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Hubert - Less than Personal?
March 24, 2015
6:50 pm
Loonie
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No limits, though, at Hubert.

March 24, 2015
7:05 pm
kanaka
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Loonie said

No limits, though, at Hubert.

Yes, but then CDIC limit must have some meaning unless it is outdated so I will use it as MY guideline.

March 25, 2015
12:25 am
Loonie
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This is the way I look at it:

It seems to me that what really matters is how much in total is insured versus the ability of the insurance scheme to cover it.
The system for finding that out seems to me to be equally difficult to understand, whether it's CDiC or MB Deposit Insurance. I assume, based on what others have revealed in earlier threads, that MB has covered its deposits at least as well as CDIC has covered its.
CDIC only intends to cover 100,000 per person per type of account (generally speaking), whereas MB CUs say they cover all deposits. CDIC can therefore get away with having less in reserves relative to total of all deposits.
So, I ask myself, what is the difference between 100,000 covered 100% at bank A and 200,000 covered 100% at CU B. And I don't perceive a difference.
Whether there's a million dollars on deposit owned by 10 people or 1 person doesn't really make a difference in terms of how it is covered by the MB insurance, from what I can see. It's all about the ratio between the deposits insured and the ability to cover them, not the number of people who have made the deposits.
It's like any kind of insurance, to me. If two people with identical demographics each buy $100,000 life insurance policies, that should cost the same as a policy for one person for $200,000 (not including any additional admin costs).

I respect other people's right to come to different conclusions.
It may be that I'm missing something, but, so far, I haven't figured out what it is.

March 25, 2015
3:25 pm
Brimleychen
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I would say there is no such thing unlimited guarantee. So it always is a good idea to diversify. My general feedback with Hubert is good. There are more responsive than big banks. I really like the rates on saving and convenience to transfer money.

March 25, 2015
7:30 pm
Loonie
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In the end, the money that is available for reimbursement will have to be divided proportionally amongst all depositors according to the value of their insured deposits.

Any kind of insurance holds reserves at a proportion of its total obligations, whatever they may be, and that proportion is regulated.

Diversification could help protect you if there is not enough money to reimburse all insured deposits, but if it comes to that there are probably very heavy clouds on the horizon and it might not matter where else you have your money.

March 25, 2015
10:45 pm
Norman1
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kanaka said

Loonie said

No limits, though, at Hubert.

Yes, but then CDIC limit must have some meaning unless it is outdated so I will use it as MY guideline.

The CDIC limit does not have any meaning with Hubert Financial. Hubert is not a CDIC member.

Deposits in Manitoba credit unions, like Sunova Credit Union Limited (which Hubert is a division of), are insured by the Deposit Guarantee Corporation of Manitoba (DGCM).

Deposit insurance coverage is kind of arbitrary. CDIC insures Canadian dollar deposits only with a term no more than five years. DGCM insures all deposits, including those in a foreign currency or with terms exceeding five years.

March 25, 2015
10:56 pm
Norman1
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Loonie said
...
The system for finding that out seems to me to be equally difficult to understand, whether it's CDiC or MB Deposit Insurance. I assume, based on what others have revealed in earlier threads, that MB has covered its deposits at least as well as CDIC has covered its.
CDIC only intends to cover 100,000 per person per type of account (generally speaking), whereas MB CUs say they cover all deposits. CDIC can therefore get away with having less in reserves relative to total of all deposits.
....

I dug up some numbers about the CDIC and DGCM guarantee funds last year in the thread GIC's and Safety.

March 26, 2015
3:38 pm
JustMe
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kanaka said

JustMe said

Thank you for asking. I mailed application and cheque to set up account. They open account as soon as receive application and I expect that to be on Friday 27.03.
Now it is race against time; if they still have 1 year GIC promo next Monday rep promised to keep rate for me if it goes down before I move $.
If not, I might still move some $ at their saving is the same as Accelerate... not to have everything at one institution.

I think you will get the rate. I usually email and get the commitment in black and white. I moved a large sum of funds to an RRSP account from another credit union. I already had an account with them. They asked me to set up an RRSP account and start the GIC which I did. I couriered the account info to them. It took sooooo long, it seemed, for other credit union to send the the funds but it all worked out and I got the 2.95% rate.

Oaken also did the same for me...held the rate.

Did both at the same time....no rate changes with Hubert but two changes with Oaken. Both are a pleasure to deal with.

Good idea to not keep all your eggs in one basket. I try to put no more than 90,000 including interest at maturity in any account type. But will cause extra work for me to manage RRIF funds.

90,000 does not play any role with CU. Your $ is protected by the province.

March 26, 2015
3:49 pm
kanaka
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Yes I realise ...no limit.... But not covered by the Manitoba Government. http://depositguarantee.mb.ca/faq/

March 26, 2015
4:11 pm
NorthernRaven
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kanaka said

Yes I realise ...no limit.... But not covered by the Manitoba Government. http://depositguarantee.mb.ca/faq/

NO provincial deposit guarantee corp (except arguably Alberta) is fully backed by its province - Manitoba (and Sask) are just more up front about it.

For the $100,000 CDIC limit, the big federal banks would have lots of giant corporate (and perhaps some wealthy personal) deposits, and insurance premiums on these would be an extra cost for the banks for little gain, since they are going to be considered the next best thing to default-proof anyway. Provincial CUs aren't going to have anywhere near the same amount of deposits over a limit, so insuring 100% is probably a much cheaper proposition.

For fund ratios, CDIC in effect just needs enough to cover bad things happening to small/medium instititions. If the big boys develop doomsday equity holes you are looking more at supporting/recapitalizing the system, not individual banks. Nonetheless, CDIC is working to take their fund from the current level of around 40 basis points to 100+ over the next decade or so.

March 26, 2015
6:52 pm
Yatti420
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I like Hubert.. No issues here..

New top 100 credit unions/facts here..
http://www.cucentral.ca/SitePa.....gures.aspx

March 30, 2015
4:37 pm
JustMe
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Sent paper docs + cheque on Tuesday; Hubert received mailing on Monday and opened account right away; sent e-mail with client number. I have no idea why they asked in forms to write all those passwords when only mine - for temporary internet access worked? And it was not temp - I had to go and manually change it to my likings. Minor thing.
Linked 3 external accounts right away. Easy! Chatting on-line with rep., she advised that I do not have to transfer $ to savings account AND then buy GIC but can transfer $ directly to GIC. Neat. Have to wait few more days to see how that works. Rep advised that current offer of 1y GIC (2.35% average) will be available 'for a longer while'...

March 30, 2015
7:34 pm
frizun
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Hubert has a 4 day hold on transferred funds.
So if you transfer money to your savings account,it would need to sit there a few day before funding
a GIC.
Transferring directly to a GIC bypasses that problem.

April 2, 2015
6:16 pm
JustMe
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I found Huber has really friendly and understanding reps. Answer all questions, help you patiently at each step. I prefer online chat as it gives you time to think and then reply or ask another question.
If you do deposit until 16:00 it goes into your account same day.
Thank you 'frizun' for tip. I did just that as you advised.

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