Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this2:05 am
May 6, 2010
Offline
I would like to know what others think about using credit unions affiliates (ie. Achieva) for GIC interest. Considering a low 2.1% at banks compared to 3.85% or higher (rate just dropped today), are they as safe as the banks? I know they are insured but what are people's thoughts on the credit union affiliates like Achieva as their choice for interest income?
Thanks in advance.
RS
12:35 pm
i've never heard of a credit union failing and it's depositors getting screwed. i have a gic with achieva (paying 5.5% p/a over 5 years, not bad) and the interest has been deposited faithfully. hth
7:45 pm
October 5, 2009
Offline
I have been dealing with Achieva and Outlook Financial in Manitoba for a number of years. My experience with both has excellent. Credit Union deposits in Manitoba are 100% insured by the Central Credit Union, without any $$$ limit on the insurance. While the Central Credit Union is obviously not as safe as backing of the Federal Government, credit unions are a significant part of Manitoba culture, with strong backing by the Provincial Government. I would assume that the Provincial Government would step in if worse came to worse. I have no problem in having well over the usual $100,000 limit invested in these credit unions.
Maxa is also a Manitoba credit union, but they are a pain to work with. Although interaction with Maxa is possible on line, their website is the crappiest I've ever seen. The online records are incomplete; and they won't send you a hard copy of a certificate unless you pay them an additional $5.00.
The worst credit union I've ever dealt with is DUCA. Like ING Bank, they are Dutch; and their customer interaction is just as abrasive and totally incompetent. My wife and I both invested in GICs, with interest to be sent to us annually. Unlike real banks and trust companies, we never received the annual interest without first having to call them on the phone. We never received interest cheques that weren't weeks late. At the end of the GIC term, when we hadn't received cheques for the principal nor interest, I called them as usual to remind them that we are still waiting for our funds. The woman we talked to was at the Newmarket branch was really, really snotty; and refused to send the cheques out to us, which were already a couple weeks overdue. She said that we would have to write them a letter, requesting that they send us our money!!! :yell: I sort of flipped out at that point and demanded to speak to the manager. He arranged to send us our $$$; but wow!! I would never again deal with that bunch of incompetent idiots at DUCA.
7:09 pm
I fully agree with Stan, I to am a 10yr plus customer of Achieva Financial and while I had previously had money at Outlook & ING, I moved all my deposits, RSPs and terms to Achieva. All deposits are 100% guaranteed and are always among the best price CONSISTENTLY throughout the years --- believe me I shopped around!
My advice is to set-up both a savings account and GIC, this way you will have an ATM card and cheques with your Achieva account for simpler access. While they don't yet have electronic funds transfers, their account opening is automated (my daughter just opened her account) and their online banking is good.
Ask for your statements online and they will also give you $1 per month.
4:09 am
About the only downside I see to Achieva is that if you buy GICs from them your money is locked in for the term, with no early cash out option. MAXA and Outlook have early cash out of GICs in case you really really really need early access to your money.
I think all of the Manitoba credit unions use the same online web banking "engine" which is quite spartan. For example, MAXA has no way to just buy a GIC via online banking like you can with ING or Ally or Can Tire Financial from your high interest savings account. You need to fax in a form to their toll-free number (or snail mail it). It's a bit inconvenient.
It doesn't matter that they don't have electronic funds transfer to external accounts on their spartan online banking websites. Why? Because they are true chequing accounts. That means that you can link to them from accounts such as ING (send in a void cheque) or Ally (the most convenient due to their test deposit system, no cheque required). Watch out for fees though. Transfering from the Manitoba credit union account is the same as writing a cheque on that account.
Hope this helps. Another point is that federal legislation is about to allow Canadian credit unions to go federal if they so choose. This will let them open branches outside their home province. But if they do so, they have to sign onto CDIC and that will limit your deposit insurance to $100K.
12:40 pm
I have dealt with Outlook in the past and had early redeemed a GIC where the penalty was over half of my interest rate return...which I vowed I'd never do that again! I personally don't see an issue with non-early redeemable GICs if you effectively ladder your portfolio and maintain enough cash in other instruments or variable savings.
