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Email this12:11 am
October 21, 2013
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These are 5-yr issues. They guarantee 4% in the first year, the rest less clear.
A major hitch is that you can't necessarily redeem them after the 5 years. You have to have permission, and there are limits on how many they will redeem at a time. Otherwise you have to reinvest.
I'm not too keen on this, from what I can see.
Seems to me you'd be better off with quality dividend-producing shares, especially if in ETF, as it's fairly likely that you can expect to have something left after 5 years, and the annual returns are probably similar. There is no guarantee with any kind of equity share, but Luminus is a fairly small CU, and I have no idea whether they'll still be around when they might get around to letting me redeem.
https://www.luminusfinancial.com/Personal/ProductsAndServices/Investing/InvestmentShares/
12:35 am
July 10, 2011
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There's restrictions and higher minimums for these shares with the same general redemption rules as other credit unions.. First year is guaranteed 4% but you can get approx that at Hubert for example with less hassle.. After the first year at luminus its up to the board what rate will be.
I purchase a few shares of my current CU when I'm bored and only have a few $ not earning interest in the account etc.. Each CU has slight changes in rules etc..
Redemption when you close all accounts shouldn't be an issue for small amounts.. If I'll be a separate cheque I'm assuming.. Will take a few months probably..
I would compare features/return of the non voting shares vs voting for main differences if I was luminus customer..
12:51 pm
October 21, 2013
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Thanks for your input, Yatti420.
In view of other news received today from Luminus, which illuminates (pun intended) their business practices, I am now sure I would not touch these particular equity shares with a ten foot pole.
https://www.highinterestsavings.ca/forum/gic/something-to-be-aware-of-with-odd-month-gics/page-2/ post #22
12:55 am
August 9, 2014
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4% really isn't that attractive, the CU I use are able to give me 10% return for 2013 and 7.5% return for 2014. moreover, they also allow redemption anytime I want. Although I realize they have been increasing fees to pay for that lately as interest difference between deposit and loan rate reduce, but I still benefit cause I don't use many pay service 
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