What is a term deposit?
A term deposit is a secure investment option that allows you to grow your savings while protecting your original investment. When you invest in a term deposit, you agree to leave your money with a financial institution for a set period of time, known as the term. In return, you earn a guaranteed interest rate. Conexus offers flexible term lengths from one to five years, with longer terms generally offering higher interest rates.
Term deposits can be held within registered accounts, such as RRSPs and TFSAs, or in non-registered accounts. They can be a good option if you’re looking for predictable returns, want to protect your savings and have a goal with a set timeline. Interest earned in non-registered accounts is taxable in the year it’s received.
Why choose term deposits?
Safety and stability
A low-risk investment with a guaranteed principal.
Term deposits are considered a low-risk investment, as they provide a fixed interest rate while ensuring your initial investment is guaranteed.
Predictable returns
Fixed rates mean predictable returns.
Since interest rates are fixed based on the length of term you choose, investors enjoy peace of mind when saving for a specific goal or during times of market uncertainty.
Affordable minimum deposit
Start with as little as $5.00.1
Term deposits can be started with as little as $5.001 up front and, depending on the length of term you choose, may only require a $500 minimum yearly investment.
How does it work?
When you invest in a term deposit, you choose the amount you want to invest and the length of time you’d like to leave your money invested. In return, you receive a fixed interest rate for the term, giving you predictable returns while your initial investment is guaranteed. Conexus offers a variety of term lengths and options to help you choose an investment that fits your goals.
Depending on the type of term deposit you choose, your access to funds may vary. Redeemable term deposits allow access to your money after 90 days without penalty, while non-redeemable term deposits provide access only when the term reaches maturity. Easy Start term deposits are designed for short-term saving goals and are available at maturity.
At the end of your term, your investment and interest can be paid out or renewed based on your preference. Interest may be paid monthly, annually or at maturity depending on the term deposit selected.
Is this right for you?
Right for you if:
- You're a risk-averse investor. Since your initial investment is guaranteed, term deposits are considered low-risk investments. This makes them a great choice for more cautious investors.
- You want predictable returns. Term deposits offer a fixed interest rate, so investors can count on predictable returns.
- You're looking for an affordable investment option. Minimum deposits are relatively affordable, making term deposits an attractive option for cost-conscious investors.
May not be right for you if you:
- Your risk tolerance is high. While term deposits offer security, their fixed interest rate means returns will be more limited.
- You want to access your funds at any time. Depending on the type of term deposit you select, funds may not be accessible until maturity.
- You have long-term investment goals. Since term deposits mature relatively quickly (between one to five years), they may not be the best choice for long-term investment planning.
Tools to help you reach your goals.
Common questions.
Here’s what people ask us the most.
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Yes. Eligible term deposits at Conexus are guaranteed by the Credit Union Deposit Guarantee Corporation (CUDGC). Your original investment is protected, and you’ll earn the agreed-upon interest rate for the length of your term. Term deposits are a low-risk option for members looking for predictable returns.
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Conexus offers a variety of term lengths to fit different savings goals. Options range from short-term investments to longer terms that may offer higher interest rates.
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It depends on the type of term deposit you choose. Redeemable term deposits allow access to your funds after 90 days without penalty. Non-redeemable and Easy Start term deposits are available at maturity only.
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When your term ends, you can choose what happens next with your investment. You can withdraw your funds, move them to another account or renew your term deposit based on your savings goals.
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Interest payment options vary depending on the type of term deposit you choose. Depending on the account, interest may be paid monthly, annually or at maturity. Check the details of your selected term deposit for specific interest payment options.
We're here to help.
Not sure which investment option is right for you? Our advisors can help you understand your choices, explore different options and create a plan that fits your goals and financial situation.
