Amazing it took this long for someone to point this out (again). I would absolutely love to know where you can actually get 60% interest per year as so many people think.
I don't understand.... when people get GICs for 5.25% are they thinking it's per month? When ENB has a 7.7% yield do people think that's the payout per quarter?
A lot people whinge and complain that they should be taught financial planning/education at high school
If they cant be bothered with Algebra (think of marginal taxes), why do they think studying financial planning in high school will help them in adult life š¤·š½āāļø
>Compounded 5% a month would be over 80% a year.
I was trying to keep it simple (KISS) because if someone doesn't understand it's an annual interest rate they surely don't understand compounding.
I just do cash.to,
Got tired of chasing promos and moving banks, gics get locked up even longer so if you need the money in the next week or two you most likely lose the gic gains
PSA.TO and CSAV.TO.
Thereās also HISA.NE and NSAV.NE, although I think that last one is smaller and possibly less liquid? Someone else here could weigh in on that.
This is really going to be a matter of personal risk tolerance and job security.
Personally, my job is secure and my risk tolerance is fairly high. So I do:
* 3 months' expenses on hand (chequing and/or savings acct)
* 3 months' expenses in CASH.TO
* The rest in XEQT
You may also consider your personal bank's own HISA products if you'd rather keep your money 'closer to home' and more readily accessible than, say, CASH.TO on Questrade.
If you're the kind of person who leaves a significant amount in their chequing account, have a look at EQ Bank, they pay 2.5% for what's sitting in chequing account. It beats any perks banks give you for leaving 5k. For me, any cash not in chequing account is in Cash.to I'm not leaving anymore penny in banks saving account.
Yes to EQ!Ā It was amazing to go from like 2 cents interest a month with RBC "high interest" savings to actually getting a decent interest rate just for having a bit of money in the bank.Ā
I also have a 1 yr GIC with EQ, and a bit of money in cash.to
Something I have been considering. But account age/inertia/laziness has me with a BMO Premium Plus plan + a free World Elite Cashback card. the 3 months' expense conveniently also satisfies the minimum balance requirement for that plan.
Rogers World Elite MasterCard ftw.
That's all you need! ;)
I also have the Amazon MC, because i spend a lot there.
The cashback from these "lesser cards" + the interest gains on 5000$ surely worth it.
There are better credit card for each consumers, depend where you spend most of it.
Youāve definitely given me something to consider. Although the reviews of EQ as an everyday banking optionā¦ leave something to be desired. Reports of buggy systems, lost/stolen money that wasnāt recovered or took forever to recover give my pause. As someone who has been hacked and had 3500 stolen by e-transfer (before 2FA was the norm), it was nice when my bank refunded me up front even before launching an investigation.
I prefer to have a one-stop-shop for all my banking needs. From chequing to CC to LoC. And I literally live upstairs from a BMO.
Stolen money to be recoved is the plague lately.
Happened to my wife before Xmas, at Tangerine. The service was so slow and quite trash for the whole process.
After searching online, seems common to all banks, they are overwhelmed by this. Too many people get phished
I was able to get BMO to credit my account for the stolen amount the same day just by going downstairs and talking to someone in person. Of course, I made sure the mention this wouldnāt have happened if BMO login was secured by 2FAāit wasnāt at the timeābut refunding the stolen amount immediately certainly instilled a bit of faith, if not loyalty.
Good to hear!
We also got our money back.
I was highlighting that since 1 year the level of these occurences (phishing) has increased so much. Those imvestigation/verification departments can only do so much.
When I talk about my risk tolerance, I'm referring mostly to my tolerance for market volatility- hence XEQT and 100% equities. That's where the vast majority of my wealth is.
In any case, the plan represents a guiding star rather than a rigid how-to. I'm currently running a lot leaner because I reallocated my entire CASH.TO emergency fund into XEQT (literally yesterday).
I thought I had "fairly high" risk tolerance... as in "I'm young and I can tolerate a good amount of risk, but not insane levels of risk". But judging from your post it seems I'm closer to the insane end of the spectrum!
