Cashing CSBs

[bolthead]

I have a few CSBs, and I was wondering which would be best to cash, the older or newer. Also, is it the first of the month best to cash them, once interest has been added on? So in this case maybe September 2nd, after Labour Day. Thanks!

[pitz]

I have a few CSBs, and I was wondering which would be best to cash, the older or newer. Also, is it the first of the month best to cash them, once interest has been added on? So in this case maybe September 2nd, after Labour Day. Thanks!

Cash them all. The interest rate on CSB's is laughable and much less than you could easily obtain in an online savings account or a CDIC-insured GIC. There's no reason to own CSB's anymore, especially since, unlike in the past, they don't pay anything near a competitive rate of interest compared to the private sector.

First of the month works just fine.

[smihaila]

There's no reason to own CSB's anymore, especially since, unlike in the past, they don't pay anything near a competitive rate of interest compared to the private sector.


Some advantage in having them is that you get unlimited protection, being practically backed up by the Government itself :)

[83_gemini]

The CDIC is effectively the same thing.

[smihaila]

Not quite. CDIC offers guarantee for up to 100k per institution and per legal entity. Only the CSBs and the banks from the province of Manitoba can offer unlimited protection.

[dealtacular]

Not quite. CDIC offers guarantee for up to 100k per institution and per legal entity. Only the CSBs and the banks from the province of Manitoba can offer unlimited protection.

Investing >$100K in CSBs or GICs/savings accounts is usually not a good use of the money. You could just go to another institution.

[pitz]

Only the CSBs and the banks from the province of Manitoba can offer unlimited protection.

The credit union deposit insurance schemes can only offer protection to the extent that they have funds available.

Whereas CDIC has access to the taxation power of the government of Canada, and, of course, the printing presses.

[smihaila]

Whereas CDIC has access to the taxation power of the government of Canada, and, of course, the printing presses.

If the whole game were to collapse on a sudden, nothing would in fact be able to protect us. One thing is what's stipulated and the other what is gonna happen in a crisis. The greedy bankers will save their skin first and the "rest of us" left away :) We'll come back to the "who's the strongest" and primitive forces.

[Lyrrad0]

Well, there's a $500,000 limit on CSB's so that essentially limits the protection there. (They can refuse to pay interest on amounts above $500K)

[smihaila]

Arghh, I didn't know that :( thank you.

[angel_wing0]

nicely said, savings account interest easily beat out csb's. If CSB interest is non-taxable, that will be another story.