GIC (Guaranteed Investment Certificate) & Term Deposits
Guaranteed Investment Certificates and Term Deposits
ICICI Bank Canada guarantees repayment at maturity of the principal sum and the interest earned on Guaranteed Investment Certificates/Term Deposits with ICICI Bank Canada (a “GIC” or a "deposit"). Unless otherwise instructed by the holder of the GIC (hereinafter, “holder” or “you”), at maturity the principal and accrued interest on the investment will automatically be reinvested for a term as may be decided by ICICI Bank Canada and at such rates as may be applicable at the time of reinvestment.
For GICs of one year or longer and in currencies other than United States Dollars, interest is calculated on the basis of 365 or 366 days and compounded and/or paid annually. When ICICI Bank Canada offers GICs in currencies other than United States Dollars and for terms of less than one year, interest is calculated on the basis of 365 or 366 and paid at maturity. For GICs denominated in United States Dollars and over a one year term, interest is calculated on the basis of 360 days and compounded and/or paid annually. When ICICI Bank Canada offers GICs in United States Dollars for terms of less than one year, interest is calculated on the basis of 360 days and paid at maturity. The principal amount shall not become payable until the maturity date, unless you have chosen to redeem the GIC prior to its maturity date. The rate of interest paid on a GIC that is cashed prior to maturity, when permitted, will be adjusted to equal the cashable interest rate agreed to on the original purchase of the GIC. A GIC is not negotiable and may not be assigned by you.
Non-Registered Investment Terms and Conditions
- This certificate is not negotiable or assignable.
- Where there are two or more registered holders and payment may be made to any one, they agree with each other and with ICICI Bank Canada that each of them singly shall have the right to require ICICI Bank Canada to make a payment in favour of one of them alone and that payment by ICICI Bank Canada in favour of any one of them shall be a complete discharge to ICICI Bank Canada.
- Where there are two or more registered holders and the deposit is joint with the right of survivorship, it is agreed that after ICICI Bank Canada has received written notice of the death of any one of them, and subject to paragraph 5 below, any payments to be made by ICICI Bank Canada shall be made in favour of the survivors. The provisions of paragraph 2 shall also apply.
- The term “payment” means by actual credit to a registered holder’s account or by remittance of a bank cheque or bank draft or renewal for an additional term. The disposal of funds by ICICI Bank Canada shall discharge ICICI Bank Canada from all obligations in respect of the deposit or interest.
- These terms and conditions are subject to ICICI Bank Canada complying with the provisions of any present or future law, regulation, order or judgment of any court which imposes on ICICI Bank Canada a duty to take or refrain from taking any action in respect of the deposit or interest thereon.
- Nothing contained herein shall restrict the registered holder(s) from granting a security interest in this certificate to ICICI Bank Canada.
- Unless otherwise agreed, reinvestment at maturity will be for the same term as stipulated in the maturing certificate. The interest rate payable on reinvestment will be the rate of interest applicable on the date of renewal as posted in the branch of account. Interest will be calculated and paid in the same manner as stipulated in the maturing certificate. ICICI Bank is not required to renew the deposit at maturity. If it chooses not to renew such deposit, it shall notify the registered holder(s) prior to maturity that the deposit will not be renewed. Any deposit not renewed by ICICI Bank Canada for any reason shall be a non-interest bearing demand deposit after the date of maturity. For the purpose of this paragraph, notice will be deemed to be received by the registered holder(s) two (2) business days following its posting by regular mail.
- Upon the death of one or more of the registered holder(s), ICICI Bank Canada will redeem the deposit upon receipt, in form satisfactory to ICICI Bank Canada, of proof of death and of other evidence of authority, upon surrender of the certificate properly endorsed and upon receipt of any other documentation as may be required by federal or provincial law.
- The deposit may be withdrawn in whole or in part before the end of the first or any additional term subject to the right of ICICI Bank Canada to require 24 hour's notice of such earlier withdrawal and will be cashable at a prescribed early redemption rate.
- If the deposit is withdrawn before maturity and if there is an overpayment of interest such overpayment of interest will be deducted from the deposit.
- The deposit may not be redeemed or withdrawn prior to its maturity.
For non-registered investments, either paragraph 9 & 10 or paragraph 11 will apply.
- Please refer to ICICI Bank Canada’s Tax-Free Account Terms and Conditions, which are applicable to Tax-Free GIC and are incorporated herein by reference. Paragraphs 1 and 4 -8 are applicable to the Tax-Free GIC.