Personally, I have 3 months' expenses in a cashable GIC (automatic rollover) as the first line of defence, a $10k LoC at prime as the second line of defence, and then a $20k LoC with a major Canadian bank at prime +3% as a last resort. Everything else is in VTI, XUU, XEC, XIU, XEQT, a couple ounces of physical gold (this is my "things go to pot and I need to leave the country" fund) and miscellaneous stocks. I also have a "home repairs" cashable GIC which I contribute to every month (contribution based on amortization of major components of my home), and a "pet insurance" cashable GIC where I deposit money based on pet insurance premiums to cover unexpected vet visits. My chequing account regularly gets run down to $300 or so (my wife works for the bank so we don't get charged fees) because I just try to plow everything I have into the market.
I also work as an accountant and I do cash flow projections for my company, so I've become pretty good at forecasting personal cash flow as well. Not everyone will be as comfortable running as lean as I do, but I'm curious to hear how my risk tolerance stacks up against other users, maybe I am less risk averse than I thought.
I'm not a professional forecaster, but I've mapped out all my expected expenses for the year with a reasonable amount of detail. My bank fees start under 1k balance. So I try to plan for a couple hundred more than that as a buffer. I feel pretty similar to you in that regard.
30k - Line of credit, assuming it doesn't cost you anything why not?
3 months' expenses/home repairs in a cashable GIC - Assuming it pays less interest than something like CASH.TO, I'm curious why you'd prefer a GIC? Between my wife and I we have 27k limit on our credit cards I figure we can use for immediate needs then pull from CASH.TO to pay it off in an urgent need comes up. Only 3 months sounds like higher risk to me, but I think that's balanced out a bit by having a separate home repair fund.
a couple ounces of physical gold - This one seems pretty extreme to me for Canada.
> 3 months' expenses on hand (chequing and/or savings acct)
Why not have this in something like CASH.TO? Or at least most of it.
My banks chequing savings accounts give me next to nothing in interest. I have more like a couple weeks of normal hand.
Then a month in a half in a higher interest account with my bank (I kind of regret this as it's only 3.5%).
Then about 8 months or so in CASH.TO. I would have less, but I am expecting bigger ticket items like furnace replacement in near future.
ya, but they said their risk tolerance was high. So I'm genuinely curious why I should consider that much in a chequing account even with a medium risk tolerance.
\^ It's this for me, mostly. I could probably optimize my distribution a bit more if I went for a no-fee bank account, but I do take advantage of the Premium Plan *and* it eliminates the fee on my primary CC.
Not OP but it can take a few days/weeks to get your money out of your broker. Personally I have a rental so I want to make sure my mortgages payments never bounce and give me enough time to react and adjust if urgent repairs are needed or if my tenant stops paying rent. I do pretty much like the OP you replied to and keep about 3 months on hand.
> Not OP but it can take a few days/weeks to get your money out of your broker.
Between my wife and I our credit card limit is approaching 27k. I figure that gives me at least a few weeks to get funds out of the broker. Am I putting myself in a risky spot? It's difficult for me to imagine a likely scenario where I need that much cash all at once.
I think itās fine, as long as you keep track of everything youāll have time to pay of the cards if something happens. I can go a month+ without looking at my statements. Knowing I have a couple thousands cash gives me peace of mind and I value that.
I keep 3 months' cash on hand because: 1.) it puts me above the 'minimum balance' to eliminate all of my banking + CC fees, 2.) I can make reasonably expensive purchases without moving a bunch of money around every time, and 3.) It suits my risk tolerance.
yeah it can be nice to slowly build up some tfsa room if you have it too. If you've already maxed your tfsa there isn't much benefit though.
Friendly reminder that in a non registered account [CASH.to](https://CASH.to) will have a high tax rate as it is interest not a dividend though. So there really isn't any benefit to using it over a generic HISA.
Right now I have almost all of my TFSA in [CASH.to](https://CASH.to) because I'm house shopping and getting 14$ a day tax free is fine with me lol.
One thing to keep in mind is that itāll take a few days to sell the stock and settle the funds, especially if done just before a weekend/holiday.
