Preference Shares

Rosenort Credit Union is pleased to introduce a Preference Share program.  This share offering introduces a new investment option for RCU members with the potential for increased  investment returns.  Preference shares strengthen the credit union’s financial position by increasing member equity.

Preference Shares are available to RCU members at a minimum purchase price of $1,000 and up to $50,000 maximum per member.  Preference Shares are also TFSA and RRSP eligible.

 

Frequently Asked Questions

When can I purchase RCU Preference Shares?

2016 Shares will be available Feb 1, 2016. *Note: Due to overwhelming demand sales have been suspended.

How do I purchase RCU Preference Shares?

See our sales staff in Rosenort or Altona for more information.   They will provide you with a company prospectus and the necessary subscription form.

Can I use my existing RRSP to fund a Preference Share?

Yes, for members under the age of 61.  

Can I use my existing TFSA to fund a Preference Share?

Yes.

Are Preference Shares Safe?

While Preference Shares are considered to be Risk Capital and are not guaranteed by Manitoba Deposit Guarantee Corporation, RCU has a long history of providing exceptional service, great rates and maintaining a strong financial position.    

Revenue sharing is paid to Preferred Shareholders prior to Common shareholders as preferred shares rank above the interests of common shares.

What is the expected Return on Investment?

Each year the board of directors will determine a dividend rate.  Dividends will be paid as interest into existing deposit or registered account.   The intention of the credit union is to pay not less than 100 basis points (or 1%) above the posted RRSP interest rate at the time of declaration.    

What is the term of investment?

Preference Shares are considered a long term investment.   Liquidity is subject to Credit Union performance and Board of Director approval.