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Email this5:41 pm
December 12, 2009
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Wow, that's not a bad yield, actually. 
Would you mind posting that PDF online somewhere? Or, e-mail it to me:
http://www.google.com/recaptch.....WF5N3WmiE=
Cheers,
Doug
5:50 pm
July 13, 2011
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Hi Doug,
I e-mailed you the pdf and the e-mail from Hubert that states the dividend. I am not sure how to link the pdf to this forum.
Jenna
6:21 pm
August 4, 2010
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There's some info on Sunova shares (which I assume is what these are) on this page:
https://www.sunovacu.ca/home/personal/banking/member_share_program/
Looks like it is a minimum $25 buy-in (5 common shares), and a minimum $2.50 per month (half a share) after that, at least until you hit $1000. Common share dividends (that 5.65% number) are paid out in "surplus shares", not cash. I can't tell if the surplus share dividend was paid out in cash or more surplus shares, but most likely the latter (that's how Assiniboine CU did it, for instance). It is possible you'd need approval (or close your accounts) to redeem your shares, although some CUs may do partial conversions to cash each year depending on their finances. Sunova shares, at least, are not RRSP eligible, and Assiniboine indicates their dividends are taxed as interest, not the more favorable dividend rate, so check the tax implications.
6:48 pm
July 13, 2011
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NorthernRaven,
Thanks for pointing this out, as it is definitely worth clarifying. To me, it would not be appealing to be paid in surplus shares in lieu of cash.
I wonder if Sunova and Hubert are carrying out their stock plans in the same manner? For example, Sunova has an initial investment of $25 or $40 (unless you are a student or under 18 years old), whereas Hubert's initial investment is only $5.
7:32 pm
August 4, 2010
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Hubert is simply a division of Sunova, and the $5 is most likely just a Sunova share. There is likely a regulation that limits CUs to providing services only to members, and for online Hubert (as opposed to bricks-and-mortar Sunova) customers they just require the nominal single share.
8:15 pm
December 12, 2009
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You can me a Hubert member with only one $5 share. That's all you need to buy.
Cheers,
Doug
8:46 pm
August 4, 2010
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The Hubert Share Agreement mentions a minimum $500 level for excess redemption (instead of the Sunova $1000), but there is no indication of whether these are Sunova shares or separate Hubert ones. Even if they are labelled Hubert, I suspect that for all intents and purposes they would effectively be Sunova shares. Hubert is just a deposit-taking arm, and I can't imagine what they'd base a separate dividend calculation on.
Jenna, if you'd like to mail that package to me, I'm sort of curious now. The address is
info (at) northernraven.ca
4:17 am
July 13, 2011
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NorthernRaven, I e-mailed you the document. It is more of a synopsis and is not very detailed.
Jenna
10:50 am
July 13, 2011
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So, here is the word from Hubert regarding dividend payout (from their e-mail to me today):
"Dividends are paid as Surplus shares to a Surplus account under your member #. You will see this account on your monthly online statement. Until your Shares and Surplus Share combined, are over $500 you are not allowed to withdraw any Shares. However, if you choose to close your account these are paid back to you, as long as the account has been open longer than 12 months."
6:49 pm
December 12, 2009
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NorthernRaven, I can confirm they are shares in Sunova Credit Union. They could be a slightly different class of share hence the different redemption level or something minor. However, they are definitely Sunova shares with full voting and dividend privileges.
Cheers,
Doug
3:56 am
July 13, 2011
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Doug, can you clarify what you mean by "dividend privileges"? I find it unusual that Hubert pays dividends with surplus shares in lieu of cash. I also find it different than the norm that you must accrue $500 in stocks before being able to cash out...and that is subject to the Board of Directors?
I am brand new to Credit Unions, though. I am in Ontario where CUs are not as popular. Perhaps this is a CU thing?
9:33 am
Anyone got any new update about their account? Are we all waiting for our application to process?
9:43 am
July 13, 2011
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Not yet, I am still at the stage where they may or may not have yet received the initial cheque.
