[ssimps]

Doesn't make a diff. - the terms and conditions seem to be the same.
What do you mean cap?

There is a diff, participation rate:

30% for 3 year term
50% for 5 year term

By cap I meant the max % return you could get per year. When I used to have these type of GICs (when it was 100% participation), they would often cap the maximum yearly return to say 7 or 8%, even if the index formula did better than that.

Thanks,

Sol

 

[mogul777]

As you'll see there is no cap on the return. It's simply 50% of the fund return plus a return of principal. No gain or a loss for the fund you get zero return, simply your money back. Fund makes 50% you get 25%, fund makes minus 50% you get zero. There is no guaranteed return beyond return of capital.

Buy a regular GIC get 3.5%, buy the fund get 6%, buy the market linked GIC get 3%. Hmm, wonder which is the better buy? Now keep in mind option two has downside risk, option one has no upside potential so those numbers for 2 and 3 can change drastically.

 

[sprocket1200]

buick, you are screwed. try to get your money back and pay off that debt!