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What is the "credit union way"?
Community Savings is a credit union; in fact, our legal name is Community Credit Union Ltd. As a credit union, Community Savings is owned by members and is a part of the community.
A credit union is an association of members, joined together in a cooperative endeavor, who own and control the credit union.
The credit union provides a safe, convenient and attractive medium for the investments of members. As well, it enables members to lend money to other members at competitive rates and terms, following the regulations of the Credit Union Act. Credit unions, like other financial institutions, are closely regulated.
In the province of Alberta, credit union deposits (other than shares and mutual funds) are guaranteed 100% by the Credit Union Deposit Guarantee Corporation. This includes both the principal and accrued interest, up to any dollar amount.
Each credit union has a Board of Directors consisting of members who are democratically elected by the membership Each member has one vote, regardless of the amount of business they have with the credit union.
Directors of the Board choose amongst themselves a chairperson, a vice-chairperson, and a secretary. A credit committee is appointed by the board, and the membership appoints an outside auditor to carry out the work of the supervisory committee. These are all volunteer positions.The directors hire a General Manager or Chief Executive Officer to manage the operations of the credit union, including the employment of staff.
After paying operating expenses of the credit union, a percentage of the net earnings is set aside for reserved earnings. The balance of the profits may then be paid to the member/owners as dividends on Common Shares. Subject to a recommendation by the board, a special rebate of interest paid or earned may be made from the remainder of the net earnings to borrowing or depositing members. At Community Savings, we refer to this as Profit Sharing.
How safe are my deposits?
Deposits with Community Savings are 100% guaranteed up to any amount, including accrued interest, by Alberta's Credit Union Deposit Guarantee Corporation. The Government of Alberta ensures that the Corporation's obligation to depositors will be carried out.
This is the strongest guarantee in Canada. It also covers foreign currency deposits and deposits with terms exceeding five years.
The deposit guarantee excludes shares and mutual funds.
How do I become an owner?
With the purchase of Common Shares, you can become a member/owner of Community Savings. Common Shares are the funds members have invested in Community Savings. Each Common Share has a $1.00 value with Community Savings.
With a minimum investment of $1 in Common Shares, personal members can share in the profits. Each member can invest up to a maximum of $5,000 in Community Savings' Common Shares; these shares may be registered (RRSP) or non-registered. |