Ukrainian Credit Union

[index.php] About UCU History Vision Statement Membership » Why Become a Member How to Become a Member Branches Directors Executives Corporate Info Careers Banking with UCU Accounts » Chequing Savings Account Packages Youth Accounts US Banking » Foreign Exchange Rates Bill Payment Direct Deposit How to bank with UCU » U-Touch Telephone Banking U-Access ATM In-Branch Banking Internet Banking Call Centre Borrowing Loans » Line of Credit Home Equity Line of Credit Overdraft Protection Borrowing Rates Apply On-Line Mortgages » Apply On-Line Best Offers & Specials Borrowing Rates Car Loans » Borrowing Rates Apply On-Line Credit Cards » MasterCard Gold MasterCard Commercial Special Offer Investing GIC/Term Deposits » Investing Rates RRSP and RRIF » Investing Rates RESP`s » Investing Rates US Savings and Term Deposits Wealth Management » Becoming Wealthy Mutual Funds Stocks Bonds Insurance Life Events Planner Wealth Management Becoming Wealthy Mutual Funds Stocks Bonds Insurance » CUIS Get Quote Site Life Events Planner Contact Us Branches Iммiгруєте? Search: Mutual Funds | Stocks | Bonds | T-Bills | Credential Securities Bonds CANADA SAVINGS BONDS andONTARIO SAVINGS BONDS • A vailable every year from October to April 1 • Can offer compounded interest • Can be cashed in for full face value plus any accrued interest before maturity THE RISKS Don't pay high rates of return-aren't ideal for longer term investing. Investor will not stay much ahead of inflation. Cannot be sold at a profit on the open market THE REWARDS • CSB are safe investment backed by the federal government • Sold for less than face value (at a discount) • Will be redeemed for face value on maturity • Can be bought & sold on the bond market. GOVERNMENT BONDS (CDN&USD) • Can be bought at premium or discount to face value • Can be sold in the bond market before they mature. • Bond market in Canada is up to 35 times bigger than the stock market THE RISKS • If interest rates go up and investor decides to sell prior to maturity-could have capital loss • Bond prices are affected by interest rates, issuer's credit rating, the term to maturity, bond's coupon rate THE REWARDS • Conservative investors who want to earn income buy government bonds & hold them to maturity • The returns are often better than for GICs and CSBs .Don't have to wait until maturity to earn full return .Could generate capital gains CORPORATE BONDS AND DEBENTURES (CDN ; USD) • They come with short and long-term maturities. • Can be sold or bought on the open market • Cannot tum them into the company for cash until the maturity date • Can be sold at capital gain or loss THE RISKS • If company goes out of business, investor may lose his/her investment • More risky than government bonds THE REWARDS • Pay higher return than government bonds • Attractive for investors who need to live on income from investments STRIP BONDS (GOV or CORP - CND & USD) • Government or Corporate Bonds with the coupons removed • Strip Bonds don't pay interest • Sold for less than face value (at a discount) • Will be redeemed for face value on maturity • Can be bought & sold on the bond market THE RISKS • React much more strongly to interest rate changes than regular bonds • Less liquid and more volatile than regular bonds THE REWARDS • Compounded rate of return • Predetermined quantity on maturity • Ideal investment for fixed income portion of RRSP portfolio • Taxes must be paid annually if held in non-registered (open) plans Copyright © 2006 Ukrainian Credit Union. All rights reserved. Creative Concept by Creative Quotient Inc. Privacy policy Developed by Business Development Network