Guaranteed Investment Certificate RSP Terms and Conditions
ICICI Bank Canada, a depository, hereby agrees to hold on deposit in an ICICI Bank Canada Retirement Savings Plan (hereinafter called the “Plan”), deposits (hereinafter called “contributions”) from the annuitant named in the application for the Plan (hereinafter called “you”), or contributions made by your spouse, on the following terms:
- Registration and Compliance: ICICI Bank Canada will apply for registration of the Plan as a retirement savings plan pursuant to the provisions of the Income Tax Act (Canada) and, if applicable, the provisions of any similar legislation of the Province in which you reside (hereinafter collectively referred to as the “Applicable Tax Legislation”). ICICI Bank Canada and you agree that the Plan shall at all times be operated in compliance with the Applicable Tax Legislation.
- Your Contract: ICICI Bank Canada will maintain a contract in your name which will record the contributions made by you only or by your spouse only and the deposit options if both you and your spouse wish to make contributions in your name.
- Contributions: Contributions received from you or your spouse and all interest thereon shall be held by ICICI Bank Canada on deposit in accordance with the provisions of the Plan and all Applicable Tax Legislation. ICICI Bank Canada will hold such monies on deposit as provided in section 10 hereof. It is the sole responsibility of the contributor to your Plan to ensure that deductions claimed for income tax purposes do not exceed the permitted deductions under the Applicable Tax Legislation. Any penalty taxes levied under the Applicable Tax Legislation upon excess contributions shall be your responsibility.
a. Before Maturity – ICICI Bank Canada will make payments before the Plan’s maturity only as a refund of premiums, payment to you or, upon receipt of a written request and authorization, payment to you or your spouse (if applicable) of an amount as defined in subsection 146(2)(c.1) of the Income Tax Act (Canada).
b. After Maturity – ICICI Bank Canada will make payments subsequent to the Plan’s maturity only as a retirement income to you (see paragraph 10) or as a full or partial commutation of the retirement income under the Plan or as defined in subsection 146(2)(c.2) of the Income Tax Act (Canada). Taxes will be withheld if necessary from any withdrawal as required by Applicable Tax Legislation.
- Deposit Options: ICICI Bank Canada makes available deposit options which qualify as investments for retirement savings plan purposes. Details of these options may be obtained from the bank at any of its branches in Canada, or as otherwise advised by your representative. ICICI Bank Canada shall invest a portion or all of the Plan in one or more of the deposit options upon receiving your instructions in writing.
- No Right of Offset: ICICI Bank Canada shall have no right of offset as regards the property held in your account in connection with any obligation or debt you may owe ICICI Bank Canada, neither may the property held in your account nor your retirement income be pledged, assigned or in any way alienated as security for a loan or for any purpose other than that of providing for you a retirement income.
- Income Tax Receipts: On or before March 31 of each year ICICI Bank Canada shall forward to your registered address a receipt(s) for income tax purposes with respect to contributions received by ICICI Bank Canada under the Plan for the preceding taxation year. ICICI Bank Canada will also forward to your registered address prescribed forms as and when required by the Applicable Tax Legislation for withdrawals made in the year. The Bank will be dispatching the income tax receipts (tax slips) at your address in our records as on December 31 of the previous year.
- Fees: ICICI Bank Canada shall be entitled to receive a fee upon transfer of Plan funds to another financial institution. Fees in effect at the time the Plan is opened shall be disclosed to you in writing at that time. ICICI Bank Canada reserves the right to amend these fees from time to time subject to a minimum of 30 days’ notice to you and where necessary to Federal and Provincial tax authorities.
- Date of Birth: Your statement of your date of birth contained in your application for your Plan shall be deemed to be your certification of your age upon which ICICI Bank Canada may rely and an undertaking by you to provide any further evidence of proof of age that may be required when retirement income is to be provided.
- Retirement Income: Your Plan will mature on a date (“maturity date”) which must not be later than December 31 of the year in which your 71st birthday occurs or as may otherwise be specified in the Applicable Tax Legislation and subsection 146 (1) of the Income Tax Act (Canada). On the maturity date chosen by you, ICICI Bank Canada shall terminate the deposits in your account and use the proceeds to purchase your retirement income as defined by the Applicable Tax Legislation subject to the following conditions:
a. (i) the Plan does not provide for a payment to the annuitant of a retirement income except by way of equal or annual or more frequent periodic payments thereafter; (ii) the Plan does not provide for periodic payments in a year under an annuity after the death of the first annuitant, the aggregate of which exceeds the aggregate of the payments under the annuity in a year before that death;
b. the retirement income may not be assigned in whole or in part;
c. on your death if the annuity becomes payable to a person other than your spouse it must be commuted and paid in one lump sum; and
d. if the funds held in the Plan at maturity are not sufficient to produce a retirement income of greater than $25.00 per month, the funds will be paid to the Annuitant in a single lump sum. It will be the Annuitant’s sole responsibility to select a retirement income from those permitted by the Applicable Tax Legislation and to notify the Bank by 30 days’ notice in writing of the date chosen by the Annuitant for the commencement of this retirement income, providing the name and address of the company from which the retirement income is to be purchased. If the Bank is not so notified by the Annuitant, all funds held in the Plan at maturity will be transferred to a regular account with the Bank on behalf of the Annuitant
- Payment on Death: In the event of your death prior to the maturity date, ICICI Bank Canada shall, upon receipt of satisfactory evidence of your death and all other legal documents that ICICI Bank Canada may require, redeem the deposits held in your account and, after deduction of all proper charges including any applicable income tax, do one of the following:
a. make a lump-sum payment to or for the benefit of the beneficiary designated by you in accordance with this agreement: or
b. if no beneficiary has been designated, if all the beneficiaries so designated have predeceased you, or if the proceeds cannot be distributed to your designated beneficiary because it is not permitted by applicable law, distribute the proceeds to your estate.
