Investing - FAQ

Q. What types of investments does KCCU offer?

A. Membership shares, Dividend Savings, Savings Accounts, Term Deposits/GICs (Guaranteed Investment Certificates), RRSPs (Registered Retirement Savings Plans), RRIFs (Registered Retirement Income Funds), TFSAs (Tax-Free Savings Accounts), RESPs (Registered Educational Savings Plans). We also offer Mutual funds, Stocks, Bonds and ETFs through Aviso and Credential Asset Management (a separate company with whom we have a partnership).

Q. How will I know which products are deposit-insured?

A. Our deposit insurer is the Financial Services Regulatory Authority of Ontario (FSRA - a provincial crown corporation) - see for details on how deposit insurance works and what it covers. You may also ask your investment advisor before you invest, so you can know. Deposit insurance does not cover ownership shares, US dollar deposits, mutual funds and deposit amounts in excess of maximum coverage limits.

Q. What is the best investment for me?

A. Investments depend on your stage of life. A solid financial plan involves a savings component regardless of your age but certain investments make more sense at different stages of the life cycle. Monthly investing can make a lot of sense and we can help you set up a transfer to put some money aside each month after you choose your preferred investment.

Q. How do I get a hold of someone who can advise me?

A. At KCCU we have senior personnel and lending/investment specialists who are familiar with our investment products. Initially they will want to understand a bit about you, so they can get the background information they will need to make an appropriate recommendation for your consideration. Come into the branch, send us an email to, give your branch a phone call and ask for telephone advice or for a meeting depending on the level of advice you require.

Q.Can I get a better rate for a larger investment?

A. Although we have posted rates available in branch and on our website, it pays to give us information about the amount of business you wish to do, the amount you currently have on deposit and the amount of the investment. The more you invest, the more likely it is a bonus rate can be offered. Investments of over $10,000 may qualify for a bonus rate as would investments over $100,000. The more we know the more we can custom-tailor rates and suggestions for you. 

Q. How do I know whether I should buy an RRSP or a TFSA?

A. First, TFSAs have annual and lifetime contribution limits. Additionally you may use accumulated unused contribution room from past years. TFSAs do not give you an immediate tax deduction whereas RRSPs do. Secondly, RRSPs are taxable when withdrawn, whereas the gain on TFSAs is not taxable when you withdraw it. Unfortunately once you withdraw a TFSA, you do not get the room added back. TFSAs are better for short term saving than an RRSP, however homebuyers can withdraw an RRSP for a downpayment and avoid paying taxes providing they repay it before 15 years using the First-time Homeowners withdrawal provision (T1036).  TFSAs may have greater potential for appreciation in a mutual fund, assuming the mutual fund's potential gain is greater than the rate of interest on a guaranteed investment. However values fluctuate and there is downside risk on all mutual funds. Talk to an investment advisor to get into specifics. Mutual funds are not deposit-guaranteed, so when comparing features, advantages and benefits also consider the importance of seeking professional advice before making an investment to ensure you understand the attributes of what you are investing in.

Q. Does KCCU offer mutual funds?

A. No. Credential Asset Management offers mutual funds. Some KCCU lending/investment specialists are permitted to sell mutual funds for Credential Asset Management. Should you wish details please arrange an appointment with a licensed representative.

Q. Can I make a deposit to a RRIF?

A. No, Only exisiting RRSPs may be converted into RRIFs. The latest you may convert your RRSPs into a RRIF is December 31st in the year in which you turn age 71.

Q. Do RESPs make sense for my family?

A. RESPs have benefits and drawbacks. If you have every intention of having your child attend post-secondary education, then the long term benefits are that the gain is taxable in the hands of the student who will likely have lower income than the parent or grandparent who contributed. There are family plans and individual plans. For more information please see our section on RESPs and arrange an appointment in person or by phone to discuss if an RESP makes sense for you and your family.

Q. If I have a compliment or a complaint or an issue I would like adjudicated is there a mechanism in place?

A. Yes. KCCU has compliments or complaint resolution process.