Credit unions offer the same wide range of accounts, products and services as other financial institutions. And in many cases, we offer lower fees and better interest rates than our competitors.
But best of all, if you have any type of account at a credit union, you may be eligible for profit sharing. That means when the credit union makes a profit, so does your family, in the form of common shares or dividends (basically, money back in your wallet).
No matter what product or service you need, a credit union can help you meet your financial dreams. It doesn’t matter how much money you have in your account or how many products you have, all credit union members are owners and shareholders, so we are accountable to you, not to some executive in Toronto. That’s the credit union difference.
If you need a new account but don’t know a RRSP from a RRIF from a TFSA, read on for some common types of credit union accounts and products:
- Savings accounts: there are various types of savings accounts, from regular to high interest to youth or student accounts. A savings account allows you to deposit and save money while earning interest, with varying interest rates depending on the type of account you have.
- Chequing accounts: these accounts allow you to manage day-to-day transactions, such as depositing funds, paying bills, making debit card purchases and withdrawing cash.
- Registered Retirement Savings Plan (RRSP) Accounts: RRSP accounts, which are designed to help you save for retirement, are typically long-term accounts that are locked-in, meaning you cannot access the funds without paying a penalty. Contributions to RRSP accounts are tax-deductible up to a limit per individual or family and the earnings grow tax-free until they are withdrawn.
- Registered Retirement Investment Account (RRIF): once you retire, your RRSP converts to a RRIF which is used to generate income from retirement savings while avoiding paying extra tax on withdrawals.
- Tax-Free Savings Accounts (TFSA): TFSA accounts allow you to save money and earn interest without paying taxes on the investment income or withdrawals.
- Loans and mortgage accounts: all credit unions provide various loan options, with competitive interest rates and flexible repayment terms, depending on what the loan is for. Some examples include:
- Personal loans
- Car loans
- Business loans
- Home loans
- Mortgages (learn more about the different types of mortgages available here)
- Credit accounts: credit accounts and credit card products include things like lines of credit (a type of credit account that remains open even as payments are made, allowing you to withdraw and payback as needed) and credit cards with different features and rewards programs (such as cash back to travel reward or low-fee cards).
- Business accounts: credit unions offer business banking services and related accounts such as business savings and chequing accounts, business loans or lines of credit and business credit cards.
- Investment accounts: credit unions offer many different types of investment accounts, such as Mutual Funds, Guaranteed Investment Certificates (GICs) and more (you can read more about five ways to get started investing here).