned income can be invested, then deducted from your total income, and will accumulate interest free of tax until withdrawn. The amount of your eligible contribution can be found on the Notice of Assessment of your most recent Income Tax Return. At PARAMA we offer you the ability to invest your funds in a variable rate savings account or in RRSP eligible GIC's or Mutual Funds**. Please note that RRSP GIC's and saving account deposits may be eligible for Deposit Insurance Corporation of Ontario protection in addition to available protection up to $100,000 for eligible non-registered deposits. (Please refer to www.dico.com for additional details)*
*(Please see your Member Representative about making automatic monthly or bi-weekly RRSP contributions from your account.)
RRIF'S (REGISTERED RETIREMENT INCOME FUND)
All Registered Retirement Savings Plans (RRSP's) must be terminated no later than December 31 of the year you turn age 71. Any withdrawals are fully taxable BUT by converting your RRSP to a PARAMA RRIF, you are allowed to begin receiving retirement income while continuing to defer income tax on your remaining capital and subsequent earnings, until withdrawn. Any income withdrawn from your RRIF is taxed at your annual income tax rate. Your RRIF investment options are the same as those listed for RRSP's above.
RESP'S (REGISTERED EDUCATION SAVINGS PLAN)
An RESP provides a convenient, Government-assisted way to save for your children's or grandchildren's post-secondary education. Income earned in the plan accumulates tax-deferred until withdrawn to pay for eligible school expenses. In addition, the first $2,000 of any annual contribution on behalf of the child is eligible for a 20% Government grant called the Canadian Educational Savings Grant (CESG). The parent or grandparent owns the plan and the child or grandchild receives Education Assistance Payments from the plan to cover expenses related to attending an institution of higher learning. PARAMA members currently can only purchase mutual funds through an Ethical Funds® account from Credential Asset Management Inc. (www.ethicalfunds.com).
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Parama is commited to providing our members with investment options suited to their individual needs. Today, more and more people are turning to mutual funds as a way to save for a secure financial future. Credential® Asset Management (www.credential.com), is proud to offer Ethical Funds, Canada's first socially responsible mutual fund company. Please contact our 2975 Bloor St. W. branch for details.
Mutual funds** are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
®Credential is a registered mark owned by Credential Financial Inc. and is used under licence. ®Ethical Funds is a registered mark owned by Ethical Funds Inc. and is used under licence.
