FAQ - Savings and investment - Market-linked guaranteed investment

You invested in a guaranteed investment that was, in fact, a term deposit issued by your caisse, so you did not invest directly in the markets. The underlying indexes just measure the return on your investment.

If this investment is in your TFSA or RRSP, the return on your guaranteed investment will not be taxed, as is the case for any other investment that is eligible for a registered plan.

The return on guaranteed investments that are not in your registered plan and do not offer a minimum annual guaranteed return cannot be known until maturity or unless the return is frozen. Unlike traditional term savings where the annual interest is taxed each year, the interest on your guaranteed investment is taxed only in the year when the return is known.

When a guaranteed investment not in your registered plan offers a minimum annual guaranteed return, the interest is taxable annually since the minimum guaranteed return is known in advance.

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