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Steinbach Credit Union Savings Rates - Effective May 2, 2019
May 2, 2019
5:33 am
Top It Up
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The following rates are effective as of May 2, 2019 and are subject to change without notice.

Savings Rates

All deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba. Applies to Canadian deposits only. Some restrictions may apply. These rates were last updated on May 1, 2019.

Account Balance - Consumer Interest Rate

Regular Savings less than $100,000 - 2.55%
Regular Savings $100,000 - $250,000 - 2.65%
Regular Savings more than $250,000 - 2.85%

TFSA - 2.80%

Monthly Savings - 1.65%

PLAN 24 Account - 1.15%

FAT CAT Account (5-12) on 1st $1,000 - 4.15%
FAT CAT Account (5-12) more than $1,001 - 2.55%

Checking - 0.05%

https://www.scu.mb.ca/rates/savings-rates

May 2, 2019
8:25 am
gicjunkie
Ontario
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The savings rates are still pretty good BUT the interest payment terms are not.

Interest is calculated on minimum monthly balance.
Interest is paid annually.

This is why I stopped dealing with them.

May 2, 2019
8:32 am
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Yeah, I don't have a problem with any of that - the SCU account isn't my daily driver account it's my long-term parking account; I always remember to do deposits on the last day of a month and withdrawals on the first day of the month, if need be.

Hell, their > $250,000 HISA rate beats any current cash and matches any 1-year GIC offerings.

May 2, 2019
8:35 am
gicjunkie
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Top It Up said
Yeah, I don't have a problem with any of that - the SCU account isn't my daily driver account it's my long-term parking account.

Hell, their > $250,000 HISA rate beats any current cash and matches any 1-year GIC offerings.  

The important thing is that it works for you.

May 2, 2019
2:22 pm
Shawguy
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I have the savings account just so I can transfer funds over from other banks (aka accept e-transfers) and then Transfer to the TFSA savings account on a monthly basis (as I have not maxed out yet - no where near)

May 2, 2019
2:24 pm
Doug
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I note that Motive Financial's Savvy Savings Account offers 2.80% on all balances, I think, or at least up to $1 million. On that basis and the fact the interest is paid monthly, I'd argue this beats Steinbach's account any day. sf-cool

Cheers,
Doug

May 2, 2019
2:53 pm
Briguy
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Doug said
I note that Motive Financial's Savvy Savings Account offers 2.80% on all balances, I think, or at least up to $1 million. On that basis and the fact the interest is paid monthly, I'd argue this beats Steinbach's account any day. sf-cool

Cheers,
Doug  

Motive Financial is only 2.4% on TFSA, vs 2.8% for Steinbach, so best bet is to keep your TFSA in Steinbach and HISA in Motive at 2.8%.

May 2, 2019
3:32 pm
Doug
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Briguy said

Motive Financial is only 2.4% on TFSA, vs 2.8% for Steinbach, so best bet is to keep your TFSA in Steinbach and HISA in Motive at 2.8%.  

Is the TFSA savings account annual paid interest and that silly way of paying interest, though?

For what it's worth, I've never used a TFSA for a HISA (other than broker-held HISAs that trade through FundSERV at a discount brokerage) and don't plan to. I feel like it's a complete waste of a TFSA's potential.

It is a poorly named vehicle and the government made a major error in naming it. They should've called it either of: (a) TFIA (Tax-Free Investment Account); (b) TFA (Tax-Free Account); or, like the U.S., (c) IRA (Investment Retirement Account). (RRSPs are similar to 401ks while IRAs are similar to TFSAs. There are differences, obviously, but broadly speaking, those are their closest U.S. counterparts.)

Cheers,
Doug

May 2, 2019
4:13 pm
Briguy
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Doug said

Is the TFSA savings account annual paid interest and that silly way of paying interest

Cheers,
Doug  

Yes,
Interest calculated on minimum monthly balance
Interest paid annually

Thus, you need to deposit on 1rst day of month and withdraw on last day of month to get interest that month. So optimal way to transfer a TFSA from Steinbach to another FI is to transfer internally in Steinbach from their TFSA to a non registered account on Dec. 31, then transfer out to another FI anytime on Jan 1 or after.

May 2, 2019
4:16 pm
Briguy
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Doug said

For what it's worth, I've never used a TFSA for a HISA (other than broker-held HISAs that trade through FundSERV at a discount brokerage) and don't plan to. I feel like it's a complete waste of a TFSA's potential.

Cheers,
Doug  

If one needs to have their TFSA available at all times for expenses, then the stock market is not a great place to invest in since the market can be down when you need to sell. If you have the luxury to park the money, then I agree, stock market is good. However if you do a lot of trades within the TFSA , CRA will consider it to be a business and tax it.

May 2, 2019
4:44 pm
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The fact that often goes unnoticed about SCU is that it is a full service, bricks and mortar financial institution offering all the bells and whistles along with the highest posted HISA rates.

May 2, 2019
5:32 pm
Doug
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Briguy said

If one needs to have their TFSA available at all times for expenses, then the stock market is not a great place to invest in since the market can be down when you need to sell. If you have the luxury to park the money, then I agree, stock market is good. However if you do a lot of trades within the TFSA , CRA will consider it to be a business and tax it.  

"A lot of trades" would be multiple trades weekly. Someone placing one buy order, and occasional sell order, on a weekly or biweekly basis would be deemed to have been contributing as part of a regular investment plan, but it is hard to quantify and some clarity would be appreciated. It would be nice if government would have some backbone and order the CRA to issue a (further) interpretative bulletin on the matter. sf-cool

I won't re-hash the savings account versus investment account aspect, as I've made my point, but the point is, the tax savings on interest earned in a TFSA are minimal at best compared to the capital gains tax savings.

Cheers,
Doug

May 2, 2019
5:34 pm
Doug
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Top It Up said
The fact that often goes unnoticed about SCU is that it is a full service, bricks and mortar financial institution offering all the bells and whistles along with the highest posted HISA rates.  

That matters in the context of you living in Manitoba, though. Otherwise, it's effectively a virtual financial institution. 🙂

Cheers,
Doug

May 28, 2019
5:53 pm
meghan88
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Sooo ... I just tried opening an account with Steinbach and it looks like I need a member to refer me or reference to an ad?

Am I missing something? Any tricks to being able to join?

May 28, 2019
6:04 pm
Doug
British Columbia, Canada
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meghan88 said
Sooo ... I just tried opening an account with Steinbach and it looks like I need a member to refer me or reference to an ad?

Am I missing something? Any tricks to being able to join?  

I believe that ad you're seeing is a contest that you can enter if you subsequently refer a new member to Steinbach.

If you just want to join Steinbach, this is their membership opening application:

https://www.scu.mb.ca/join-scu

A word: their Regular Savings account rate is calculated daily on the lowest balance in a given month and then paid annually. For those reasons, it's not included in the comparison chart, but they do have a forum and a profile page where you can post your review of them (if you wish).

Hope that helps,
Doug

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