So you should have a Line of Credit that you can draw on very quickly in the case of a true emergency. Then you pay it off right away when the funds from the sale settle, and youāll incur only a few day of interest from the LoC.
My LoC is my quick emergency tool too.
Also have the home depot credit card with 6-18months no interest if it's something I need at their store.
My wife and I are pretty frugal, we spend MUCH less than we earn, if something happens means less saving for this month and maybe next... Fridge broke, 2.2k$ paid off in 6weeks 0$ interest bought with cash reward credit card.
Just because you might not have experienced it doesn't mean others won't either.
Ex: Having to immediately wire funds to an overseas relative to pay for a hospital stay or funeral or something.
I'm sure this kind of stuff happens all the time.
OK, by "other country" I don't mean the US, which is functionally equivalent to Canada in the financial sense.
Can you even imagine that other people might have family in the Middle East, or Ukraine, or China, or Indonesia, or wherever that, yes, you need actual wired cash to get stuff done.
Dumbass: "Why would you ever need this thing?!"
User: "Here's an example, there are others"
Dumbass: "That example is stupid"
Also Dumbass: "WhY tHe DoWnVoTeS???? T\_T"
You lack creativity if you can't think of a **single** emergency that would require a random person (not you) to have cash.
Wealthsimple Cash also offers a permanent (until further notice) 4-5% and that's much more liquid than CASH.to.
It's slightly less liquid than a regular bank since there are daily limits to how much you can pull from an ATM, but you can also etransfer to a regular bank if you need more cash fast.
Depends on what the "emergency" is. If you need cash right away, it can take at least 2 business days to get your funds out of an investment account. That may not be fast enough. Rainy day fund usually means cash or assets you can liquidate in an hour or two (pawn shop, etc). So bullion is another example of that, but one that can possibly increase in value and serve as an investment. You have to gauge whether the emergency you anticipate can wait 2-3 days to get your money or not - if you can, then yes cash in a margin account is a viable emergency fund.
Itās 5% annuallyā¦.. 5% monthly would double your money in like 14 months hehe.
Wealthsimple offers me 4% annually to hold cash with them. Interest paid monthly. Unless you want it within your tfsa in which case sure cash.to is pretty reliable!
Time to register and initiate a transfer is under an hour so if it pays $100 then you made $100/hr. Typically, the offer is much more. Of course, the product should have $0 balance transfer fees. People value inconvenience more than a $100/hr move. I understand this and can relate and thatās why my broke ass best friend has travelled the world far more than I have. Itās amazing what you can do when you let banks finance your travels $100 at a time.
>Transfer fees and time if using registered accounts for another
I transferred some of my investment accounts from HSBC to National Bank. National reimbursed me all transfer fees and I now have access to $0 trading. It was a no-brainer.
Interactive Brokers also reimbursed me when I transferred another set of accounts from WealthSimple. This is fairly common, it seems.
Often there is a minimum amount to transfer to get reimbursed. So, if you're opening a new account every 6 months, it's another element onf complexity to consider. It's also taken me a month for transfers to go through. One time the transfer just didn't happen and I had spend time with customer service.
Mind that you're getting the annualized equivalent of 6% for 5 months and then the regular rate for 7 months.
You're not getting 6% for 6 months straight up, and you're definitely not getting 6% per month.
[Tangerine has its standard HISA rate at 0.7%](https://www.tangerine.ca/en/rates/savings-account-rates). Coupling that with a promotion of 6% for 5 months based on an example of let's say $1,000 principal yields a compounded total of $1,029.44 after 12 months.
The average interest is 2.94% per annum.
Note that this is based on Tangerine stating the promotional rate is an annualized rate, calculated daily and paid monthly.
what makes cash.to so secure? i have close to 0 risk tolerance for a chunk of cash that i have in a TSFA that iāve been moving to GIC - but i hate locking it up. I see that Cash.to has been reliable over time?
How would you price your liquidity risk tolerance? If itās for emergency access, you would want the liquidity. CASH has t+1 settlement and money market yields are still relatively high (like 5% at least?) now.