2:03 pm
August 4, 2010
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Jenna - credit unions are designed for member participation and stuff like that. Investing in them is part of their long-term equity, and not designed for quick in-an-out return investing.
My account is up and running, and I've linked it to a couple of other accounts successfully. They have a very clumsy transfer-out system, where you actually have to type in the bank/transit/account number of the destination EACh time. While this does let you apparently transfer money to a non-linked account (a friend or relative, perhaps), you also have to make sure you have the right info and don't make a typo. I'm not sure why they don't have your linked accounts in a popup menu, and only ask for actual number if you choose "Other".
2:24 pm
July 13, 2011
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NorthernRaven,
Wow, that is just shocking about the transfer system. I wonder why they are not able to "remember" common account information? There is so much room for user error.
2:40 pm
August 4, 2010
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There's no problem with transfer in (all on popups menus), just the target account on transfer-out. It could be a subtle way of making transfers a bit more difficult, but given the customer service woes that seems a bit unlikely. It may just be really bad programming design. Being able to transfer to arbitrary accounts is potentially an intriguing feature (send money to someone without having to do the Interac thing), but since most transfers will be to oneself, it is somewhat boggling that this isn't easier. When I get back to civilization I'm tempted to write up a couple of these and send them along to Hubert.
4:16 pm
Hey all,
I thought I would provide an update.. Canada Post must be on overdrive cause my cheque arrived pretty quickly! Account was setup in 3-4 days tops.. I had an account up by end of last week.. Transfer started on monday.. Be wary there will be a hold on your cheques.. Mine was for $6.. The transfer from my chequing acct seems to be finished as of now.. I am wondering how Hubert initiates this transaction as I don't want to be charged on my bank end.. Interface is simple and there is no need to setup your account as it is done for you when your cheque arrives at the Hubert dept.. So it is easy to withdraw funds from your chequing acct.. However when redeeming I believe you will have to input account info manually for now.. Online statements avail.. Trans history.. SMS acct info/history.. Downloadable transaction.. Either way its real simple for the average user and you get a half decent rate... Don't really care about the share program atm.. I like Sunova overall.. They take a different approach and that's what counts.. The only concern I have about the crappy member account numbers and poor password minimums.. They will be receiving an email shortly from me regarding that.. Overall.. Seems to be fast and efficient.. Aslong as it doesnt take a week to move money i'm happy.. Simple account Decent Rate
11:22 pm
December 12, 2009
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Jenna said:
Doug, can you clarify what you mean by "dividend privileges"? I find it unusual that Hubert pays dividends with surplus shares in lieu of cash. I also find it different than the norm that you must accrue $500 in stocks before being able to cash out...and that is subject to the Board of Directors?
I am brand new to Credit Unions, though. I am in Ontario where CUs are not as popular. Perhaps this is a CU thing?
I don't know that this is standard among all credit unions, but given that the shares seemingly do not fluctuate in value, I have no issues with earning dividends in shares as when I cash out, I will still have incurred a gain. It's too bad, as you suggest, that you do not earn the dividend tax credit; however, that causes problems for older folks with OAS clawbacks and such apparently. It'd be really nice if you could hold the shares in a TFSA share account!
Cheers,
Doug
11:28 pm
December 12, 2009
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Jenna and NorthernRaven,
I sent my initial deposit cheque, which also acts is your account signature card, to Hubert on July 8th and they received my cheque, deposited it and opened the account June 13th. I thought that was really fast - especially given the backlog in the postal service from the labour dispute and subsequent company-imposed lockout. To get from southern B.C. to Selkirk, MB, I was quite impressed actually. Cheque hold comes off today and are normally held five-business-days, but apparently there is no holds on EFT deposits - whether transfers in are done from within Hubert or from your external FI's online banking - very classy!
The user interface is super simple, very plain vanilla but easy to use and loads fast. PDF statements are generated on the 3rd of the month for all accountholders and the statement date remains the same even when you open subsequent accounts. I have a follow-up e-mail in to Hubert to see if the statement date can be changed upon request.
A few typos here and there and I made a few minor suggestions. They've forwarded them on - will keep you posted!
Cheers,
Doug
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