LOW | HIGH |
To seek to achieve investment income consistent with the preservation of principal, primarily through investments in federal and other government bonds, corporate bonds and commercial mortgages.
Your deposits to Guaranteed Interest Accounts are held in John Hancock USA’s general account and allocated to your retirement account. Guaranteed Interest Accounts guarantee the return of principal plus compound interest earned over a defined term – 3, 5 or 10 years – provided all contributions remain in the account until the end of the guarantee period. Guaranteed interest rates are based upon the claims paying ability of the issuing company, John Hancock. Guaranteed interest accounts are not insured by the Federal Deposit Insurance Corporation (FDIC).
Guarantee periods are designed to correspond to your plan’s reporting year-end. Therefore, the guarantee period may be shorter than the defined term (i.e., the 3-, 5- or 10-year period chosen) depending on the date the account is established. For example, if you establish an account with a defined term of three years in the tenth month of your plan’s reporting year the actual guarantee period will be two years and two months.
Interest rates are published on the first day of each calendar month and apply to all regular ongoing contributions made to the account in that month. This is called the “new money” regular rate (For other types of contributions such as transfer contributions, interest rates may differ and may change during the month). At the end of each reporting year, a “composite rate” of interest is determined. The composite interest rate is a dollar-weighted average rate of all contributions to that Guaranteed Interest Account during that reporting year. After the end of each reporting year, contributions made will continue to earn that reporting year’s composite interest rate until the end of the guaranteed term. Note: for each reporting year in which you make a contribution to a Guaranteed Interest Account, a new account is established for all contributions made during that reporting year. Each account is identified individually on your statements.
Average Annual "New Money" Rates++ | ||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
3 Year Account | 0.11% | 0.34% | 0.54% | 0.84% | 1.58% | 1.12% | 0.30% | 0.05% | 0.05% | 1.00% |
5 Year Account | 0.55% | 0.85% | 0.85% | 1.19% | 1.80% | 1.22% | 0.40% | 0.05% | 0.05% | 1.02% |
10 Year Account | 0.81% | 1.16% | 1.04% | 1.38% | 1.96% | 1.33% | 0.50% | 0.05% | 0.05% | 1.04% |
Transfers between a Guaranteed Interest Account and other investment options may be permitted (at book value) under the terms of your plan’s contract with John Hancock USA. Transfers between Guaranteed Interest Accounts is not permitted. Permitted transfer dates are noted in the IPI section of the 404a-5 Plan and Investment Notice, if applicable. Transfers that are initiated on dates other than those specified in the contract may be subject to an adjustmentø. Similarly, withdrawals‡ taken from Guaranteed Interest Accounts prior to the end of the guarantee period may be subject to a market value adjustmentø.
At the end of the guarantee period (i.e., at “maturity”), contributions and interest earned from the Guaranteed Interest Account may be directed to any of the investment options available under your plan’s contract with John Hancock USA. However, if we do not receive written instructions from you specifying your choice of investment option(s) for the maturing amount at least 30 days before the maturity date, it will be automatically reinvested in a Guaranteed Interest Account of the same term at the current new money rate.
September | October | |||
---|---|---|---|---|
3 year | 2.20% | 1.85% | ||
5 year | 2.10% | 1.95% | ||
10 year | 2.00% | 2.00% |
GT-P2459-YC 11/24-48626