 1. What is a deposit broker?
Deposit Brokers specialize in "guaranteed" investment products such as GICs, and term deposits for non-registered investments, RRSPs, RRIFs, LIRAs, and other plans. We also offer guaranteed investment funds (segregated funds), and annuities. As independent providers of financial products and services from numerous Canadian financial institutions, we also provide access to various life insurance and critical care products.
We provide you with the best, independent advice on information affecting your product needs. We receive daily information on current interest rates, and always look for the best investment available from a variety of financial institutions such as trust companies, banks, insurance and fund companies. There are no fees for this service!
2. How do Deposit brokers offer services Free of Charge?
We receive our compensation directly from the financial institutions for referring business. You can get the best rates and widest selection of investment options at no cost.
Financial Institutions use the Deposit Brokers due to the tremendous overheads it takes to run their branches. These savings can get passed on to the investor by way of higher rates, completely free of fees or commission.
3. How can Deposit Brokers offer the highest interest rates?
Deposit Brokers receive daily information on current interest rates and current product availability from financial institutions all across the country. As opposed to paying high salaries and overheads, large financial institutions find it cost effective to use brokers to bring find them new business. These savings get passed on to the client by way of higher rates.
4. Name the benefits of dealing with a deposit broker?
- Many Options
- Guaranteed confidentiality
- Daily Market Data for best possible rates
- Unbiased analysis, advice and recommendations
- Complete all trade administration and paper work
- Personal service and consultation
- Favourable terms when transferring existing investments, including RRSP’s.
- Investments tracking of your maturity dates and renewal reminders
5. What amount of money must I invest through a deposit broker?
Some of the institution rates do require minimums deposits. Please contact us for the details.
6. How is my money deposited?
For your protection, we insist that cheques should always be made payable to the financial institution.
7. When does my investment start?
Your investment starts the same day you complete an application and submit a cheque, (as long as the investment is made prior to that days trading deadline) or the next banking day. Please note that those individual who live in remote locations occasionally are the rare exception to this rule.
8. How are my interest payments made?
The options are endless. You may have your interest deposited directly to any financial institution account or it can be mailed; payable annually, semi-annually, quarterly, or monthly. Alternatively you could let the interest compound to maturity and receive a single payout.
9. How do I know my deposit is safe?
All institutions we represent have a guaranteeing body: Canada Deposit Insurance Corporation (www.cdic.ca ), Assuris (www.assuris.ca ), Deposit Insurance Corporation of Ontario (www.dico.com) or Credit Union Deposit Guarantee Corporation (www.cudgc.com ). You can read about each of the guarantees, and which companies they apply to, at their respective websites (see above). Each guaranteeing body has their own rules and limitations, so we make sure our clients are educated before they make any investment decisions.
From a corporate level, clients do not need to worry about safety because we insist that all cheques are made out directly to the institution the client invests with. We do this to provide an added layer of security and comfort for our clients.
10. Should I be concerned if an institution is not a member of a Guaranteeing institution?
YES. Membership in CDIC, Assuris, DICO, or CUDGC should be a consumer consideration when making an investment. Attention must be placed on the maximum insurable amount. Some people may argue that investment considerations should be based solely on the strength of the institution's balance sheet, however your investment is placed with that institution for a future term and the balance sheet reflects historical, or at best, current situations. Unforeseeable events such as new ownership and a different corporate philosophy or changing economic conditions may weaken financial stability. Deposit insurance is your best long term protection, and it was for this reason that CDIC, Assuris, DICO and CUDGC were originally introduced.
11. What If I Die Shortly After I Invest In An Annuity?
With an Annuity, you can choose from various guarantee periods that can ensure that your estate, or your designated beneficiaries, continue to receive income payments in the event of your death. Guarantee periods can range from zero to more than 25 years. The best part is that the guarantee option is totally up to you.
In general, choosing a longer guarantee period will decrease the amount of income produced. Longer guarantee periods require more funds to be set aside by Manulife to provide for the additional guaranteed payments.
For Term Certain Annuities, payments will continue until the end of the specified term. Even if you die before the term ends, the annuity payments will continue to your estate, or your designated beneficiary, until the end of the term. |
