Credit Union Term Deposits
The Cumberland Credit Union has one type of TERM DEPOSIT with maturities from one to five years. As with most TERM DEPOSITS ( or GICs as they are often called) the longer the term to maturity the higher the interest rate. With interest rates at their lowest point in several years, members are advised to keep their maturity short. Interest rates are not expected to rise in the near future ( 12 to 18 months) so TERM DEPOSIT maturities that range within 1 to 2 years are a fairly safe bet.
A question often arises "What if I need my money before maturity". Should this happen members have a few choices: Cash in and pay a penalty or use the TERM DEPOSIT as collateral against a short term loan or line of credit. The Credit Union staff can work out what is the best option for you prior to you making a decision.
TERM DEPOSITS can pay interest monthly, annually, or you can have the interest compound back
into your TERM DEPOSIT and earn even more interest.
For more information see the Revenue Canada link below.
