Q. In these uncertain times, why should I save? Why should I save with an institution such as a Credit Union like Synergy? Would it not be more secure to use a Safety Deposit Box than an account?
A. During uncertain economic times – your best strategy is to either reduce your debt or increase your savings, although doing both would be optimal. This provides flexibility so you can react to changes in the economy or your personal employment situation, if needed. If you build up reserves (savings), you have the ability to borrow from these funds, use them as collateral, or draw from your savings for survival during tough times. As a rule of thumb, it is best to have 90 days of your salary in savings so you have a buffer for unexpected circumstances.
Another option to consider is insurance, such as life or disability insurance, to protect you from unforeseen circumstances. Did you know that if you have a Synergy mortgage that is covered by Group Mortgage Protection, you can get special coverage that will protect you in the case of a layoff? Our loan officer can discuss the details and options that are available to you for your loan protection .
As for the safety and security of funds on deposit – funds held on deposit with Synergy Credit Union are insured by an unlimited guarantee through the Credit Union Deposit Guarantee Corporation (CUDGC). For more information, visit CUDGC’s FAQ section at www.cudgc.sk.ca.
This coverage starts the moment you make your deposit at Synergy Credit Union. It’s automatic, and it’s free. Therefore, you don’t need to worry at all about your funds, including the interest earned, in your chequing, savings, term deposits, registered plans and US funds held on deposit with us. There are no time restrictions and it does not matter where you live – it can even be outside of Saskatchewan. Furthermore, the coverage applies to both members and non-members who have placed their trust in Synergy.
You should also know what is not covered. CUDGC does not insure safety deposit box contents; membership shares; funds in your ProfitShares account, and investments that you hold outside of a credit union. Therefore, although a safety deposit box is safe for other contents, depositing your cash into a safety deposit box is not recommended.
Make an appointment with a financial expert who will look at your overall situation and match the best investment plan with your goals, objectives and risk tolerance. This service is available free of charge through Synergy Credit Union, and well worth your while.
