Yields shabby of guaranteed investments

Des rendements minables de placements garantis

In this time of war against the COVID-19, major financial institutions do not pay a puny return on the cash that individuals and businesses are “hanging out” in their bank accounts.

When I say rickety, I mean in terms of one-hundredths of 1 percent, of the genus 0.01 to 0.05 %. On a bank deposit of 1000 $, that gives an income ranging from 10 to 50 cents. For the new year ! If the money lying around in a checking account, be aware that it does nothing.

In the category of term deposits (such as certificates guaranteed), the institutions show a little more ” generous “, the return offered climbing, this time in the tenths of 1 percent !

For a fixed-term of one year, the large canadian banks and Desjardins to provide you with a yield of 0.5 to 0.65 %. Concretely, this will pay off a year in investment income from $ 5 to $ 6.50 per $ 1,000. Taxable furthermore, if the placement is outside an RRSP or TFSA.

Bank deposits

According to the most recent data (2019) of the Institut de la statistique du Québec, Québec (individuals, businesses, etc) held in bank deposits (sight and term) for a value of up to 414 billion, of which $ 137 billion in the caisses Desjardins and 277 billion in canadian chartered banks.

In the country as a whole, the value of bank deposits of the Canadians amounted to 2063 billion. To this amount, it is necessary to add at least $ 300 billion of additional repositories, which are found in the caisses Desjardins and the Credit Union of the provinces of the West.

Gluttony bank

To justify the low performance that they offer on savings to customers, the banking institutions have, of course, beautiful game this time, since the key rate of the Bank of Canada is at its lowest level of 0.25 %.

However, this does not prevent them from continuing to charge interest of up to 20 % on credit card balances of their customers. Or 10% to 15% on personal loans.

A profit margin between the rates offered on customer deposits and the rate they charge on loans and credit cards.

Placements Québec

The bonds offered by Épargne Placements Québec are they more likely to ” pay ” the guaranteed investment certificates (GIC) of the banks and of the caisses Desjardins ?

Just a small bit. The obligation of fixed rate one-year reports 0.85 per cent. It is, therefore, to say 8,50 $ income annual interest per $ 1,000 investment. Or $ 85 income $ 10,000 savings !

The solution ?

To get a yield even the slightest bit of drinking on investments without risks, it is necessary to invest their savings in “Credit Union” of Western canada.

Investors in quebec, the take for told ! This is their only chance to collect an interest income, which looks great by the time that run.

A few examples of Credit Union ? For a guaranteed investment with a term of one year, Accelerate Financial offers 2 %, Implicity Financial At 1.9 %, Achieva Financial At 1.9 %, Outlook Financial 1.9 %, Of Cambrian to 1.8 %. I invite you to visit their websites.

And important fact to remember : all of the sums invested in investments of the Credit Union is guaranteed, compared to the limit of $ 100,000 in the financial institutions covered by the deposit insurance Corporation of Canada, or the deposit insurance fund of the Autorité des marchés financiers.

Given the generalized weakness of investment returns without risk, it is necessary to focus on the short-term.

One of these days, the rate will go back up…


Category Banks Caisses Desjardins Total
1. Individuals
Demand deposits 69,8 51,8 121,6
Term deposits 71,3 53,8 125,1
2. Other deposits 135,4 31,7 167,1
Total 276,5 137,3 413,8



Category In $ billions
1. Individuals
Demand deposits 676,2
Term deposit 405,6
2. Other (business, etc) 981,3
Total deposits 2063,1
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