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Are term deposits a good choice for you?

A term deposit offers a savings option with principal protection and guaranteed growth.


Understanding term deposits 

A term deposit is a risk-free investment that offers higher interest rates than a traditional savings account. Unlike a traditional savings account, term deposits require you to invest your money for a fixed period, or a term, that can range from 30 days to several years, depending on your preference and financial goals. 


Benefits of a term deposit

Besides growing your savings, term deposits have several advantages

Higher interest rates: Term deposits provide higher returns compared to standard savings accounts. By investing in a term deposit, you can watch your money grow at a faster pace. 


Guaranteed returns: Unlike investments that are subject to market fluctuations, term deposits offer guaranteed returns. You'll know exactly how much you'll earn by the end of the term, giving you peace of mind and stability. 


Low risk: Term deposits are considered low-risk investments. Your money is protected, and even if the market experiences volatility, your principal amount and interest remain intact.* 

*This does not include index-linked term deposits, such as MarketWise term deposits. 


Types of Term Deposits

Term deposits come in various forms, each offering different levels of flexibility

Fixed/non-redeemable term deposits

These are the most common type of term deposits with a fixed term length. This is an ideal investment choice with predictable returns as long as you don’t need your funds before the term ends.

Cashable term deposits

Cashable term deposits provide the highest level of flexibility because you have the option to withdraw your funds before the maturity date without any penalties. Although they have lower interest rates than a fixed term deposit, you can access your money when needed.

Redeemable term deposits

Redeemable term deposits let you redeem your investment before the maturity date, but they usually come with penalties or reduced interest rates. This option is suitable if you anticipate needing early access to your funds while still earning a reasonable return.

MarketWise term deposits

Gulf & Fraser’s MarketWise term deposit is ideal for those seeking higher potential returns than traditional term deposits, without risking your principal investment. Start with a minimum $1000 deposit. Learn more.

When to consider term deposits 

Term deposits are particularly beneficial in certain situations

  • Saving for a specific goal: If you're working towards a financial goal, such as a down payment on a home or preparing for your child's education, a term deposit can help you achieve that goal within a fixed timeframe. 
  • Minimizing risk: If you have a low tolerance for risk and want to protect your savings while earning a competitive return, term deposits are an excellent choice. They provide stability and are ideal for those who prioritize capital preservation. 
  • Short-term savings: If you have a lump sum of money that you don't need immediate access to, placing it in a term deposit for a shorter period can help you earn more interest than a regular savings account. 

See our term deposit rates

Competitive rates for our members.
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Frequently Asked Questions

Here are some common questions on term deposits
It’s simple. Book an appointment with an advisor and we’ll help you out.

Consider your financial goals and the timeframe within which you'll need access to your funds. If you're saving for a short-term goal, like a vacation, opt for a shorter term length. For long-term investments, choose a longer term to maximize your returns. 
While term deposits are designed to be held until maturity, unexpected financial needs can arise. Gulf & Fraser offers options for early withdrawal, but keep in mind that this may come with penalties or reduced interest rates. Review the terms and conditions to understand the rules associated with accessing funds before maturity. 

*The Credit Union Deposit Insurance Corporation (CUDIC), a statutory corporation, guarantees all deposits and non-equity shares of British Columbia credit unions as set out in the Financial Institutions Act. Credit union equity shares, debt instruments and investments such as mutual funds or RRSP equity plans are not covered by CUDIC.

**Standard & Poor’s®” and “S&P®” are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Central 1 Credit Union and sublicensed by the Credit Union. “TSX” is a trademark of the Toronto Stock Exchange and has been licensed for use by Central 1 Credit Union and sublicensed by the Credit Union. MarketWise Term Deposits are not sponsored, endorsed, sold or promoted by Standard & Poor’s or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in these deposits.

​Want more information?

For more information on the return calculation or details and special conditions for our MarketWise term deposits, call 604-419-8888or talk to the experts at your local Gulf & Fraser branch.

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