Td Canada Trust review: one of the foundational roles of a bank is to pay interest on deposits. What are the best ones out there? This post may contain affiliate links. I’m going to be in this position in a couple months. They are covered by CPIF (Canadian Investor Protection Fund) up to $1 million if your brokerage is a member of the CPIF. Even if you’re earning less than 1% right now, having lots of cash available in an uncertain market may lead to exceptional 5 or 10 year returns if the market completely tanks and you have your capital ready. This time, I’m doing it a bit differently, and I have been putting some money into my investment portfolio to trade but the bulk of it is in high interest savings account spread among Motive Financial, EQ Bank, and LBC Digital Bank (the latter I would not recommend). TD Investment Savings Account TDB8150 (0.25%) RBC Investment Savings Account Series A RBF2010 (0.25%) BMO Investorline Investment Savings Account AAT770 (0.25%) The brokerages above consider these to be deposits and not mutual funds, but Questrade views them as a mutual fund and hence charges a $9.95 fee. In comparison, the high interest savings investment fund takes one day to settle. I thought about buying a high interest savings ETF with the cash I have in my investment account, but decided against it since I have some limit orders that are on standby and I don’t want there to be not enough money available for the trade if it is all tied up in the high interest savings ETF. Scotia itrade should have something similar. In April 2013, all were offering a 1.25% interest rate except BMO AAT770 which was offering 1.27% and ICICI which was offering 1.2%. Eventually I just bit the bullet and invested most of it in larger chunks, but it took me a long time to take the action to do that. And yet Canadians are parking their cash in money market funds. I didn’t want to put it in a high interest savings account because I didn’t want to wait so long for it to transfer from my high interest savings account to my discount brokerage. Face Covers back in stock - $28/3 pack, [123Ink.ca] Please see genymoney.ca’s disclaimer for more information.
Does Checking Your Credit Score Lower It? how about tdb8150? The 1 year return is 1.07%. Check out Purpose High Interest Savings ETF: PSA, "investing in high interest deposit accounts", "Exposure to high-quality short-term debt securities".
Even though the interest rates are paltry, according to the IFIC, the Investment Funds Institute of Canada, Canadians had $27.5 billion sitting in money market funds in 2018. I've always had in in ING/Tangerine as it was easy to move in and out but they are only paying 0.65% and considering the banks hikes of .75 in the last year, you'd think some of that would go to us. There zero dollar purchasing ETF commission costs with Questrade (only when you sell, and even then it is $4.95). Eclectic12 wrote: ↑ 06May2020 20:49 Some recent buys of TDB8150 I have made in my NR cash account are $183.34 and $142.69, where the initial $1K purchase was several years ago. Alternately, with Questrade you could also have your  money in a high interest savings account earning higher interest and being CDIC protected,  and just move small portions over to your investment brokerage at a time. Yes, that’s true. https://products.purposeinvest.com/fund ... vings-etf/, https://www.blackrock.com/ca/individual ... -en-ca.pdf, https://documents.purposeinvest.com/Fun ... %20ETF.pdf, http://www.canadiancapitalist.com/high- ... t-brokers/, [Google.com] With Questrade, there are no commissions charged when you purchase an ETF, only commission charged when you sell an ETF. Since I am with Questrade, I’m going to stick with using high interest savings accounts and transferring money over when I need it. As mentioned, you can purchase a high interest savings ETF. For all other CD disclosure documents, the review covers a period of approximately 12 to 15 months. Unfortunately, for Questrade though, if I were to put cash into a high interest savings account within the brokerage, I would have to pay Questrade a fee of $9.95 to buy and $9.95 to sell because it is considered a mutual fund. What are the Risks and Benefits of High Interest Savings ETFs? This site uses Akismet to reduce spam. Learn how your comment data is processed. The incentive to put more of it in the market and at least get a 5% Canadian bank dividend yield is just so tempting! Member Aug 30, 2012 113 posts 3 upvotes Whitby . There are different options of what you can do with the short term cash in your investment portfolio to earn some interest. How to Transfer Money from Your BMO Bank Account Into Your InvestorLine Non-Registered Investment Account, How to Contribute Cash to a BMO InvestorLIne TFSA from a BMO Bank Account, How to Redeem Your IHG Points Before They Expire If You Do Not Have Many. I like to park my currency in real money like gold or silver using an ETF. Sign up for the 22,000+ word Young Money Bootcamp eCourse. 1k, no commissions on buying or selling. One downside to the high interest savings ETFs is that they are not as liquid as an investment fund. I'm with CIBC which has ATL5000 (CAD) and ATL5500 (USD). I will keep a bit of money to invest in the account anyway which will be enough to invest without going overboard. I suppose to steer their customers towards their own products, the high interest savings investment funds.

It seems that those high interest savings ETFs when considering the MERs, you’re ranging from 0.5% to a little over 1.5%; whereas HISA through banks (ie. Where to Stash Your Cash in the Investment Portfolio. RGB Gaming Mouse Pad, 7 LED Colors, 300*800*4mm - Moustache® - $14.99. And of course not to forget the long arms of the tax man who will erode those paltry returns between 30-50% depending on marginal tax rates! As you, I want to take advantage of the sweet dividends while the stocks are still on sale.

Don’t forget to subscribe for blog updates and a free dividend yield spreadsheet. The settlement period of these funds is the transaction day plus one day, so it’s pretty quick. @Maria- I think High Interest Savings ETFs make sense for investors who trade more often or watch the markets more closely, and who want cash to deploy quickly. Too bad I didn’t have access to high interest savings ETFs at that time. Detailed price information for TD Canadian Money Market Fund - Inv - NL (CADFUNDS: TDB164.CF) from The Globe and Mail including charting and trades Another benefit of the high interest savings ETFs is that they have a higher interest rate and much lower MERs compared to money market funds. RedFlagDeals for iOS and Android makes it easy to stay on top of the latest Canadian deals, flyers and freebies from wherever you are! In summary, I think that if you have a brokerage like Questrade that charges for mutual fund transactions (high interest savings investment funds) you may be better off using a high interest savings ETF.

These accounts may have high minimum deposit requirements and pay a conservative rate. I have an DIY investing confession. Thanks for all this info.

how about tdb8150? All rights reserved.

1k, no commissions on buying or selling. blog updates and a free dividend yield spreadsheet. After all, I’m no day trader or anything.

The rates aren't great at around 1.6-1.7% but it is simple, the minimums are low, and you can get in and out quickly.

If you are with a big bank brokerage and you have access to free high interest savings investment account purchases, you’re better with that to keep your short term portfolio money in there (though it is only ‘earning’ 0.25%) but for longer term cash positions and holdings, I would probably stick to a high interest savings account and move money over when I am ready to invest the cash. td investment savings account @1.6% right now ? Wealthica Review: A Canadian Version of Personal Capital? A money market fun is very liquid.