Enhanced Interest Rates for BCNPHA PIE Member Support ProgramPosted
For many years PIE (Pooling for Increased Earnings) has delivered outstanding value to BCNPHA members. The extra interest earned by non-profit housing societies has often been worth far more than annual membership dues. The PIE program with Vancity Savings Credit Union has been enhanced to increase interest rates to members.
Vancity, as a committed partner in this program, worked together with BCNPHA, CHF BC and the United Community Services Co-op. Together we agreed to aggregate our collective pools to enhance our negotiating potential to increase member benefit and the combined volume of deposits is now over $60 million.
The current member portion of interest paid from the pool has been increased from 0.19% to 0.6% from 1st July 2009. Pooled interest rates rose to Vancity prime minus 1.65% from Vancity prime minus 2.057%. This will increase as interest rates go up and the volume of our combined pools grow.
In order to effect this positive change, BCNPHA decreased their receipt of sponsorship payments from Vancity to enable greater interest to be payable to members. Service charges on standard transactions are only one account per society, regardless of the number of pooled accounts. Societies with less than 50 housing units will pay service charges of $10 per month, and societies with 50 and over housing units will pay $20 per month. All other interest bearing accounts we investigated had significant service charges and resulted in potentially lower benefits to pool members; the pooled interest rates far outweigh the changes in service charges. These changes will be in effect until prime stabilizes or until our combined pool sees a growth sufficient to move us to a higher rate of interest.
This improvement in PIE rates builds on our longstanding relationship with Vancity, and on our partnerships with likeminded organizations who understand the benefits of cooperation.
Conversations continue with Coast Capital Savings Credit Union around PIE and other initiatives from their wide range of non-profit banking options to offer enhanced banking to BCNPHA members.Back to News