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Manitoba Credit Unions - Best, Better, So So - VS Oaken or Peoples Trust
August 20, 2014
1:31 pm
kanaka
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So right now I have accounts at:

Outlook Financial - So So as they continue to treat me good but a high percentage of my transactions are bungled leaving me to have to follow up and I plan to phase them out when my CIC's mature.

Hubert - The jury is still out on them. They are often the leader in rates for specific year terms but they adjust rates more often than others so if you are in a renewal position you "may want to chase down better rates" and move your funds and more implications if a TFSA. I don't like the way to input a GIC and not to have the ability to review to make corrections but I can get over that.

Implicity - The jury is still out on them. Just have applied and seems to be lengthy but they have kept me up to date.

Accelerate - Best and Fantastic, I have absolutely no issues!!

So today I have to begin the phase out plan from Outlook Financial and I also received a letter from Accelerate for an upcoming GIC about to mature. So the majority of TFSA GIC's I have are with Outlook Financial and a few with Accelerate. And if I am going to use multiple financial institutions that are winners I am thinking about having all GIC TFSA's in one institution.

I have an RRSP account with Oaken but will have to keep only some of my RRSP there as to not go over 100K with interest. I have stayed away from Peoples Trust because of all the trust companies that have gone bad over my years. But they are CDIC insured so maybe I need a better blend of CDIC and Manitoba DGCM. I don't want to be a rate chaser but I do know for sure all listed above will provide better rates that what Manulife will provide for me. I have found Oakens service to be excellent!! And have not dealt with Peoples.

So just a few questions - mainly for the purpose of investing and not day to day banking:

Of you folks using a Manitoba CU...which one is your favourite and why.

If I was to put all my TFSA funds in the Peoples Savings account at 3% would I make the same or more than a 3% GIC?

Of you folks using Peoples Trust...what are your thoughts?

August 20, 2014
1:35 pm
Loonie
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I have no problem with Peoples Trust, and I do have money there. It's called "Peoples Trust BANK", so it's not a trust company.

My sense is that they have been building their business slowly, carefully and intelligently, focusing first on TFSA savings rate which is high but does not lock them in. My guess is that they want to maintain that competitive advantage in the future and that they hope to ride out any interest fluctuations. (If you don't like Hubert for fluctuations, then Peoples ought to be for you.) Next, I noticed that they started gradually beefing up their one year rate so that it is one of the best available, focusing again on just one product with shorter term implications but more commitment. Both of these kinds of investments will appeal to younger investors, so it seems to me they are building for the future, steadily and surely. Their other rates are unremarkable but acceptable to lots of people. And, best, they are not, as far as I can see, wasting mammoth amounts of money on advertising, as is Oaken, for instance with their full page coloured newspaper ads and so on. We need to remember that the money for their advertising comes from us, in the end.

You would do better with Peoples for the TFSA if the rate remains unchanged because the Peoples account is a savings account so that the interest is compounded monthly, whereas the GIC would be compounded annually. Someone who uses Excel can probably figure this out exactly.

August 20, 2014
2:00 pm
Jack Manning
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Loonie, good point about monthly compounded interest of their annual 3.00% TFSA savings account rate. The main question about Peoples Trust's 3.00% TFSA savings account is what will happen.

The last 18 months that I can remember their 3.00% TFSA variable savings rate is unchanged.

Maybe on this forum or from some other source that how long their 3.00% TFSA variable savings account rate is the same and what was it before the 3.00% rate was introduced?

I think that they can keep their TFSA savings account rate at 3.00% because there is a limit of $5,500 a year per person and a maximum $31,000 without any interest included that can be put in them.

Maybe once Peoples Trust has much more TFSA deposits then they may lower the rate unless rates are much higher by then.

As for Manitoba credit unions, I do not have any money in them but maybe in the next 3 to 6 months I will have to find a higher rate alternative because like you Kanaka, I do no want to go above $100,000 CDIC limit.

August 20, 2014
2:10 pm
Jack Manning
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Another Canadian financial institution that has a higher rate for TFSA's is State Bank of India Canada. In their case, it is their 3, 4 year TFSA GIC is 2.55% and their 5 year TFSA GIC is 2.85%.

I believe ICICI Bank of Canada also has a higher TFSA GIC rate of 3.00% for 5 year money. The main benefit with them is the rate is fixed for 5 years but the downside is if you redeem it before, you will only get 0.75% which is peanuts.

August 20, 2014
2:16 pm
Loonie
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Someone, on another thread, said once that Peoples had held this 3.0 savings TFSA rate since inception. I can't verify that personally.

August 20, 2014
2:37 pm
kanaka
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Loonie said

I have no problem with Peoples Trust, and I do have money there. It's called "Peoples Trust BANK", so it's not a trust company.