While I am not sure about Maxa, nor the credit union IT systems, however, I do know that Achieva has their account opening fully automated via the Web and I have used their Online banking to purchase my RSP, TFSA & GIC for years --- it is far from spartan (Outlook does not have these features).
3:25 am
Wow! The response to my inquiry is overwhelming. I am very impressed with the knowledge and sharing shown by all of you! Thanks so much.
I am very confident in Achieva and got in at 4% just before the fall to 3.75 and just saw it dropped again. Whew!
I needed to have some other positives about the credit unions as I rely on my interest income to live so this is good news. The banks can go jump in the proverbial lake, they don't care about us baby boomers who need income to survive, some of don't have cushy government or company pensions.
So thanks everyone, I feel very confident and satisfied with my decision to invest with Achieva and will take a look at the others such as Outlook. I will not go with Ally, their ads on TV make me sick and I won't support them.
This forum is amazing and I am glad to find other Canadians who are savvy and caring about their savings and helping others.
RS :smile:::smile:
8:38 pm
Good decision, Achieva is great to deal with and have among the best interest rates all the time ---Outlook has had a much lower savings rate for over four months and does not have the online functionality Achieva has. All with a 100% deposit guarantee!
While I'm not a great fan of Ally's commercial, I am more concerned with the fact they are backed by Resmore Trust, which was/is a division of GM with only CDIC coverage.
1:36 pm
October 5, 2009
Offline
I checked out Ally; and unlike my Manitoba Credit Union Accounts, you cannot write cheques on an Ally account. All transfers must be done electronically. As reported by someone else here, their electronic transfer system is plagued with problems. I prefer to transfer $$$ by cheque, which can make $$$ immediately available in my TD chequing account, without having to check for a few days to see if the transfer has actually taken place.
2:42 pm
i've never had a problem transferring $ to and from ally. works flawlessly for me.
2:40 pm
November 8, 2009
Offline
I have been a user at ally for almost a year now and have had no problems transferring money. I still think the website as compared to ing or others needs work. I always get a security warning when I got to the login page. Plus info tends to be hard to find. But 2% is still hard to find on savings so I will deal with it
1:43 am
Their transfers are offline from 11:30 PM EST into the early morning hours and transfers can not be processed during these periods.
11:18 pm
Jim said:
About the only downside I see to Achieva is that if you buy GICs from them your money is locked in for the term, with no early cash out option. MAXA and Outlook have early cash out of GICs in case you really really really need early access to your money.
I think all of the Manitoba credit unions use the same online web banking "engine" which is quite spartan. For example, MAXA has no way to just buy a GIC via online banking like you can with ING or Ally or Can Tire Financial from your high interest savings account. You need to fax in a form to their toll-free number (or snail mail it). It's a bit inconvenient.
It doesn't matter that they don't have electronic funds transfer to external accounts on their spartan online banking websites. Why? Because they are true chequing accounts. That means that you can link to them from accounts such as ING (send in a void cheque) or Ally (the most convenient due to their test deposit system, no cheque required). Watch out for fees though. Transfering from the Manitoba credit union account is the same as writing a cheque on that account.
Hope this helps. Another point is that federal legislation is about to allow Canadian credit unions to go federal if they so choose. This will let them open branches outside their home province. But if they do so, they have to sign onto CDIC and that will limit your deposit insurance to $100K.
I deal with Outlook Financial and find that their online effort is truly crappy as you have mentioned. There is no receipt in paper or online that actually shows that you have a joint GIC.... although it shows that you have a GIC.
Be careful of the Maxa early redemption...their penalty can affect your principal where as Outlook does not. I am splitting my GICs with Outlook and Accelerate....some redeemable and some not.
10:19 pm
November 8, 2009
Offline
I got 4% on a 5 year GIC from ally recently. early withdrawal is possible but you lose some of the interest.
2:34 pm
That 4% Ally GIC is actually 4.08% due to them compounding interest daily in their calculations.
Please write your comments in the forum.