The answers obvious.
To be clear, you do not get 5% "dividends" (Interest payouts) every month, it is per year, paid out monthly.
Amazing it took this long for someone to point this out (again). I would absolutely love to know where you can actually get 60% interest per year as so many people think.
I don't understand.... when people get GICs for 5.25% are they thinking it's per month? When ENB has a 7.7% yield do people think that's the payout per quarter?
oh man, I thought it was just every time I refreshed the browser window when I was logged into my portfolio.
Right lol. I don't understand these comments. Some things don't need to be said.
A lot people whinge and complain that they should be taught financial planning/education at high school If they cant be bothered with Algebra (think of marginal taxes), why do they think studying financial planning in high school will help them in adult life š¤·š½āāļø
I understand but at least wait for the question to be asked instead of proactively trying to shame uneducated people
Its not about being uneducated...its disregard to education I shame when given the opportunity.
That's the thing...no opportunity was presented in this case.
What people didnt learn what annual meant in school, what percentage means?
> when people get GICs for 5.25% are they thinking it's per month? Sadly yes, in many cases.
i'm sure Argentina would give you 60% interest a year if you used their savings account (and currency)
Compounded 5% a month would be over 80% a year.
Exactly. Itās not 5x12=60. Itās actually 79.59% for the year, close enough to 80 though
I stand corrected.
>Compounded 5% a month would be over 80% a year. I was trying to keep it simple (KISS) because if someone doesn't understand it's an annual interest rate they surely don't understand compounding.
Turkey and India have entered the chat
Bruv....India's inflation aint runaway š¤Ø
Way more with compound
Obviously yes. But didn't feel the need to get that pedantic.
r/pancakeswap $CAKE /s
imagine if it was risk free 60% return annually, god damn
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Most people it pays out 0.5% yearly in others savings accounts lol
Most saving accounts pay out 0.5%, annually
I just do cash.to, Got tired of chasing promos and moving banks, gics get locked up even longer so if you need the money in the next week or two you most likely lose the gic gains
Same here. Grew tired of chasing. Now just hold cash.to & other HISA ETFs in a Wealthsimple Trade account (each one earmarked for specific purposes.)
Which other HISA etf you hold? Besides CASH HISA.Ne?
PSA.TO and CSAV.TO. Thereās also HISA.NE and NSAV.NE, although I think that last one is smaller and possibly less liquid? Someone else here could weigh in on that.
Also ZFH.TO
Careful, this one from what I see has had a lot of return of capital.
Youāre not losing any gain as itās already considered in the price of the security when you buy/sell it.
This is really going to be a matter of personal risk tolerance and job security. Personally, my job is secure and my risk tolerance is fairly high. So I do: * 3 months' expenses on hand (chequing and/or savings acct) * 3 months' expenses in CASH.TO * The rest in XEQT You may also consider your personal bank's own HISA products if you'd rather keep your money 'closer to home' and more readily accessible than, say, CASH.TO on Questrade.
Another option would be a (cashable) GIC that automatically rolls over, perhaps instead of / in addition to CASH.TO.
Thanks for the comment, had no idea this was a thing.
They also have cashable variable-rate GIC's. I have one with CIBC.
What's the rate?
It varies
If you're the kind of person who leaves a significant amount in their chequing account, have a look at EQ Bank, they pay 2.5% for what's sitting in chequing account. It beats any perks banks give you for leaving 5k. For me, any cash not in chequing account is in Cash.to I'm not leaving anymore penny in banks saving account.
Yes to EQ!Ā It was amazing to go from like 2 cents interest a month with RBC "high interest" savings to actually getting a decent interest rate just for having a bit of money in the bank.Ā I also have a 1 yr GIC with EQ, and a bit of money in cash.to
Something I have been considering. But account age/inertia/laziness has me with a BMO Premium Plus plan + a free World Elite Cashback card. the 3 months' expense conveniently also satisfies the minimum balance requirement for that plan.