My sense is that they have been building their business slowly, carefully and intelligently, focusing first on TFSA savings rate which is high but does not lock them in. My guess is that they want to maintain that competitive advantage in the future and that they hope to ride out any interest fluctuations. (If you don't like Hubert for fluctuations, then Peoples ought to be for you.) Next, I noticed that they started gradually beefing up their one year rate so that it is one of the best available, focusing again on just one product with shorter term implications but more commitment. Both of these kinds of investments will appeal to younger investors, so it seems to me they are building for the future, steadily and surely. Their other rates are unremarkable but acceptable to lots of people. And, best, they are not, as far as I can see, wasting mammoth amounts of money on advertising, as is Oaken, for instance with their full page coloured newspaper ads and so on. We need to remember that the money for their advertising comes from us, in the end.

You would do better with Peoples for the TFSA if the rate remains unchanged because the Peoples account is a savings account so that the interest is compounded monthly, whereas the GIC would be compounded annually. Someone who uses Excel can probably figure this out exactly.

I see it only being called Peoples Trust Company.....not splitting hairs here as Oaken Financial is not called a Bank either and is backed by Home Trust.

August 20, 2014
2:42 pm
kanaka
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Loonie said

Someone, on another thread, said once that Peoples had held this 3.0 savings TFSA rate since inception. I can't verify that personally.

Click on the 3% and you will see what dates and %'s of any change...in this case, none. https://www.highinterestsavings.ca/chart/

August 20, 2014
3:30 pm
Loonie
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kanaka said

<I see it only being called Peoples Trust Company.....not spitting hairs here as Oaken Financial is not called a Bank either and is backed by Home Trust.

You're right. My mistake. I wonder why I thought that.

August 20, 2014
4:44 pm
Jack Manning
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Loonie and Kanaka, at least Peoples Trust has been offering their 3.00% TFSA savings account rate for more than 5 years now and is available to most if not all Canadians.

I was wondering if there is a possible higher TFSA savings account rate than 3.00% and I found one searching the web at 3.15% from an Ontario credit union called The Energy Credit Union but the problem is it is only available to Toronto Hydro, T.T.C and other municipal employees and these types of retired employees in Ontario.

Peoples Trust Company is the best out there for us regular Canadians.

August 20, 2014
4:46 pm
bb123
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I was looking for a place to put my money and settled on Implicity. I have not been disappointed. For various reasons, I ranked Implicity first, followed by Accelerate, then Outlook and Achieva. I didn't like Hubert because there was no predictability on rates. Sometimes they're the best, some times not even close. Implicity has only been around since December 2012 but their GIC rates have always been top of market (except when the odd time limited special is offered by others) and their Savings rate has also been consistently at the top. Accelerate Savings is 5 basis points higher at the moment but they just raised it about a month ago. Out of all the MB CU's, Implicity is the only one that I'm aware of with Me-to-Me which allows easy movement of funds. And almost everything is free. At least everything I've ever done has been "fee free". sf-smile

August 20, 2014
6:41 pm
kanaka
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bb123 said

I was looking for a place to put my money and settled on Implicity. I have not been disappointed. For various reasons, I ranked Implicity first, followed by Accelerate, then Outlook and Achieva. I didn't like Hubert because there was no predictability on rates. Sometimes they're the best, some times not even close. Implicity has only been around since December 2012 but their GIC rates have always been top of market (except when the odd time limited special is offered by others) and their Savings rate has also been consistently at the top. Accelerate Savings is 5 basis points higher at the moment but they just raised it about a month ago. Out of all the MB CU's, Implicity is the only one that I'm aware of with Me-to-Me which allows easy movement of funds. And almost everything is free. At least everything I've ever done has been "fee free". sf-smile

Thank you....

August 20, 2014
6:41 pm
kanaka
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Thanks, everyone. I would appreciate any more thoughts too.

August 21, 2014
7:10 pm
Loonie
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Jack Manning said

Loonie and Kanaka, at least Peoples Trust has been offering their 3.00% TFSA savings account rate for more than 5 years now and is available to most if not all Canadians.

I was wondering if there is a possible higher TFSA savings account rate than 3.00% and I found one searching the web at 3.15% from an Ontario credit union called The Energy Credit Union but the problem is it is only available to Toronto Hydro, T.T.C and other municipal employees and these types of retired employees in Ontario.

Peoples Trust Company is the best out there for us regular Canadians.

Good deal with the Energy Credit Union, which I did not know about. Membership also extends to "individuals employed by any municipality as defined in the Municipal Act, 2001, individuals employed in any health care facility operating in the Province of Ontario and related persons or affiliated entities of the aforementioned." Appears to include retirees. Their application form requires 3 referees. How quaint!

