Bank Deposit Compensation Scheme:
Canadian Bank Deposits

The current compensation scheme covering Canadian bank deposits protects depositers upto the value of $100,000 CAD should the bank be unable to meet it's financial obligations.

WARNING! - Any bank deposits in excess of the set Government compensation scheme are at very high risk should the bank go in to financial difficulties. Simply put - you could lose 100% of your deposit(s).  RIO strongly recommends that members do not take this risk, especially since banks are offering little reward for the degree of risk taken by you (the depositer).

To quantify this risk, it is possible you could sustain a 100% loss versus set bank deposit return 2%- Risk/Reward ratio very poor! Why take the risk if you don't need to?

Recommendation; firstly check that your bank is covered by the compensation scheme if not move banks. Secondly should any member have bank deposits in excess of government compensation scheme they should open a second account, this must be at another bank to enable multiple instances of compensation.

It is important to make sure that the bank chosen isn’t owned by or a subsidiary of the bank you already have deposits with. For any member with large amounts of cash on deposit firstly this is not recommended for several reasons, the main reason being that the purchasing power of the physical money depreciates over time. For those who simply prefer having large amounts in cash on deposit then at least protect your capital, by diversifying such deposits to several unconnected bank accounts also ensuring that each deposit remains below the set compensation scheme level at least you've done your part to protect the basic capital. Not to do so would be simple disrespect for money and plain ignorance.

Capital Protection Products Vs. Canadian Bank Deposit Offers

There is a world of difference in Bank deposit versus RIO Fixed Income Bond in terms of both Risk and reward.

Bank deposit

Bank guarantee is limited to that set by regulatory authorities in Canada which is currently set at $100,000 CAD, as such capital over this amount is not protected and at Risk. (risk/reward very poor).

Specifically designed for small lump sum, bank deposits are usually facilitated via high street banking. (banks are exposed to risk by nature of their business) Risk/Reward ratio poor

When contemplating retirement you should not expose capital to significant risk as such bank deposit accounts holding large sums for retirement may not be wise and could be disastorous.

RIO Fixed Income Bond Series 2 (Improved Surety)

With the RIO Fixed Income Bond 100% of capital is guaranteed / no risk to capital.

The bond returns 7% before tax, however tax can be mitigated completely in many circumstances should you require information on this process we are happy to provide information.

Designed for retirement and large lump sum investments, by nature this type of vehicle bares no risk to capital and offers 100% protection - combined with a fixed return for fixed period. (risk/reward ratio Excellent)

Current Canadian Bank Deposit Rates

Deposit Account Type		Term	APY	Account Details
ING Direct Canada 1 Year GIC		1 year	1.35%	This interest rate applies to the ING GIC 'Guaranteed Investment' which is for 1 year and ha - CAD - Mar, 2013
BMO 1 Year GIC		1 year	1.150%	Rate is for 1 year and Annual / Annual Compound Interest Payment Option and $1,000 - $99,999 for - CAD - Mar, 2013
RBC 1 Year GIC		1 year	1.10%	- Rate is for a Redeemable GIC and is for 1 to 1.5 years- Minimum deposit : $500- Invest - CAD - Mar, 2013
BMO 6 Month GIC		6 month	1.000%	This GIC interest Rate is for a term between 180 - 269 days and is for the 'BMO Short Term Invest - CAD - Mar, 2013
TD Canada Trust 1 Year GIC		1 year	1.00%	This TD Non-Cashable GIC product has an interest rate that is applicable for a 1 year / 12 month - CAD - Mar, 2013
Vancity 1 Year Term Deposit		1 year	1.00%	The interest rate indicated  applies to the 'redeemable term deposit product' that requires a min - CAD - Mar, 2013
HSBC Canada 1 Year Term Deposit		1 year	0.95%	This CAD Interest rate is a 1 year / 12 month term and requires a minimum of 1,000. This product - CAD - Mar, 2013
Scotiabank 1 Year GIC		1 year	0.90%	Rate is for 'Long Term Non-Redeemable GICs'(Non-Registered:An - CAD - Mar, 2013
CIBC 1 Year GIC		1 year	0.900%	Rate is for 'CIBC Long Term GIC' account and is term is for 12 - 16 months and $1000 - $99,999 - CAD - Mar, 2013
BMO 3 Month GIC		3 month	0.900%	This BMO Guarenteed Investment Certificate interest Rate is for a term between 90 - 119 days and - CAD - Mar, 2013
Desjardins 1 Year Term Savings Account		1 year	0.90%	This fixed interest rate product refers to the 'term savings' product for a 1 year at maturity te - CAD - Mar, 2013
TD Canada Trust 6 Month GIC		6 month	0.85%	This is a TD Non-Cashable GIC short term product and the interest rate is applicable for a 180 da - CAD - Mar, 2013
TD Canada Trust 3 Month GIC		3 month	0.75%	This is a Non-Cashable Guarenteed Investment Certificate (GIC) product and is applicable for a 3 - CAD - Mar, 2013
RBC 6 Month GIC		6 month	0.750%	- Rate is for a Redeemable GIC and is for 180 to 269 days- Applicable to balanc - CAD - Mar, 2013
TD Canada Trust 1 Year Term Deposit		1 year	0.70%	This TD interest rate is for a 12 month/1 year deposit term (long term) with a minimum of $1000 - CAD - Feb, 2013
RBC 3 Month GIC		3 month	0.650%	- The Interest Rate is for the Redeemable GIC Product and is for 90 to 179 days or 3 month equiva - CAD - Mar, 2013
National Bank of Canada 1 Year GIC		1 year	0.65%	This 'Redeemable GIC' product for a 12 month or 1 year term with Interest paid at maturity/annual - CAD - Mar, 2013