Q: Hi 5i.
While I have never been a fan of TD Bank Locking my sister in to GIC's for her childrens' RESP, I have remained quiet on the topic.
I can no longer do that so I turn to you for some information.
For the Market linked GICs held from 2016 to 2021 - 5 years - DESPITE MARKETS and SUB Indexes being near All Time Highs, TD Bank has told my sister the maturity value of the Linked GIC is the "Minimum Guaranteed Interest Rate of 0.389% total.
Instead of the 20% Max Payout that I can easily calculate based on annual sub index values.
It is my understanding these Linked GICs are a structured product with two pieces; zero coupon Bond and a futures contract. If Markets are at all time highs (annual index values below) how can TD Bank claim the product meets only the minimum interest payment? Do you have any insight into these products or know of a resource. The reason we are in the dark is due to the Financial Planner at TD saying, "sorry I can't help you understand that, it is calculated at head office".
(side note: I wonder if this Planner will be able to sell this product after the March Know Your Client changes? The TD Product is obviously not known to the Branch Planners)
The GIC - 50/50 link to TSX Bank Index and TSX Utility Index
Bank Index Values(Jan 3, 2017 thru Dec 31 2021:
3169.62, 3467.88, 3067.94, 3398.64, 3326.3, 4418.27
Utility Index Values ( Jan 3, 2017 thru Dec 31, 2921)
235.05, 250.41, 216.78, 290.84, 319.5, 343.21
Are these products just a TD Bank Scam and will never pay out?
How can the Markets be at all time highs, after a massive run from March 2009, and this TD Bank Market Linked GIC ONLY payout "Minimum Guaranteed Interest of 0.389%?
What are the steps to make TD Bank prove this outcome?
At Branch level they claim ignorance.
PS.....Unfortunately it does not only pertain to this year. Now I have to go back to each of the past three years to see if only minimum interest was paid instead of my calculated max Payout.
While I have never been a fan of TD Bank Locking my sister in to GIC's for her childrens' RESP, I have remained quiet on the topic.
I can no longer do that so I turn to you for some information.
For the Market linked GICs held from 2016 to 2021 - 5 years - DESPITE MARKETS and SUB Indexes being near All Time Highs, TD Bank has told my sister the maturity value of the Linked GIC is the "Minimum Guaranteed Interest Rate of 0.389% total.
Instead of the 20% Max Payout that I can easily calculate based on annual sub index values.
It is my understanding these Linked GICs are a structured product with two pieces; zero coupon Bond and a futures contract. If Markets are at all time highs (annual index values below) how can TD Bank claim the product meets only the minimum interest payment? Do you have any insight into these products or know of a resource. The reason we are in the dark is due to the Financial Planner at TD saying, "sorry I can't help you understand that, it is calculated at head office".
(side note: I wonder if this Planner will be able to sell this product after the March Know Your Client changes? The TD Product is obviously not known to the Branch Planners)
The GIC - 50/50 link to TSX Bank Index and TSX Utility Index
Bank Index Values(Jan 3, 2017 thru Dec 31 2021:
3169.62, 3467.88, 3067.94, 3398.64, 3326.3, 4418.27
Utility Index Values ( Jan 3, 2017 thru Dec 31, 2921)
235.05, 250.41, 216.78, 290.84, 319.5, 343.21
Are these products just a TD Bank Scam and will never pay out?
How can the Markets be at all time highs, after a massive run from March 2009, and this TD Bank Market Linked GIC ONLY payout "Minimum Guaranteed Interest of 0.389%?
What are the steps to make TD Bank prove this outcome?
At Branch level they claim ignorance.
PS.....Unfortunately it does not only pertain to this year. Now I have to go back to each of the past three years to see if only minimum interest was paid instead of my calculated max Payout.