August 21, 2014
7:27 pm
Loonie
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Kanaka, you might want to consider Achieva at some point. I have not dealt with them personally, but they have no transfer-out fees, and I know how committed you are to not paying fees.sf-wink Implicity and Accelerate both have $50 transfer-out fees.
I think Peoples also does not have exit fees.

February 3, 2016
4:23 pm
Saver-Mom
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So, now that People's trust is losing their edge, and given that as a Quebecer I can't access EQ, Zag etc, I am more keen to try a Manitoba CU. Does everyone who weighed in still have the same opinion? Prefernces cor Achieva, Implicity, Accelerate? Opinion on safety of Manitoba CUs in general? Plans to move away from People's? Am already in Oaken and like them despite their lack of daily interest registered accounts to park money.

February 3, 2016
8:02 pm
NorthernRaven
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The only one I've had an account with, Hubert, unfortunately has never shown any interest in becoming Quebec-eligible - the other five I think all are. The nice thing about Hubert is that you can easily link other savings accounts to them (they have the Tangerine-like method of inputting transit info and doing a "micro-deposit" test), and free transactions.

I think the rates on all MB CUs are effectively the same, aside from whatever occasional promotions on GIC rates there might be - not too many? They'll generally be the top of the "stable" market, and more likely to stay there than a for-profit bank which may have more incentive to slowly back away from those rates (like PT).

Other people can probably give details of the various online interfaces. Do you actually use HISAs for RRSP? Usually that room is better used for long-term equity investments, given the fees involved in transferring RRSP cash out of a brokerage account, and the fairly low returns from cash. And except for Hubert and Achiva, the MBs have a $50 RRSP transfer-out fee, which can eat into short-term yield.

There's various threads about provincial deposit guarantees. I don't try and convince people individually one way or another and everyone is responsible for their own peace of mind, but especially in the short term its hard to see a likely scenario for a provincial financial sector to collapse!

February 3, 2016
8:06 pm
Loonie
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I am OK with Hubert, but I think it doesn't serve QC. Accelerate has had good reviews too.
There were earlier threads which dealt with the viability of MB CUs, and are probably worth looking up. Most people seemed to feel their insurance was as reliable as CDIC, and some technical arguments were provided. The percentage of Manitobans who put their money into them is quite high, although I can't quote chapter and verse on that at this time.

While Peoples no longer distinguishes itself in rates, you might want to stay there if you're already there, due to the shortage of alternatives for Quebecois. The rates aren't any better in MB, although they have been more steady. Peoples, however, has a very "bare bones" way of doing things, and there is room for improvement.

One of the things I like about the credit unions is that they are far less likely to be involved in overseas dealings than the Big Banks. The latter have sometimes made some very poor judgment calls on these, which bothers me. They sometimes seem much more willing to take risks with overseas investments than they are with loanding to Canadians. Some would no doubt see this as a sign of diversification and strength, but it still makes me nervous.

February 3, 2016
8:47 pm
kanaka
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Wow, did I start this post? So long ago.sf-confused

I have no issues with:
Implicity......do non registered GICS only
Accelerate....do non registered GICS and TFSA for wife and I and plan to open RRSP accounts
Hubert.....do non registered GICS and have RRSP for me and plan to open TFSA accounts

Jury is still out:
Oaken....have RRSP and non registered......but no associated savings account...no place to park in between and doesn't allow decision time....or allow self managed RRIF withdrawal management........perhaps by their design???
PT.....have TFSA and non registered....transfer in money and then GIC purchase is far tooooo cumbersome....and their timely rate reduction makes one loose loyalty/faith
Outlook Financial....have had an overhaul of management but still poor customer service at times and with the number of errors in the past; I have very little left and will continue to depart in full.

February 4, 2016
7:48 am
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Loonie said

One of the things I like about the credit unions is that they are far less likely to be involved in overseas dealings than the Big Banks. The latter have sometimes made some very poor judgment calls on these, which bothers me. They sometimes seem much more willing to take risks with overseas investments than they are with loanding to Canadians. Some would no doubt see this as a sign of diversification and strength, but it still makes me nervous.

Do you really think that CUs investing and loaning to Canadians in Alberta and Saskatchewan is not somewhat risky these days - those economies are not in great shape and likely to get worse......

February 4, 2016
8:27 am
bb123
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In reference to Brian's comments about Alberta and Saskatchewan, from my understanding all Credit Unions are provincially regulated. So Manitoba credit unions wouldn't be exposed to anything that occurs in Alberta and Saskatchewan. I think they are pretty limited in their ability to invest in anything outside their province. Manitoba has a small area in the south west part of the province that has oil. Maxa is owned by Westoba Credit Union that operates around there so they may be affected to some extent. But I think all the other Manitoba Credit Unions are Winnipeg based (except Hubert) so I doubt that they have any exposure to the negative effects brought on by the price of oil.

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