A Market+ program is principal guaranteed if held for the complete 3-year term. When a program is started, the majority of the deposit is placed in a guaranteed interest rate product which will accrue yields by maturity that equal the initial deposit and pay the 4.20% annual guaranteed return. This allocation guarantees that regardless of the performance of your market investment portfolio at least you will earn a 4.20% annual return and your initial deposit will be returned at maturity.
Market+ allocates your deposit to cash, market investments, and guaranteed interest-rate products. The combination of the allocation to the guaranteed interest rate product and its annual accrued interest is designed to guarantee your deposit by the end of the 3-year period. As a result, regardless of your market investments’ performance, your principal is guaranteed if held until the end of the period. This hypothetical illustration shows an example of what could happen to a $100,000 deposit in the Market+ program.
This is a hypothetical illustration and does not represent actual performance. Past performance is not indicative of future performance.
Market+ achieves principal guarantee by allocating a portion of your deposit to a guaranteed interest-rate product. In this illustration, $92,500 is placed in a guaranteed interest rate product whose interest rate is 5.80%. The interest earned over the 3-year term will grow the guaranteed interest rate product allocation to equal $100,000 by the end of the 3-year program.
Market Investments
The Market+ program yield is based on the performance of the investments in your selected portfolio. In this illustration, $6,350 of the Market+ deposit is allocated to market investments. For illustration purposes, assuming the account grows to equal $15,000⁵ by the end of the 3-year investment term.
Cash
Market+’s investment program allocates a small portion of your deposit to cash. In this illustration, $1,150 has been allocated.
Guaranteed Return
Market+ has a guaranteed return at the end of each term year. In this illustration, the guaranteed return rate is 3.00% (4.20% is the other option for the Market+ guaranteed return rate). Thus the return to you at the end of each year will be $3,000 and over the lifetime of the product the return will be $9,000.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article