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Get Security and Growth in One Investment.

When you invest, you have a decision to make—do you choose an investment that guarantees your principal, or one that offers the potential for growth? With the RBC MarketSmart GICs with Guaranteed Minimum Return, you don't have to choose because you get the best of both worlds in one simple investment solution.

How They Work

RBC MarketSmart GICs with Guaranteed Minimum Return are linked to the performance of the stock market, giving you the opportunity to earn higher returns typically associated with equities:

  • Your principal is 100% secure. Your original investment is 100% guaranteed, so you always get your principal back at maturity.
  • You receive a minimum guaranteed return. You also get a minimum return on your investment—no matter how the market performs.
  • You have the potential for higher returns. If the markets perform well, you'll get a higher rate of return, up to the maximum rate set out at the time you purchase. View the return scenarios (opens new window) and how returns are
    calculated     (opens new window)    .
 

Take a closer look

All three of the following RBC MarketSmart GICs with Guaranteed Minimum Return offer you 100% principal protection and a guaranteed minimum return:

 
 

Ready to Invest?

RBC MarketSmart GICs offer security and growth in one simple solution. Call or visit us today to invest or learn more:

Call 1-800-463-3863
Visit Your Local Branch (opens new window)
 
 

Ready to Invest?

RBC MarketSmart GICs offer security and growth in one simple solution. Call or visit us today to invest or learn more:

 
 

Ideal if you:

  • Need a guaranteed minimum return
  • Want a secure investment
  • Are looking for higher return potential
  • Want a simple solution
 
 

Earn up to 9% interest per 3-year term

based on market performance†

 
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Potential Return Scenarios

To get a better idea of how an RBC MarketSmart GIC works, let's take a look at some return scenarios.

For example, let's assume you purchase a 5-year RBC Canadian Utilities MarketSmart GIC and, at the time of purchase, the minimum return is set at 5% and the maximum return is set at 25%. Depending on the growth of the underlying index over the 5-year term, there are three possible scenarios: the market is up, the market is down or the market is way up:

Scenario 1: Market is UpScenario 1: Market is Up
If the underlying index moves from 100 to 120 over the 5-year term of the GIC, this would indicate an increase of 20% in the index. In this scenario the increase is above the minimum and below the maximum. You would receive 100% of your principal plus a 20% return on your investment.

Scenario 2: Market is DownScenario 2: Market is Down
If the underlying index moves from 100 to 80 over the 5-year term of the GIC, you would, in this scenario, receive 100% of your principal plus the 5% guaranteed minimum return set out at the time of purchase.

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How Returns are Calculated

Unlike traditional GICs, RBC MarketSmart GICs have a variable return that depends on the performance of the stock market. While you will always receive 100% of your principal and a minimum guaranteed return, your additional return is based on three factors:

  • Maximum return rate: you are always guaranteed to receive at least the minimum return. If the underlying equity index tied to your GIC increases, you will get a higher rate of return, up to the maximum rate set out at purchase
  • Index Settlement Level (ISL): The closing index level for the business day preceding the maturity date
  • Index Base Level (IBL): The closing index value on the first business day after the GIC issue date

The Formula used to calculate your variable return is the percentage change in the level of the index:

Variable Return = Principal x (ISL-IBL)/IBL

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Legal

1) The U.S. Market Smart GIC is not sponsored, endorsed, sold or promoted by Standard & Poor's and they make no representation regarding the advisability of investing in the RBC U.S. MarketSmart GIC.

Telephone purchasers may cancel this investment purchase within two days of receipt of the written Special Conditions and fact sheet by calling 1-800-463-3863 or visiting your branch.

Past performance of this product is not indicative of future returns. Your return will depend on whether and how much the S&P 500 Index level increases up to the stated maximum return over your investment's term. This GIC does not provide you regular interest. For full product details, including how variable return is calculated, refer to the fact sheet & special conditions (opens PDF in new window), visit your RBC branch or call 1-800-463-3863.

2) The RBC Canadian Banking MarketSmart GIC is not sponsored, endorsed, sold or promoted by Standard & Poor's or The Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in RBC Canadian Banking MarketSmart GIC.

Telephone purchasers may cancel this investment purchase within two days of receipt of the written Special Conditions and fact sheet by calling 1-800-463-3863 or visiting your branch.

Past performance of this product is not indicative of future returns. Your return will depend on whether and how much the S&P/TSX Banks Index level increases up to the stated maximum return over your investment's term. This GIC does not provide you regular interest. For full product details, including how variable return is calculated, refer to the fact sheet & special conditions (opens PDF in new window), visit your RBC branch or call 1-800-463-3863.

3) The RBC Canadian Utilities MarketSmart GIC is not sponsored, endorsed, sold or promoted by Standard & Poor's or The Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in the RBC Canadian Utilities MarketSmart GIC.

Telephone purchasers may cancel this investment purchase within two days of receipt of the written Special Conditions and fact sheet by calling 1-800-463-3863 or visiting your branch.

Past performance of this product is not indicative of future returns. Your return will depend on whether and how much the S&P/TSX Capped Utilities Index level increases up to the stated maximum return over your investment's term. This GIC does not provide you regular interest. For full product details, including how variable return is calculated, refer to the fact sheet & special conditions (opens PDF in new window), visit your RBC branch or call 1-800-463-3863.

† The return on the 3 new RBC MarketSmart GICs (choice of RBC Canadian Banking MarketSmart GIC, RBC U.S. MarketSmart GIC, RBC Canadian Utilities MarketSmart GIC) is expressed here as interest rate per term and depends upon the performance of the Equity index to which it is linked. You may earn up to a Maximum Return of 9% per 3 year term, if the Equity Index performs well, and you are guaranteed a Minimum Return of 1.5% per 3 year term, if the Equity Index performs badly. For full product details, including how the return is calculated, please visit http://www.rbcroyalbank.com/products/gic/marketsmart-suite.html (opens new window) and call 1-800-463-3863.

®/TM Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.

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