GO FOR safety and flex-
ibility when you invest —
and you get a lower return
in exchange for lower risk.

So always make sure you get the
highest of those lower returns.

A survey earlier this summer of
50 typical financial institutions
showed one-year non-redeemable
$1,000 term deposits paying from
8.125 per cent to 10.375 per cent.

When one company offers 28 per.
cent more interest than another, your
realize shopping around pays off.

Guarantees aiso vary. Canada
Deposit Insurance Corporation in-
sures certain deposits at its
member institutions up to $60,000
per individual or joint account.
Credit union deposits in B.C. are
guaranteed up to $100,000.

Government and corporate bonds
and other paper are as good as the
governments and corporations that
issue them. The same applies to in-
surance company guaranteed in-
struments, although the industry is
hoping to introduce a deposit in-
surance program next year.

Here are some of the more
popular cash equivalent investments
— and ways to make the most of
them. Not all financial institutions
offer every one. Minimum deposits,
interest rates, fees and other condi-
tions vary from place to place.

® Savings accounts: You general-
ly receive a lower interest rate in
exchange for being able to
withdraw your money at any time.
Many tiered accounts pay more
interest as balances increase, but
ask whether the higher rate applies
to the total balance or only to the
amount above the previous tier.

Also ask how often interest is
calculated and credited and how
often the rate is adjusted. You can
have savings accounts in U.S.

dollars and some other currencies.

© Canada Savings Bonds: Issued
by the federal government each
Nov. 1, CSBs may normally be

cashed at any time for their face
value plus accrued interest to the
end of the previous month. Some
provinces also issue similar bonds,
although different conditions
could apply.

© Term deposits, guaranteed in-
vestment certificates: By commit-
ting your money for a longer
term, typically from 30 days to
five years, you can earn a higher
rate guaranteed for the term.

Ask about minimum deposit re-
quirements, how frequently inter-
est can be paid, whether com-

pounding interest earns the origi-
nal rate or current savings rate,
and if early redemption is allow-
ed, what you will earn/pay if you
redeem the deposit prior to matu-
rity. Some places offer U.S. dollar
deposits.

° Lifetime annuities: Interest
rates are guaranteed for life and
payments can continue to a sur-
viving spouse.

* Treasury bills: Issued by the
federal government for up to one
year, T-bills are bought at a dis-
count. For example, you might
pay $9,932.90 for a 29-day
$10,000 T-bill. You would receive
the $10,000 on maturity, earning
$67.10 interest or an annualized
yield of 8.5 per cent.

Ask what happens if you sell a
T-bill prior to maturity. You
might pay the broker or bank a
fee, which would reduce the inter-
est earned. You might also realize
a capital gain or loss, depending
on whether interest rates had fall-
en or risen, respectively.

* Government, corporate bords;
debentures: You receive a guaran-
teed interest rate and the return of
your capital if you hold to matu-
rity. Selling before maturity could
again produce a capital gain or
loss.

© Stripped coupons: Bought at a

CONCERN
FOR
THE

CONSERVATIVE
INVESTOR

dollars

and sense
Mike Grenby

discount, strips can mature over a
variety of terms.

© Mortgages, mortgage-backed
securities: Mortgages pay a blend
of principal and interest. Their
sale value varies with interest
rates. Mortgage-backed securities
are guaranteed under the National
Housing Act and usually mature

ee sa «

within five years.

* Mutual funds: Some funds hold
many of the preceding cash-
equivalent investments at various
times. Money market funds hold
them exclusively.

Review the amount of money
you have or are thinking of put-
ting into these types of ‘‘cash in-
vestments.’’ And consider diversi-
fying among the various choices.

Don’t look for one ‘right’
way. What's right is what feels
right for you, once you have con-
sidered all your investment op-

EXERCISE

REGULARLY

33 - Wednesday, August 10, 1988 - North Shore News

tions — non-guaranteed as well! as
guaranteed.

Do you have a financial or con-
sumer question for Mike? Or a
story you think should be in his
column? Please write to Mike
Grenby, North Shore News, 1139
Lonsdale, North Vancouver V7M
2H4, Mike cannot reply in-
dividually but will answer as many
of your letters as possible through
the North Shore News.

Remember to include your phone
number in case Mike needs to con-
tact you.

For information
on how the
YMCAcan
improve your
lifestyle call:
681-0221

1988 Accord EXi Coupe
Honda's latest model, fully
equipped, two only, one standard,
one automatic

1988 Accord LX ;
Slate gray, automatic, nicely
equipped.

1988 Prelude Si
4 wheel steering, red, 5 spd., pwr
st., pwr. brakes, pwr. windows,
pwr. dr. Iks., pwr sunroof, pwr.
antenna, tilt steering AM-FM
cassette, and more, low kms.,
executive driven,

Office Technology Program
ENROLL NOW! SPACE iS LIMITED

There are a few seats available for September
1988 in each of the following options:

> Clerical
| | Financial
| Word/Information Processing
Acquire microcomputer, word processing, and

general business skills to meet job market
demands.

Don't be disappointed. Call 984-4959 now to
arrange for your pre-admission interview.

@ ax Capiiano
@_am College

7988 ACCORD HATCHBACK
Honda's sport sedan, that seats
5. Sunroof, AM/FM casseite,

1988 CRX COUPE
Rare, auto, mag wheel covers,
sterec, etc. Won't last long. Low
kms. brand new.

1988 CIVIC DX
Auto, burgundy, with wine velour
interior, top tine, AM/FM cassette
stereo, mats and protective body
mouldings, low kms.

~
fs
+{WARRANTY
: ROKR
KM

MOR 4
COMBONENTS

984.0331,

2055 Purcell Way
North Vancouver, BC.

725 MARINE DR
N. VANCOUVER