*

ati eeecnttrneimpsanatier aire acta ein tacnmpantatt tes cteutt nee ete pe a epetete te eintonae eiletenee atte scp anun a

cinstitution needs your
‘With more. women entering the

Business

Consider term deposits
for your excess savings

TO MANY people, a bank
.or credit union is simply a

safe place to put surplus
cash. ;

Here’s another way to look at it:

Think of a financial institution
as a company in which you are in-
vesting, says Sheila Kilpatrick,
manager of the Lynn Valley
branch of the North Shore Credit
Community Credit Union.

You loan the bank or credit
union. money by putting cash in a
savings: account or term deposit,
for which you are paid interest.
The financial institution then uses
its pool of money to make loans to
individuals and companies, at a
higher interest rate. The difference
between the two interest rates is
the bank or credit union's profit.

To make this profit, a financial
money.

workforce, and more surplus cash
being generated by two-income
families, there is more money out
there. -

“There's never been so much
competition in’ the financial
business as there has been in recent
years,”’ says Kilpatrick. This com-
petition shows up in higher interest
sates for deposits, and in greatly
extended hours of operation, ‘says
Kilpatrick. .

* Tt also. shows up | ‘in promotions.

“But when you are looking for a
’ financial institution, is: your first

. soa asks 'k
7 i During the:

iT. Ss sometimes, easy to forget ‘that

What .you. ‘buys: :you have 10 pay.

‘Here -are some guidelines: for.
‘keeping - “control of] your fi inancial

affairs, especially’ your debts, ©
Make'a budget’ for /yourself and

“stick. 10 “it: “Make! sure you know.
what is coming in and what is go-
fe “e:Be sensible. about the number of

ig out.”

guaranteeing : a loan’on. behalf of
‘gthers Rememb;

Avoid _impalse’| buying. Ask.
ourself: If 1 had. to: pay -in cold, :
hard cash, would I make. this” 5 Pu -

‘that: you could a

than three million women reported
interest income on their income tax
returti. Together, they earned more
than $6 billion.

Afier comparing the various
features of each account, your

primary motivation should be to
maximize the amount of interest
your money earns, says Kilpatrick.
After building up enough cash in
a savings account to cover minor
emergencies, you should consider
investing in a term deposit, she
advises. Generally, the minimum
deposit that can be made to a term
deposit is $500 or $1,000, depen-
ding upon the financial institution.
Term deposits are. simply an
agreement you make with a bank
or credit union to Ioan ther a set
amount. of money for a set period
of time. The length of aterm can
vary anywhere from 30 days to five
years. ; .
As a rule of thumb, the longer

“. you ‘leave your money in a term

deposit,.the higher the interest rate

™ paid on that deposit will be.

end uP paying off the Joan if the
borrower cannot handle it, Ask the

> Same questions of. the borrower

that the lender would ask:

‘© Be knowledgeable about the cost
‘of, credit. Are you ‘using the right

type. for your. purpose? Are you

_using. a. more ‘expensive ‘form of

credit than necessary?.
credit cards you: use. How. many.

do you really need?, Are you- using
them. » simply because 4

* . Keep. track. ‘of all” credit fi “pur-

~ghases. Save. the receipts for check-

ing against the monthly statements

».and for keeping a running total of:
‘your obligations.
«> Get an extra check register (the~
“part of the check book where you
_keep- track: of -deposits) and

withdrawals). ~.
Sn oe

A suggestion:: :

““A lot of people leave an in-
credible amount of money sitting
in an interest-free or low-interest
account, due to the ‘what if’ syn-
drome,” says Kilpatrick. ‘‘This is
especially true of older people.”

Instead, Kilpatrick suggests put-
ting at least some of that money
into a 30- day term deposit, then

“rolling over" this money every 30
days. Even a 30-day term deposit
will pay more interest than a regu-
lar savings account.

“*You can usually last 30 days, if
something comes up,'* says
Kilpatrick.

These days, she adds, people
seem to be wary of five-year term
deposits. They worry that regular
interest rates might surpass those
of the term deposit that they have
locked their money into.

Some term deposits do offer the
possibility of early withdrawal, but
the money earns cither no interest,
or very little interest.

13 - Sunday, May 25, 1986 - North Shore News

Before you roll over your RRSP...

What would you rather
have...control, flexibility

and potential growth?

Or an annuity?

Under the terms of the new budget. a clear choice just became
clearer. Because RRIFs now offer more advantages over annuities
than ever before.

For example. with an Industrial Group of Funds RRIF. you set
the pay-out rate Qvith no waiting apd ao annual maximum)
from as many plans as you care to oct up... vou choose the
investments ... you direct any estate planning — and vou have
the right to transfer at any time.

More importantly youll have the potential for growth in your
investment,

So the choice is simple: what would you rather have...
control, flexibility and potential growth? Or an annuity?

Belore you make up yeur mind, please return the coupon,
below for full comparative details.

The Industrial Group of Funds |

OC) Please send mea copy af your booklet comparing the merils of

annuities and Registered Retirement Income Funds.
SAME

STREET cy
POSTAL

PROV CODE HONE one nn verre nee
~— Heer iat

Lil C. Glendinning
Great Pacific Management Co. Ltd.

300.1190 Homby St.
Vancouver B.C. V6Z 2K5 :

siny offer made onle bu prospectus.

Classifieds Sell
986-6222

orth shore

S.

“5 year annual interest payment, minimum $1,000.
. Rate subject to change without notice. Issued by Bank of British h Columbia Mortgage Corporation,

Redeemable G:I.C.’s feature:

+ Minimum deposit $1,000.
* Minimum term of 1 year.

| e scinterest payment options of semi-annual, annual
- and monthly for deposits over $5, 000.

ae Redemption at any time.

“TAKE ADVANTAGE TODAY!
‘Ask at your nearest branch for complete details,
NORTH VANCOUVER BRANCH

1457 Lonsdale Avenue —
Telephone: 980-2451

WILLIAM A. BAKK B. A, C.A.

Mr. Old Methuselah,’ President, is pleased to announce that

Willlam A. Bakk will: ‘be: joining the corporation | as manager,
accounting.

, °. Mr. Bakk brings many, many years of extensive experience as

: a bean counter. «.”' .

“of. As well, Mr. Bakk will, assume the position of senior vice-

=, president, receding hairlines, for which he is eminently qualified.

‘|; These appointments will be effective May 27, 1986 on the 40th

« anniversary of Mr. Bakk's birth. .

chee
|:
- WEST VANCOUVER BRANCH
' . _1578 Marine Drive’ ,
Telephone: 922-3311. .

Bank of British Columbia
"Canada’s Western Bank . ; . oo