Collectively housing co-ops in B.C. hold hundreds of millions of dollars in their reserve and operating funds. Our banking and investment programs can help you make those funds grow.
The Co-operative Housing Interest Pool (CHIP) offers co-ops a way to save better. CHIP turns small individual co-op accounts into one large depositor, making them all eligible for higher interest rates. The larger the total amount on deposit, the higher the interest rate.
CHIP offers your co-op:
Currently over 159 co-ops have combined deposits of more than $157 million in CHIP through three participating credit unions: Vancity, CCEC Credit Union, and Coast Capital Savings.
Each co-op is allowed a maximum of three CHIP accounts at each credit union. Co-ops can deposit share capital, replacement reserve funds, and subsidy surplus in CHIP accounts.
Co-ops can have their operating accounts in CHIP, and co-op deposits are 100% guaranteed by either the Credit Union Deposit Insurance Corporation of BC or by CDIC insurance ($100k of coverage per entity) depending on the credit union. Your co-op’s accounts will remain independent; they are simply identified as part of CHIP for interest and service charge calculation purposes. You will continue to have easy day-to-day access to your money.
The CHIP rate paid to participating co-ops is based on the credit union’s prime lending rate, the total deposits in CHIP, and the percentage of interest paid to the credit union and CHF BC. As the total balance increases and as the prime rate changes so does the interest rate paid to participating co-ops.
On the Mainland, CHIP is offered at all branches of Vancity, and Community Savings Credit Union – CCEC Branch.*
On Vancouver Island, it is available at Coast Capital Savings and Vancity.
Most participating credit unions have no withdrawal notice or minimum deposit requirements.
*Community Savings Credit Union merged with CCEC Credit Union on October 1, 2022. Click here for more information on Community Savings’ co-operative banking.
CHIP is a perfect vehicle for funds you need now. When you're thinking of longer time horizons, you may want to accept some risk for higher potential returns. And you may want to explore what Encasa can offer.
Encasa Financial Inc. is a registered investment fund manager created specifically to manage the investment of capital reserves and other long-term funds for co-operative and non-profit housing providers. CHF BC is a co-owner of Encasa in partnership with CHF Canada, the BC Non-Profit Housing Association and Housing Services Corporation (HSC) of Ontario.
Encasa got its start in Ontario more than a decade ago as SHSC Financial Inc. and now manages investments of more than $500 million for over 850 co-op and non-profit housing providers. All of Encasa’s investment funds feature low management fees and an ethical screen to promote socially responsible investments.
To learn more for your co-op, contact Mike Ames firstname.lastname@example.org.