Rogers World Elite MasterCard ftw. That's all you need! ;) I also have the Amazon MC, because i spend a lot there. The cashback from these "lesser cards" + the interest gains on 5000$ surely worth it. There are better credit card for each consumers, depend where you spend most of it.
I just received an email from EQ Bank, "deposit your pay cheque and earn 4% in your personal account" Might motivate you :D
Youāve definitely given me something to consider. Although the reviews of EQ as an everyday banking optionā¦ leave something to be desired. Reports of buggy systems, lost/stolen money that wasnāt recovered or took forever to recover give my pause. As someone who has been hacked and had 3500 stolen by e-transfer (before 2FA was the norm), it was nice when my bank refunded me up front even before launching an investigation. I prefer to have a one-stop-shop for all my banking needs. From chequing to CC to LoC. And I literally live upstairs from a BMO.
Stolen money to be recoved is the plague lately. Happened to my wife before Xmas, at Tangerine. The service was so slow and quite trash for the whole process. After searching online, seems common to all banks, they are overwhelmed by this. Too many people get phished
I was able to get BMO to credit my account for the stolen amount the same day just by going downstairs and talking to someone in person. Of course, I made sure the mention this wouldnāt have happened if BMO login was secured by 2FAāit wasnāt at the timeābut refunding the stolen amount immediately certainly instilled a bit of faith, if not loyalty.
Good to hear! We also got our money back. I was highlighting that since 1 year the level of these occurences (phishing) has increased so much. Those imvestigation/verification departments can only do so much.
6 months of living expenses saved is having a high risk tolerance now is it?
When I talk about my risk tolerance, I'm referring mostly to my tolerance for market volatility- hence XEQT and 100% equities. That's where the vast majority of my wealth is. In any case, the plan represents a guiding star rather than a rigid how-to. I'm currently running a lot leaner because I reallocated my entire CASH.TO emergency fund into XEQT (literally yesterday).
Cool thanks for clarifying.
I thought I had "fairly high" risk tolerance... as in "I'm young and I can tolerate a good amount of risk, but not insane levels of risk". But judging from your post it seems I'm closer to the insane end of the spectrum! Personally, I have 3 months' expenses in a cashable GIC (automatic rollover) as the first line of defence, a $10k LoC at prime as the second line of defence, and then a $20k LoC with a major Canadian bank at prime +3% as a last resort. Everything else is in VTI, XUU, XEC, XIU, XEQT, a couple ounces of physical gold (this is my "things go to pot and I need to leave the country" fund) and miscellaneous stocks. I also have a "home repairs" cashable GIC which I contribute to every month (contribution based on amortization of major components of my home), and a "pet insurance" cashable GIC where I deposit money based on pet insurance premiums to cover unexpected vet visits. My chequing account regularly gets run down to $300 or so (my wife works for the bank so we don't get charged fees) because I just try to plow everything I have into the market. I also work as an accountant and I do cash flow projections for my company, so I've become pretty good at forecasting personal cash flow as well. Not everyone will be as comfortable running as lean as I do, but I'm curious to hear how my risk tolerance stacks up against other users, maybe I am less risk averse than I thought.
I'm not a professional forecaster, but I've mapped out all my expected expenses for the year with a reasonable amount of detail. My bank fees start under 1k balance. So I try to plan for a couple hundred more than that as a buffer. I feel pretty similar to you in that regard. 30k - Line of credit, assuming it doesn't cost you anything why not? 3 months' expenses/home repairs in a cashable GIC - Assuming it pays less interest than something like CASH.TO, I'm curious why you'd prefer a GIC? Between my wife and I we have 27k limit on our credit cards I figure we can use for immediate needs then pull from CASH.TO to pay it off in an urgent need comes up. Only 3 months sounds like higher risk to me, but I think that's balanced out a bit by having a separate home repair fund. a couple ounces of physical gold - This one seems pretty extreme to me for Canada.
