GIC Options (Finance)

Redemption privlleges Non-redeemable: No portion of the principal may be withdrawn before maturity. Partially redeemable: A limited portion of the principal may be withdrawn on the GlC's anniversary dates. Fully cashable: The entire principal may be withdrawn on any date. Structure of Interest rates l Fixed rate: The interest rate does not change over the term of the GIC. Step-up rate: The interest rate is increased every six months or every year according to a [Ire-determined schedule. Variable rate: The interest rate is adjusted every six months or every year to reflect prevailing market rates. There may he a minimum “floor" below which rates cannot drop. Payment of interest I Regular interest version: Interest only is paid periodically to the investor. Compound interest version: Interest is periodically converted to principal and paid at maturity.