A new guaranteed investment certificate launched by ATB Financial is showing confidence in the recovery of Alberta’s economy, offering a bonus if the province’s unemployment rate drops.

ATB says its Choose Alberta GIC offers a 1.65 per cent guaranteed return and a one-time bonus of up to 0.75 per cent tied to a drop in the provincial unemployment rate.

The new product from the Alberta financial institution and Crown corporation is rare, given the rise of market-linked GICs, which base payments primarily on the performance of stocks. GICs offer a guaranteed rate of return over a fixed period of time, while also protecting an investor’s initial investment (also known as the principal).

"What we're saying with the Choose Alberta GIC is that we believe in Alberta," said Rob Bennett, ATB’s executive vice president of retail financial services.

"We believe that, even with a few battle scars, Alberta will not only survive the downturn, but come back as strong as ever."

Unemployment claims and beneficiaries in Alberta surged to 77,810 in May, up 12.1 per cent from the previous month, marking the largest advance since June 2009, according to Employment Insurance claims data released Thursday.

A TD Bank report released earlier this week also said Alberta’s current economic downturn will likely be the province’s longest since the 1980s, citing a prolonged period of low oil prices and the impact of wildfires in May. The TD economists also noted, however, that the loonie’s fall and a strengthening U.S. economy are helping to boost Alberta’s exports outside the energy sector.

Deposits into the Choose Alberta GIC will be used to support Alberta businesses and communities, Bennett said.

“We found an opportunity for customers – not only to know that [their] money is going back into the community that they live and work in – there’s actually an opportunity for them now to see the upside and … help create jobs and get capital back out into the Alberta economy,” he said in a video introducing the GIC.

“It gives customers a real opportunity to be part of the game and make a real difference here at home in Alberta.”