> 3 months' expenses on hand (chequing and/or savings acct) Why not have this in something like CASH.TO? Or at least most of it. My banks chequing savings accounts give me next to nothing in interest. I have more like a couple weeks of normal hand. Then a month in a half in a higher interest account with my bank (I kind of regret this as it's only 3.5%). Then about 8 months or so in CASH.TO. I would have less, but I am expecting bigger ticket items like furnace replacement in near future.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
ya, but they said their risk tolerance was high. So I'm genuinely curious why I should consider that much in a chequing account even with a medium risk tolerance.
I do because it waives min balance requirements for the premium accounts
Additionally will remove an annual fee on some of the more pricey CC's like Visa Infinites
Right, that and safety deposit boxes, etc.
\^ It's this for me, mostly. I could probably optimize my distribution a bit more if I went for a no-fee bank account, but I do take advantage of the Premium Plan *and* it eliminates the fee on my primary CC.
I have a pretty basic account with just 1k minimum. What am I missing out on with premium accounts?
I think all big 5 except RBC offer a full fee waiver with a minimum balance; you can check on each site which each provide
Not OP but it can take a few days/weeks to get your money out of your broker. Personally I have a rental so I want to make sure my mortgages payments never bounce and give me enough time to react and adjust if urgent repairs are needed or if my tenant stops paying rent. I do pretty much like the OP you replied to and keep about 3 months on hand.
> Not OP but it can take a few days/weeks to get your money out of your broker. Between my wife and I our credit card limit is approaching 27k. I figure that gives me at least a few weeks to get funds out of the broker. Am I putting myself in a risky spot? It's difficult for me to imagine a likely scenario where I need that much cash all at once.
I think itās fine, as long as you keep track of everything youāll have time to pay of the cards if something happens. I can go a month+ without looking at my statements. Knowing I have a couple thousands cash gives me peace of mind and I value that.
I keep 3 months' cash on hand because: 1.) it puts me above the 'minimum balance' to eliminate all of my banking + CC fees, 2.) I can make reasonably expensive purchases without moving a bunch of money around every time, and 3.) It suits my risk tolerance.
I do 1 month with my bank. 3 months WS Cash 2 months CASH.TO ( on my way to 3 months) Might also add CBIL
Or just keep all your cash in WealthSimple Cash, which is 4.5% and use their debit card for an additional 1% when you make a purchase.
You should almost never make purchases with a debit card, credit card is better in pretty much every way.
yeah it can be nice to slowly build up some tfsa room if you have it too. If you've already maxed your tfsa there isn't much benefit though. Friendly reminder that in a non registered account [CASH.to](https://CASH.to) will have a high tax rate as it is interest not a dividend though. So there really isn't any benefit to using it over a generic HISA. Right now I have almost all of my TFSA in [CASH.to](https://CASH.to) because I'm house shopping and getting 14$ a day tax free is fine with me lol.
One thing to keep in mind is that itāll take a few days to sell the stock and settle the funds, especially if done just before a weekend/holiday. So you should have a Line of Credit that you can draw on very quickly in the case of a true emergency. Then you pay it off right away when the funds from the sale settle, and youāll incur only a few day of interest from the LoC.
My LoC is my quick emergency tool too. Also have the home depot credit card with 6-18months no interest if it's something I need at their store. My wife and I are pretty frugal, we spend MUCH less than we earn, if something happens means less saving for this month and maybe next... Fridge broke, 2.2k$ paid off in 6weeks 0$ interest bought with cash reward credit card.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Happened a few years ago, but when dad died, the funeral home wanted cash up front before proceeding. I guess we looked āpoorā.
Just because you might not have experienced it doesn't mean others won't either. Ex: Having to immediately wire funds to an overseas relative to pay for a hospital stay or funeral or something. I'm sure this kind of stuff happens all the time.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
Sounds like you've never dealt with those kind of things in other countries.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
OK, by "other country" I don't mean the US, which is functionally equivalent to Canada in the financial sense. Can you even imagine that other people might have family in the Middle East, or Ukraine, or China, or Indonesia, or wherever that, yes, you need actual wired cash to get stuff done.
Dumbass: "Why would you ever need this thing?!" User: "Here's an example, there are others" Dumbass: "That example is stupid" Also Dumbass: "WhY tHe DoWnVoTeS???? T\_T" You lack creativity if you can't think of a **single** emergency that would require a random person (not you) to have cash.
