As our current landscape continues to evolve, so do we. These changes apply to the personal use cards only and do not apply to the Shared Interest Visa Business card.ĭuring these challenging times we’re here to support our cardholders. We sincerely apologize for any inconvenience caused and thank you for being a VCIB Shared Interest Visa cardholder. If you have any questions about these changes, please do not hesitate to contact Card Services at 60 or toll-free at 1-84. By discontinuing these cards, we can direct more resources into these values-aligned businesses to help build more affordable housing, expand cleaner energy options, grow local mission-based businesses, and meet other critical community needs. To better align with this organizational focus to provide financial services to values-aligned businesses, we discontinued our personal use Shared Interest Classic* Visa and Shared Interest Gold Visa cards on May 31, 2021. As a commercial – or business – bank, we specialize in supporting organizations and enterprises that positively impact the communities where they live and work.
This report by The Canadian Press was first published March 8, 2023.At Vancity Community Investment Bank (VCIB), we’re committed to using the tools of finance to drive immediate and lasting social and environmental change in our communities. "Equities tend to be one of the best buffers against inflation, and part of the reason why is companies can raise prices," he said.īut Damiani said you still want a mix of some stocks and fixed income in any portfolio because over some periods of time you will get more return from stocks, and over different periods your returns will come from your fixed income. "When you're looking at building out an overall portfolio that is based around your values, based around your time horizon, based around your risk tolerance, it allows you to know exactly the type of investing that you should do and not fall trapped to that emotional investing," he said.ĭamiani said there's still reason to hold stocks. "If an individual has money they've kept maybe on the sidelines or as an emergency fund and they were looking at wanting to get in and take advantage of the rates, it's not a bad idea as part of a balanced portfolio," he said.īut he cautioned that it needs to be part of a larger financial plan. Reid said it is important that your portfolio is structured to meet your needs. Joe Reid, vice-president of wealth management and impact investing, at Vancity, said investors often think of GICs as being safe and while the return and the principal are safe, the risk is your returns won't keep up with inflation and you will see your purchasing power eroded. While bonds and investments like GICs are paying higher rates, those returns are being offset by hotter inflation.Ī five per cent return on a GIC may look attractive enough compared with the paltry rates paid a couple of years ago, but with inflation at around six per cent, that return doesn't look as good when compared with the rising cost of living. However, there are risks in chasing the higher yields from bonds and other investments. The yield on Canadian government five-year bonds, which began 2022 at about 1.5 per cent, was more than 3.5 per cent in recent days. The increases have helped drive up bond yields and the rates paid on investments such as guaranteed interest certificates (GICs) and term deposits. The Bank of Canada kept its key interest rate on hold Wednesday at 4.5 per cent, the first time it has left the trendsetting rate unchanged since it began raising it last year. "So that's a big change, and bonds go up in value when interest rate expectations go down and we've actually started to see interest rate expectations go down since October."
"There's potentially the opportunity for the more conservative retiree investor to actually generate significant yield now from fixed income," he said. Jordan Damiani, an investor adviser at Meridian Credit Union, said 2022 was a difficult year as higher interest rates took a toll both on the stock markets and the bond market.īut he said bond investments that were yielding 1.5 to two per cent before the pandemic are now yielding anywhere from five to seven per cent. When interest rates tumbled, investors living off their savings searched for a way to earn income from their investments and in some cases took on more risk as they looked to dividend paying stocks and riskier bonds.
OTTAWA - After years of sitting at rock bottom levels, higher interest rates are forcing Canadians with debt to pay more and crimping budgets - but for investors in need of income from their portfolio, higher rates are a welcome sight.
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