Thursday, September 18, 2008

And the safest place to place your money is....

....any credit union in Alberta. Of course, the one that's backed by the Credit Union Deposit Guarantee Corporation.

Despite the innocent appearances, what’s going on in the hidden balance sheets of the Big 5 and other Canadian banks is all unknown. We didn’t know anything was wrong with the Canadian banks last year until the ABCP fiasco emerged. We won’t know the implications of the CDS contracts the Canadian banks have written until a big counter party blows up.
So it’s better to be safe than sorry and rather than chasing a 100 basis points yield advantage by picking up your bank, it makes more sense to move to a safer place.
That safe haven is the Credit Unions of Alberta.
They will insure all your deposits, yes there’s no $100k limit as imposed by CDIC. And if you want to diversify into US Dollars, that is covered as well in the insurance.
Of course, the Alberta Credit Union Deposit Insurance is backed by the Alberta Government.

From the site:

Is this guarantee the same as the banks' $100,000 insurance?

This guarantee is more extensive than the banks' insurance. All deposit amounts are fully guaranteed and include accrued interest to the date of payout. Deposit amounts include chequing and savings accounts, RRSP deposits, RRIF deposits, foreign currency deposits, and term deposits, including those with terms exceeding five years.

So I’m moving pretty much all of my US Dollars savings from TD to ATB.
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