- Beneficiary Designation: If permitted by applicable law and recognized by ICICI Bank Canada for such purpose, you may designate in the following manner one or more beneficiaries in the event of your death prior to the maturity date. A designation shall only be made, altered or revoked by an instrument in a form provided by ICICI Bank Canada for such purpose, dated and signed by you and filed with ICICI Bank Canada prior to your death or, if a provincial law does not allow such a designation, by your Will. If more than one such designation has been filed in the form provided by ICICI Bank Canada and if such designations are inconsistent, then to the extent of such inconsistency ICICI Bank Canada shall make payment only in accordance with the permitted designation bearing the latest execution date and such designation shall be determinative of any inconsistency. ICICI Bank Canada shall be fully discharged from any further obligations and liability in connection with the Plan upon payment being made in accordance with this agreement.
- No Advantage: No advantage, other than: (i)a benefit (ii) an amount described in paragraph (a) or (c) of the definition of “benefits” in subsection 146(1) of the Income Tax Act (Canada): (iii) the payment or allocation of any amount to the Plan by the issuer: (iv) an advantage from life insurance in effect on December 31, 1981: or (v) an advantage obtained from administrative or investment services provided for the Plan, that is conditional in any way on the existence of the Plan may be extended to the annuitant or to a person with whom he was not dealing at arm’s length.
- Amendments to Plan: ICICI Bank Canada may from time to time at its discretion amend this Plan with the concurrence of Canada Customs and Revenue Agency if required and, if applicable, the concurrence of provincial tax authorities by giving 30 days’ notice in writing to you; provided, however, that any such amendments shall not have the effect of disqualifying the Plan as a registered retirement savings plan with the meaning of the Applicable Tax Legislation.
- Notices: Any notice given to ICICI Bank Canada hereunder shall be sufficiently given if delivered to ICICI Bank Canada at any of its branches in Canada or if mailed, postage prepaid, addressed to ICICI Bank Canada, at any of its branches in Canada and shall be considered to have been given on the day that it is actually received by ICICI Bank Canada. Any notice, statement or receipt given by ICICI Bank Canada to you shall be sufficiently given if mailed, postage prepaid, addressed to you at your last address known to ICICI Bank Canada in connection with this Plan and such notice shall be deemed to have been given on the day of mailing.
- Indemnity: You, your successors, executors, and administrators shall at all times indemnify and save harmless ICICI Bank Canada in respect of any taxes, assessments or other charges levied or imposed by any governmental authority upon or in respect of the Plan.
- Applicable Laws:This agreement shall be governed and construed in accordance with the laws of Canada except that the term “spouse“ shall include a “common-law partner”, and both those terms shall be interpreted as they are interpreted for purposes of the Income Tax Act (Canada). Any reference to the Income Tax Act (Canada) or any provision thereof shall be construed as a reference to the Income Tax Act (Canada) as it may be amended from time to time.
- Binding Agreement: This agreement shall be binding upon your heirs, executors and administrators and upon the successors and assigns of ICICI Bank Canada.
- Locked-In Retirement Account (LIRA): If an addendum concerning a LIRA is attached to this agreement, the following provisions shall prevail;
a. in case of conflict between the addendum and this agreement the provisions of the addendum shall prevail;
b. locked-in funds shall be accounted for separately from non locked-in funds; and
c. the terms of the addendum may be amended from time to time without notice to you in order to ensure that the LIRA continues to comply with all legislation including, without limitation, applicable pension benefits legislation, governing locked-in funds.
- Transfers: Subject to any penalty, interest rate which may be applied to Plan funds transferred prior to the maturity date, ICICI Bank Canada shall within twelve (12) business days of receipt of written notice (or if the transfer is to be effective upon the maturity date of a term deposit, with twelve (12) business days from such maturity date), transfer as directed pursuant to the provisions of the Applicable Tax Legislation and any other applicable legislation all or part of the property of the Plan less any fee that ICICI Bank Canada is entitled to receive for the transfer of Plan funds to another financial institution/issuer. ICICI Bank Canada will resign upon appointment of the successor issuer. Any issuer or company resulting from the merger, amalgamation etc. by the sale of ICICI Bank Canada’s business will become the successor issuer of the Plan.