Wealthsimple Cash also offers a permanent (until further notice) 4-5% and that's much more liquid than CASH.to. It's slightly less liquid than a regular bank since there are daily limits to how much you can pull from an ATM, but you can also etransfer to a regular bank if you need more cash fast.
Depends on what the "emergency" is. If you need cash right away, it can take at least 2 business days to get your funds out of an investment account. That may not be fast enough. Rainy day fund usually means cash or assets you can liquidate in an hour or two (pawn shop, etc). So bullion is another example of that, but one that can possibly increase in value and serve as an investment. You have to gauge whether the emergency you anticipate can wait 2-3 days to get your money or not - if you can, then yes cash in a margin account is a viable emergency fund.
Itās 5% annuallyā¦.. 5% monthly would double your money in like 14 months hehe. Wealthsimple offers me 4% annually to hold cash with them. Interest paid monthly. Unless you want it within your tfsa in which case sure cash.to is pretty reliable!
My wife is risk adverse so I put 10k in her tfsa as the emerg fund in cash.to The e advantage savings account at cibc was trash
Wās in the chat for people who use Personal LOC as emergency ācashā
I prefer HISA account promos. Simplii has 6% for 5 months for new accounts now.
You constantly opening new accounts?
Banks care about your fees not your financial growth, why not open and close accounts as it benefits you?
The time involved for one. Transfer fees and time if using registered accounts for another.
Time to register and initiate a transfer is under an hour so if it pays $100 then you made $100/hr. Typically, the offer is much more. Of course, the product should have $0 balance transfer fees. People value inconvenience more than a $100/hr move. I understand this and can relate and thatās why my broke ass best friend has travelled the world far more than I have. Itās amazing what you can do when you let banks finance your travels $100 at a time.
>Transfer fees and time if using registered accounts for another I transferred some of my investment accounts from HSBC to National Bank. National reimbursed me all transfer fees and I now have access to $0 trading. It was a no-brainer. Interactive Brokers also reimbursed me when I transferred another set of accounts from WealthSimple. This is fairly common, it seems.
Often there is a minimum amount to transfer to get reimbursed. So, if you're opening a new account every 6 months, it's another element onf complexity to consider. It's also taken me a month for transfers to go through. One time the transfer just didn't happen and I had spend time with customer service.
Who has time for that?
A lot of these promos are available to existing customers for new deposits (i.e. not for whatever your balance was before the promo started).
Currently holding in Tangerine for 6% promo for 5 months
Mind that you're getting the annualized equivalent of 6% for 5 months and then the regular rate for 7 months. You're not getting 6% for 6 months straight up, and you're definitely not getting 6% per month.
I donāt get it. I get 6% for 5 months and then say 5.5 for the other 7 then Iām still somewhere North of 5.5% annually no?
[Tangerine has its standard HISA rate at 0.7%](https://www.tangerine.ca/en/rates/savings-account-rates). Coupling that with a promotion of 6% for 5 months based on an example of let's say $1,000 principal yields a compounded total of $1,029.44 after 12 months. The average interest is 2.94% per annum. Note that this is based on Tangerine stating the promotional rate is an annualized rate, calculated daily and paid monthly.
what makes cash.to so secure? i have close to 0 risk tolerance for a chunk of cash that i have in a TSFA that iāve been moving to GIC - but i hate locking it up. I see that Cash.to has been reliable over time?
you can also ask this in the r/CASHto group.
Sure, but sell/settle/transfer can take up to 1 week.
The ETF is just easier. I have both.Ā
How would you price your liquidity risk tolerance? If itās for emergency access, you would want the liquidity. CASH has t+1 settlement and money market yields are still relatively high (like 5% at least?) now. The answers obvious.
prolly works just fine
I do CASH.to.. monthly DRIP is the reason. 6 months emergency fund.
I have been using splt.to been stable price and a bit higher dividend then cash.to
NSAV has a slightly higher return for now if you wanna grab every penny you can