Lighthouse Credit Union | Page 2 | Your stories | Discussion forum

AltaRed said
I do not know of any brokerage, DIY or otherwise, that would carry GICs from issuers that are NOT CDIC insured, and not I think, nationally available. There could be exceptions but I've not seen them in the big bank brokerages.  

And, by extension, brokers would also offer Provincially covered Credit Union GIC's that are covered by their respective jurisdictions as opposed to Federal CDIC coverage.

Stephen

BMO InvestorLine is currently offering GIC's from provincial Vancouver City Savings Credit Union:

VANCITY*** 1 year 3.400%
VANCITY*** 2 years 3.250%
VANCITY*** 3 years 3.300%
VANCITY*** 4 years 3.350%
VANCITY*** 5 years 3.400%

*** Vancity GICs are not eligible for deposit insurance coverage by the Canada Deposit Insurance Corporation (CDIC) but they are 100% guaranteed by the Credit Union Deposit Insurance Corporation of British Columbia.

It is not a question of CDIC coverage. It is a question of whether or not the GIC issuer can handle the amount of deposits that a dealer like BMO InvestorLine, BMO Nesbitt, RBC Dominion Securities, or RBC Direct Investing can raise before the rate can be yanked at the end of the day.

A small credit union, like Lighthouse CU, with a current loan book of $200 million, wouldn't be able to handle another $100 million or $200 million coming their way in a day or two. Such issuers would work with a smaller dealer, like a local deposit broker.