Becoming a federal credit union

Innovation Credit Union members have voted in favor of our proposal to become the first federal credit union headquartered in Saskatchewan. Of 17,214 members who voted, 82% voted in favor of the Special Resolution.

As a federal credit union, Innovation will have the flexibility to address business challenges on the horizon, including a static, aging membership and growing competition from banks and technology companies who already provide financial services across the country. Becoming federal will allow us to actively promote our brand to non-members outside Saskatchewan. Our initial plans are solely focused on digital growth and expansion, versus the opening of any new physical branches.

Click here PDF Document to view an information booklet.

What does this mean for members? Expand/Collapse

We expect federal approval - or continuance date - to be 1 to 2 years away. As we move forward with our application, we will provide members with timeline updates.

Our application to become a federal credit union still requires approvals by Credit Union Deposit Guarantee Corporation of Saskatchewan (CUDGC), Financial Consumer Affairs Authority of Saskatchewan (FCAA), Office of the Superintendent of Financial Institutions (OSFI) and finally, the Federal Minister of Finance.

Until then, Innovation Credit Union will continue to operate as a provincial credit union that is regulated by CUDGC, with unlimited deposit insurance still provided for members.

How will deposit insurance change? Expand/Collapse

As a federal credit union, Innovation would be regulated by the Office of the Superintendent of Financial Institutions (OSFI) and the unlimited deposit guarantee provided by CUDGC would transition to the level of deposit insurance coverage provided by CDIC.

Eligible deposits to a federal credit union receive $100,000 of coverage in each of the following categories through CDIC:

  • deposits held in one name
    • savings accounts
    • operating accounts
    • term deposits with maturities of 5 years or less
  • deposits in a trust account
  • deposits in RRSPs
  • deposits in RRIFs
  • deposits in tax-free savings accounts
  • deposits in joint accounts
  • deposits in pay realty taxes on mortgaged properties

However, members' deposits will continue with an unlimited guarantee beyond the continuance date. For terms, the unlimited guarantee will extend until the term expires - even if beyond the continuance date. For demand products, the unlimited guarantee will remain in place for 180 days beyond the continuance date.

IMPORTANT TO NOTE: for over 80% of our personal members, $100,000 in each of these categories is more than adequate coverage. However, we will proactively work with Innovation members to ensure that they are receiving the most coverage available once we fully transition to CDIC.

For further information on potential upcoming changes to deposit insurance if Innovation becomes a federal credit union, please see our disclosure notice PDF Document.

Will members ever need deposit insurance? Expand/Collapse

It is important to note that deposit guarantee insurance is something that members will likely never need - and that no one has ever lost a single dollar on insured deposits through either CDIC or CUGDC. We are also proud to say that the strength and viability of Innovation Credit Union does not solely rest on deposit guarantees. We continue to adhere to strict liquidity and capital adequacy guidelines and have processes in place to ensure we remain the strong and stable financial institution that we are today and that we have been for many years in the past. Federal regulation will only strengthen these processes and guidelines.

Please click here for additional information on CDIC deposit guarantee.
 

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Federal Continuance

For information on upcoming changes to DEPOSIT INSURANCE if we become a federal credit union, see our disclosure notice. Creditors who have concerns may contact Innovation Credit Union.