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There are some excellent threads on this forum talking about using the TFSA as an emergency fund but I haven't found one that answers my question. If you've decided on cash fund, in a low risk account where access is easy, then what kind of product are you using?

For example, Four Pillars has previously posted that he's using an ING account, but if we're going just by high interest savings account rates, then wouldn't Canadian Direct Financial or Peoples Trust are a better choice at 3%?

Thanks,
Edward
 

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I like to keep things simple. I have been with RBC for years and it's easy to move money around in online banking when the TFSA is with them also. I believe they're paying around 1.25% right now.

Rates as high as what you're talking about are probably teaser rates. In fact, I have never even heard of those places you mention. I am hesitant to simply hand over $15K of my money to an institution I am not familiar with and will have to navigate the typical call center nonsense in case of problems.

Besides, if top rates are your goal, then maybe a cash balance in your TFSA isn't really for you?

If this is your emergency fund I would recommend you be a bit careful with playing games with it. Its main benefit is its existence, not its growth or interest potential. IMO.
 

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Rates as high as what you're talking about are probably teaser rates. In fact, I have never even heard of those places you mention. I am hesitant to simply hand over $15K of my money to an institution I am not familiar with and will have to navigate the typical call center nonsense in case of problems.
I understand the hesitation of a new institution but your additional comments have a hint of ignorance to them -- I mean, you've already associated a typical call center nonsense to an bank that you've never heard of. These comments don't really contribute to this thread and are not that helpful. For the curious, sites like RedFlagDeals lists the various TFSA Saving Accounts and already discuss the pros and cons of each institution.

Besides, if top rates are your goal, then maybe a cash balance in your TFSA isn't really for you?

If this is your emergency fund I would recommend you be a bit careful with playing games with it. Its main benefit is its existence, not its growth or interest potential. IMO.
Thanks, but this is reiterating what's already been said in other threads regarding saving or investing with the TFSA. I would like to specifically focus on saving cash for emergencies in a TFSA High Interest Savings Account.

Specifically, if you have two difference banks, both offering the same product and all things being equals except one has a higher interest rate, then why would you even bother with the lower rate for cash that will be sitting around?

You've mentioned simplicity of staying within the same institution since you don't trust HISA rates but is there anything else?
 
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