CEO Newsletter – October 2021

Talka Rated #1 Credit Union in Hamilton


Talka Credit Union has just been voted the top credit union in Hamilton during the 2021 Spectator Readers’ Choice Awards. WE’RE THE #1 CREDIT UNION because we have a greatest membership base and one of the highest $ Deposits per member ratio in Ontario. This accomplishment is no small feat since our membership base is only 2,200 members and we were up against some very large credit unions with total membership exceeding 125,000 and proves that bigger is not always better. The Board, Management and Staff of Talka sincerely appreciate all our members for your continued trust and support, and we look forward to providing the great rates and member service you have come to love in the years ahead.

73rd International Credit Union Day

This Thursday, October 21st , Talka members are invited to celebrate both International Credit Union Day and our Number 1 Credit Union Readers’ Choice Award in-branch for some cake and coffee.

Index-Linked Term Deposits (ILTD) Performance

Talka Credit Union began offering ILTD GIC’s to our members in December 2020 and, at this time, we wish to provide an update on the performance of these GICs whose returns are based on the performance of the S&P/TSX 60 Index.


                                                                                                                                                  Value Date:    12-Oct-2021

     S&P/TSX 60 Index-Linked Term Deposit  Return to-date




Nov/Dec 2020 – 5y




5 Years

Strike Date:

07 Jan 2021

Strike Price:


Maturity Date:

14 Jan 2026

Participation Rate:


Averaging Date:


 Return to-date





11 Feb 2021




11 Mar 2021



12 Apr 2021



11 May 2021



11 Jun 2021



12 Jul 2021



11 Aug 2021



13 Sep 2021



12 Oct 2021



11 Nov 2021



13 Dec 2021


 Calculating the Interest

As noted in the ILTD Term Sheet, the “investment return on the deposit is based upon the participation rate multiplied by the average return of the S&P/TSX 60 Index over the term of the deposit. The average is calculated by adding the monthly averaging date closing values for the S&P/TSX 60 Index between the first valuation date and the maturity date and dividing that total by the months in the term. That average is then compared to the starting level of the S&P/TSX 60 Index at the close of business January 7, 2021. The investor will receive the percentage difference between the average and the starting value, multiplied by the participation rate.”

For the 5 year Nov-Dec 2020 series above, the monthly average closing values has been 1,180.84 or 110.14 higher than the opening strike value of 1,070.40 and represents an increase of 10.2895%, multiplied by the 125% participation rate and the return in the first 9 months has been 12.86188% as shown above.  Similarly, the 3 year Nov-Dec series has the same 10.2895% increase but with a lower participation rate of 75%, its’ return 7.71713% over 9 months.

While past performance cannot be an indicator of future performance, it’s also said that over the long term, stocks generally yield higher returns than fixed income investments. Since it’s difficult to time the market, Index-Linked Term Deposits is a safer way to invest in the stock market since your principal is 100% protected.

Talka has proved links to the Central 1 website so that members can check the performance of their own ILTD’s each month by using the link below. Since the monthly averaging date used is on or around the 11th, these ILTD calculations are generally available on or before the 15th of the month.

Student Bursary Awards

Talka Credit Union takes great pride in helping our young members obtain success in both their education and financial endeavours and we are now accepting applications for 2022 which are due on or before January 31st, 2022. Check our website for more details on how to apply.