Investing products

What is a U.S. Term Deposit?

A U.S. Fund Term Deposit is a secure investment option that allows you to earn interest on your U.S. dollar funds at a guaranteed rate. Your initial investment is protected, giving you predictable returns while your money grows. U.S. Fund Term Deposits are available in one- to five-year terms, with longer terms generally offering higher rates of return. 

U.S. Fund Term Deposits can be a good option if you hold U.S. funds and want to earn interest while keeping your money in U.S. currency. They may be useful for members who regularly spend time in the U.S., such as snowbirds, or anyone looking to add U.S. dollar investments to their overall financial plan. Like other term deposits, the right option depends on your goals, timeline and financial needs.

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Why choose U.S. Term Deposits?

Low-risk investment

Fixed rates, guaranteed principal.

U.S. Funds Term Deposits offer fixed interest rates, and your initial investment is guaranteed.

Protection from exchange rate fluctuation

No need to convert your U.S. funds.

Since you don’t have to convert your U.S. funds, you’re protected from fluctuating exchange rates.

Potential to earn higher interest

Higher rates than a U.S. dollar chequing account.

U.S. Funds Term Deposits have the potential to earn a higher interest rate than a U.S. dollar chequing account. Generally, the longer the term length, the higher rate of interest you’ll receive.

How does it work?

When you invest in a U.S. Fund Term Deposit, you choose the amount of U.S. funds you want to invest and the term length that fits your goals. Conexus offers one- to five-year non-redeemable terms, which means your funds remain invested until the maturity date. In return, you receive a guaranteed interest rate for the selected term, allowing your U.S. dollar savings to grow while your initial investment is protected. 

At maturity, your investment and interest are paid out or can be renewed based on your goals. A minimum yearly investment is required.

Is this right for you?

Right for you if:

  • You're a risk-averse investor. Since your initial investment is guaranteed, U.S. Fund Term Deposits are considered low-risk investments. This makes them a great choice for more cautious investors.
  • You want predictable returns. U.S. Fund Term Deposits offer a fixed interest rate, so investors can count on predictable returns.
  • You're looking for an affordable investment option. Minimum investments for U.S. Fund Term Deposits are relatively affordable, making them 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 limited to the locked-in rate.
  • You want to access your funds at any time. U.S. Fund Term Deposits are non-redeemable, meaning funds are not 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 those with long-term investment plans.
FAQs

Common questions.

Here’s what people ask us the most.

Yes. Your initial investment is guaranteed, and you’ll earn the agreed-upon interest rate for the selected term. U.S. Fund Term Deposits are considered a low-risk investment option for members looking for predictable returns.

Conexus offers U.S. Fund Term Deposits with one- to five-year terms. Longer terms generally offer higher interest rates, depending on current rates available.

A U.S. Fund Term Deposit allows you to keep your savings in U.S. dollars while earning interest. This can be helpful if you regularly use U.S. funds or want to maintain U.S. dollar savings without converting back and forth.

U.S. Fund Term Deposits may be a good option if you have U.S. dollar savings, prefer predictable returns and don’t need access to your funds until maturity. They can be especially useful for members who spend time in the U.S., such as snowbirds.

Have questions?

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.

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Mutual funds, other securities and securities related financial planning services are offered through Aviso Wealth, a division of Aviso Financial Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. Qtrade and Qtrade Direct Investing are trade names and/or trademarks of Aviso Wealth Inc. and its subsidiaries. 

Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. 

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