For Canadians seeking the growth potential of the stock market without the risk of losing their initial investment, Alterna’s MarketTracer Term Deposit offers an ideal hybrid solution. Offered primarily through Alterna Savings, this unique investment vehicle functions similarly to a traditional Guaranteed Investment Certificate (GIC), but instead of a fixed interest rate, your return is linked to the performance of an underlying stock market index or a specific basket of securities, such as the S&P/TSX 60 or the Canadian Financial Services sector.
The core condition that makes the MarketTracer appealing to individual investors is its 100% principal guarantee. No matter how poorly the underlying stock market performs during your term, your initial deposit is completely protected. If the market performs well, you capture a percentage of that growth. Below, we outline the exact deposit conditions, how to purchase a MarketTracer online, and tips for managing your digital investment portfolio.
| Category | Details |
|---|---|
| Minimum Investment | $500 CAD |
| Available Terms | Typically 3 or 5 Years (Non-redeemable) |
| Principal Protection | 100% Guaranteed |
| Eligible Accounts | TFSA, RRSP, RRIF, Non-Registered |
Step-by-Step Guide to Investing in a MarketTracer Term Deposit
- Step 1: Log into the Alterna online banking portal or the mobile app using your standard Client ID and your secure alphanumeric password.
- Step 2: From your main dashboard, navigate to the Investments tab and select Purchase a Term Deposit / GIC.
- Step 3: Browse the available options and select the MarketTracer Term Deposit. You will be prompted to choose an underlying index (such as the Global Diversified or Canadian Index) and a corresponding 3-year or 5-year term.
- Step 4: Select the account you wish to fund the purchase from (e.g., your TFSA or eChequing account) and enter your investment amount, ensuring it meets the $500 minimum requirement.
- Step 5: Review the specific participation rate and maximum cumulative return conditions for the current sales period, acknowledge the terms, and click Submit to finalize your purchase.
Pro-Tip: Because MarketTracer Term Deposits have the potential to yield significantly higher returns than standard fixed-rate GICs during a strong bull market, your safest and most efficient tax hack is to hold this product inside a Tax-Free Savings Account (TFSA). By registering the MarketTracer under your TFSA umbrella, 100% of the market-linked upside you earn at the end of your 3 or 5-year term is completely shielded from capital gains and income taxes.
Troubleshooting Common Digital Banking Pain Points
- Multi-Factor Authentication (MFA) Delays: When purchasing a new investment product online, Alterna will trigger an MFA security check. If your verification SMS does not arrive, your cellular provider may be blocking shortcodes. Opt to receive your one-time code via email instead to ensure your session does not time out.
- Browser Errors and Blank Screens: If the Investments page freezes while attempting to load the current MarketTracer rate sheet PDFs, your browser's integrated pop-up blocker is likely interfering. Temporarily disable strict tracking shields for the Alterna domain or complete your purchase using an Incognito/Private window.
- Locked Account ID: Entering the wrong login credentials repeatedly will freeze your digital banking profile, preventing you from finalizing your investment before the current MarketTracer sales period closes. You cannot bypass this lock online; you must call the Alterna Contact Centre at 1.877.560.0100 to verify your identity and restore access.
Frequently Asked Questions
Can I cash out my MarketTracer Term Deposit early?
No. MarketTracer Term Deposits are strictly non-redeemable before maturity. Because your funds are actively linked to 3-year or 5-year market index cycles, you must be comfortable locking away your money for the entire duration of the term.
What happens if the stock market crashes during my term?
If the underlying index performs poorly and finishes lower than its initial starting value, your return on the MarketTracer will be 0.00%. However, because your investment is 100% principal-protected, you will still receive your exact original deposit back in full at maturity.
Is the MarketTracer Term Deposit insured?
Yes. If you purchase the MarketTracer through Alterna Savings, your eligible deposits are protected by the Financial Services Regulatory Authority of Ontario (FSRA), providing peace of mind alongside your market-linked growth potential.
