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Email this8:33 am
February 20, 2018
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What's safer having all your assets in a big bank like Td without full deposit insurance or having it spread out among some tiny Ontario dico insured credit unions each with assets under $20mill?
9:56 am
February 17, 2013
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Here's a thread for you:
Isn't there some sort of law that allows the big banks to raid your accounts if worse comes to worse? After all, they're "too big to fail". Doesn't have to be a "big bank" for CDIC coverage. Plenty of better options interest wise. Since I have an ultra-conservative, paranoid investing disorder, I max out all account options between myself and my wife so we have triple (mine, hers and joint accounts) CDIC coverage at Motive. Are you set on DICO coverage? With Ontario so dependent on manufacturing and exporting, DICO would be my last choice for coverage. I have it spread it around the country... BC, Alberta, Manitoba and Ontario. If (when) society collapses, it won't matter where you have your nest egg(s), we're all hooped.
10:33 am
February 24, 2015
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Not all assets are covered by CDIC, but I assume that's not what you are referring to. In today's digital age, there is really no reason to restrict yourself to one 'big bank'. For safety and/or diversifying, you probably want a brick and mortar FI, an online bank/CU with ATMs in your city, and another in a different province. That way you should always be able to pay bills, get cash, etc.
10:51 am
November 19, 2014
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Neither.
Deposit safe. Use protection.
10:26 pm
October 21, 2013
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I'd go for the small DICO CUs, all other factors being equal - which they may not be.
I like small banks too.
I figure they could be the canaries in the coal mine.
Realistically, though, your GICs are stuck until they mature, no matter where they are.
I invest in Ontario CUs because this is where I live. I think it would be a lot easier to get my money out of an FI in the province in which I live, if push came to shove - and easier for POAs and executors too. I have money in MB too because they offer some features I can't get here, including unlimited coverage.
Most, if not all, provincial economies are vulnerable to something-or-other. But Ontario is the largest; and when it falls, they will all suffer.
The Big Banks may or may not be safer, but I just can't bring myself to settle for such crappy rates. The main advantage of Big Banks, from what I can see, is that they have more international exposure - for better or worse, of course. If you truly believe they are safe, then you'd be better off buying their stock.
(Rick - I believe it was preferred shareholders who were going to be on the hook for bank defaults.)
The bigger the FI, the more varied risks it can afford to take, and some higher risks, but those risks, individually, forma a very small part of their business. It can be compared to the CPP, which invests in all kinds of things that I personally would find scary, but they are big enough that it only forms a small part of their portfolio, so it's OK for them, I guess. This is both good and bad.
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