Current DUCA rates (2014) | DUCA Credit Union | Discussion forum

Also, DUCA pays annual member dividends.

They might only be accessible to Ontarians.

I read maximum of $1,000/yr at 0.084% of investment. The return is significantly better, however, for loans.

If your gic rate is, for example, 3%, wouldn't this give you, in effect, 3.08%?

They have a calculator in the "Profit Sharing" section, where you can plug in numbers. Click on the "answer" section to see what your share would be.

TFSA is great, but the contribution limits restrict its usefulness considerably, especially for us 'old folks', who tend to have more money in RRSPs etc.
Maybe a long bond in TFSA would be good for you if you can afford to wait for it to mature. I'm sure you've considered this option. This is another problem for us retirees, as we can't afford to wait until long bonds mature - we might not live long enough to see the results!

Yes, I hear what you are saying, Jack. I'm taking advantage of what I can, in my situation, but the bottom-line problem of poor returns just barely keeping up with inflation, if that, and shorter life expetancy, persist, as you know.

I suspect that we have not yet faced the crisis that will surely be revealed when it becomes clear that retiree income is not able to sustain people any more. Negligible interest rates, battering of defined benefit pensions and so on will mean more people requiring the various minimum income supplements.
Meanwhile, $2+ billion profit for RBC today.

GIS is by definition not taxed, by the way, as the only way you can get it is if your income is below the radar.

Jack Manning said

Even if interest rates were 4.75% to 5.00% say even 6% that would not help most retirees because most of their net worth in their primary residence, real estate.

They don't have much in RRSP's and savings, investments in the first place for higher savings, GIC, bond rates to make much of a difference. Also, more retirees and those approaching retirement have more debt than there parents, grandparents ever did.

Perhaps there are some statistics to back you up, Jack, but it doesn't reflect everyone's situation by a long shot.

First, "retirees" now covers more than one generation of people, with varying characteristics, and can mean anyone from about 50 to 100 years. There are a variety of spending and saving habits through this span of years.

In my own circle of relatively recently retired friends and acquaintances, most people have enough assets that a doubling of interest rates could make a significant difference in their income. It is not at all unusual for a couple to have 500,000 in such assets between them, rrsp and otherwise, and often significantly more, especially if they have inherited money. Even at 500,000, the difference between 3% and 6% interest is $15,000, which is not insignificant, particularly if you can keep it down to the lowest tax rung by income splitting and so on.
I would also argue that the less you have, the more significant smaller amounts become. Even $1000 would make a significant difference to someone who is just barely getting by and doesn't want to dip into assets or must save them for a rainier day.

I have an elderly relative over 90 who is still living in her own home who receives GIS. She has some invest-able money which was until recently in Canada Savings Bonds (in the low 5 figures). She has to depend on that for things like house repairs.

When interest rates are so low, we (the public purse) end up subsidizing the poor elderly to a greater extent than if the rates were higher. If interest rates doubled, which would still not be high, it would make a big difference to an awful lot of people either directly through higher income or indirectly because we would not have to subsidize the poor elderly to the same extent. GIS is based on income, and the income from investible assets is so low right now for conservative investors that it is in fact robbing the public purse. Yet the banks are raking in billions.