Servus Alberta Common shares are now TFSA Eligible! Servus is a Cooperative (Co-op) and the largest Credit Union in Alberta. They run member-owned banks that serve small towns as well as major cities with a community focus. In the last few years they have made leaps and bounds in their online banking, marketing campaigns, and modern banking services.
When you join Servus you are required to purchase 1 common share on which you received a dividend every year, as well as profit sharing for all members based on the services they use. This profit-sharing model has helped Servus grow and recruit new customers that are looking for something community-owned that gives back to the local economy.
In addition to that 1 share members purchase when they open an account, there is an option to purchase more Servus common shares going forward. The returns are respectable as an investment, much better than current GIC rates, and they come in the form of more common shares opposed to just cash dividends. These are a longer term investment since there are stipulations with selling the common shares, it requires board approval at the annual board meeting.
Now TFSA eligible!
Very recently Servus made their common shares TFSA eligible (previously they were not). Given the consistent returns, this is a fantastic opportunity to get your TFSA savings to create compound returns and tax-free dividends. Each member can only purchase $40,000 worth of common shares, very close to the Maximum TFSA contribution limits.
If you are looking to get some diversification and have too much of your cash tied up in the stock market and big tech companies, Servus Common shares are a great way to diversify your portfolio and invest in a local Alberta business.