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The National Bank launches the Escalarater
Montreal, 22 October 2003 - The National Bank has just launched the Escalarater, a progress GIC that enhances its offering of guaranteed investment certificates.
"The return offered by the Escalarater compares favourably with other products on the market. The fact that it is redeemable makes it attractive to customers who want some liquidity", said Jean Blouin, Vice-President – Deposit Solutions and Credit.
This product is specifically designed for people who want both guaranteed principal and guaranteed returns at maturity. What's more, it offers the flexibility that investors want. If rates rise, the investor can opt to redeem his investment before maturity to take advantage of rate increases.
The Bank offers a 3- or 5-year term Escalarater which is redeemable at the customer's option. It is also available in an RRSP. The 3-year GIC, redeemable in full on its anniversary dates after the first year, offers an average return of 2.614%, while the non-redeemable GIC has an average return of 3.009%.
The average return on the 5-year GIC, which can be redeemed in its entirety on its anniversary dates after the second year, is 3.292%, while the average return on a non-redeemable GIC is 3.634%, with a rate of 7% for the last year of the term. The minimum investment is $500. The Escalarater is available at all National Bank branches.
Table of returns for Escalarater products on October 22, 2003
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Term
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1
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2
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3
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4
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5
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Average
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Redeemable Escalarater
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3 years
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2.00 %
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2.25 %
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3.60%
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2.614 %
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Non-Redeemable Escalarater
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3 years
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2.00 %
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2.25 %
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4.80 %
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3.009 %
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Redeemable Escalarater
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5 years
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2.00 %
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2.25 %
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3.00 %
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3.75 %
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5.50 %
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3.292 %
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Non-Redeemable Escalarater
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5 years
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2.00 %
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2.25 %
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2.75 %
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4.25 %
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7.00 %
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3.634%
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About National Bank of Canada
National Bank of Canada is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its customers elsewhere in the world. The National Bank offers a full array of banking services, including corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management, as well as mutual fund and retirement plan management. The National Bank has more than $75 billion in assets and, together with its subsidiaries, employs over 17,000 people. The Bank's securities are listed on the Toronto Stock Exchange (NA: TSX). For more information, visit the Bank's website at www.nbc.ca.
Information (the telephone number and e-mail address provided below are for the exclusive use of journalists and other media representatives):
Denis Dubé
Director – Public Relations
National Bank of Canada
Tel.: (514) 394-8644
E-mail: denis.dube@nbc.ca
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