Class A Shares Investment Offering for Members

Here we grow. Together.

For a limited time, East Coast CU is offering a members-only opportunity to purchase Class A Shares in your credit union. Paying out annually at 1.25% more than our 5-year term rate1, your investment contributes not only to the future growth of East Coast CU and our communities but helps your finances grow as well.

Stimulate growth. Enjoy a future in full bloom.

A great investment for individuals or businesses. Add this unique investment option to your business, savings, or retirement portfolio for a higher rate of return than traditional term deposits.1 Held as non-registered deposits, RRSPs, or TFSAs, you may invest as little as $1,000.2

Plant the seeds now. The season is short.

A set amount of East Coast CU Class A Shares will be sold on a first come, first serve basis with a minimum annual payout of 2.85%1 and minimum 5-year investment period. You may borrow new funds or transfer savings from other financial institutions to take full advantage of this opportunity.

Be a Part of Something Bigger

East Coast CU members are working together to build the kind of community we all want to be a part of with a prosperous future we can all share. What could be more rewarding than that?

Terms and Conditions can be found here.

Get started now!

To get started, please complete the Class A Share Investment Offering request form here.

Frequently Asked Questions

Why does East Coast CU need to raise capital? Expand/Collapse

At the end of December 2021, our total regulatory capital was $62.8 million or 5.90%. East Coast CU’s capital levels are strong and well over the regulated minimum 5.0% amount of capital that we are required to hold to make sure everyone’s money is safe.

It is exciting that East Coast CU continues to grow. As members bring us more of their banking business, we’ll need more branch transformations, technology resources and great people to serve them. To support our growing occupancy costs and future asset growth projections, it is a wise course of action currently to ensure our capital base grows as well. That’s how we will continue to build on the superior products, services, rates, returns, and community involvement that make us so unique and proud.

How much is East Coast CU looking to raise? Expand/Collapse

The Offering Statement sets out a minimum of $10 million and a maximum of $30 million.

How much can I invest? Expand/Collapse

You may invest between $1,000 and $3,000,000. These limits are set to make the opportunity accessible to as many members as possible.

How long will the sale of Class A Shares last? Expand/Collapse

The sale will continue until all the shares are sold or until September 30, 2022, whichever comes first. The Board of Directors can stop sales at any time once the minimum funds are raised.

How will dividends on Class A Shares be paid? Expand/Collapse

Your dividends on non-registered funds will pay out into an account of your choosing, set at the time of purchase. RRSP and TFSA dividends will be deposited to your variable RRSP or TFSA account. The Offering Statement provides full details.

How long is the term? When can I cash in? Expand/Collapse

Class A Shares are typically purchased by members with a long-term investment horizon. However, members who wish to redeem their shares may do so after five years, subject to the parameters detailed in the Offering Statement.

What is the tax treatment for non-registered investments in these shares? Expand/Collapse

Members will receive a T5 for reporting interest income annually if the Class A Shares are non-registered (not in a TFSA or RRSP).

Can I deposit registered (RRSP, TFSA, or RRIF) funds into these shares? Expand/Collapse

This series of shares can be held within a TFSA or RRSP, but not a RRIF due to the limited ability to redeem these investments each year. A TFSA is a registered plan option for members who are 66 years or older and have available contribution room.

If I decide to purchase, what happens with my funds between now and the issue date? Expand/Collapse

Your funds will be placed in an escrow term deposit/RRSP/TFSA account and earn interest at contract rate until the issue date. Full details will be provided at the time of purchase.

Will the Class A Shares show up on my statements? Expand/Collapse

Within 60 days of the closing date, you will see “Details of Class A Shares” along with the amount on your regular East Coast CU statements.
1Terms and conditions apply. Pays out annually at the greater of 2.85% or 1.25% over the in-force 5-year term deposit rate.
2Like mutual funds and other moderate-risk investment options, investment shares are not insured, and dividends are not guaranteed.