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I'm with TD Waterhouse and just wondering where I should park my cash before I buy other things.

If I'm buying efunds I may just go ahead and do that, but if I am buying stocks I don't want to put, say, $800 into a stock (it's not enough money yet...)

So, where do you park it in the meantime? Buy an eFund temporarily or something else? The eFunds do have the 90 day window, although it's also not like I am going to be taking out regularly. HOWEVER, if I do regularly put dividends into the eFunds, I could more easily lose track of that 90 day window...
 

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How much cash?

I typically leave anything I want to mobilize in an instant simply in 'high' interest savings that can move a the click of a button. When not available, like in registered plans, I let it collect nothing since I highly prize/value the liquidity.
 

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Depending on the amount, there are MFs that can be bought that are really HISA deposits with a Canadian bank paying 1.5% or so each month. Just make sure you've checked out which ones will charge an early redemption fee and which ones don't.

There's a bunch of threads about this but my search parameters aren't finding them.

Here's what I was able to find quickly using Google:
http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/


Likely a search with the name of the account will find the CMF threads.


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Good point CC about the posting being dated.

The CMF search wasn't finding the latest threads that indicated this and in my rush to be at a meeting, used Google.

Aren't you glad that Google has your dated post, up front of their search? :rolleyes2:


Cheers
 

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I'm in the same boat Kaitlyn.

In my Waterhouse account in registered plans I don't see a good alternative to HISA available.

So if I have cash more than $5K I'm parking it in bond ETFs. XBB, CBO, XLB.

Not as liquid as leaving in cash but for 10 bucks I can move it out if I need to.

If less than $5K I leave it alone.
 

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I'm in the same boat Kaitlyn.

In my Waterhouse account in registered plans I don't see a good alternative to HISA available.
Yes, there is. It is called TD Investment Savings Account that can be purchased with mutual fund code TDB8150. Pays 1.25%. No cost to buy or sell and no minimum holding periods. Minimum investment is $1,000. A couple more that I mentioned in the following post are also available.

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/

I would not park cash in a bond ETF. They may be low risk but bonds do fluctuate in value and are not a suitable replacement for cash.
 

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Nice. I wish Questrade had something like that (crosses fingers hoping someone actually knows of such a high-interest savings account available with Questrade)!
 

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Nice. I wish Questrade had something like that (crosses fingers hoping someone actually knows of such a high-interest savings account available with Questrade)!
Questrade used to pay interest on cash balances.
Due to the economy, they no longer provide interest on cash balances.

I would assume when the economy picks up again, they will reintroduce this.
 

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^^^^

This idea might be fine for a TFSA - assuming one has room to withdraw and re-contribute (or wait until Jan 1st, 2013 to re-contribute).

I'm not so sure it's worth the effort for an RRSP. A withdrawal will have a tax bill associated with it.


One could request a transfer ... but the last time I did an "in-kind" RRSP transfer, that took a couple of months. If a stock looks good, even a short RRSP transfer of a month is IMO, not worth it.


Of course if it is new cash that is being contributed, the PCF TFSA is currently paying 1.4%, with a small anniversary bonus, if the average balance is over $1K.
http://www.banking.pcfinancial.ca/a/rates/tfsaRate.page?refId=sidenav

Cheers
 

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Nice. I wish Questrade had something like that (crosses fingers hoping someone actually knows of such a high-interest savings account available with Questrade)!
It's a specialised Money Market Fund so I'm not sure why Questrade wouldn't offer one or more of them. It might have a holding period and might have a fee for buying, though.

Questrade's web site under the "Questrade's Mutual Funds" -> "Manulife Financial" list MIP510-MANULIFE BANK INVESTMENT SAVINGS ACCOUNT.


Cheers
 

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Yes, there is. It is called TD Investment Savings Account that can be purchased with mutual fund code TDB8150. Pays 1.25%. No cost to buy or sell and no minimum holding periods. Minimum investment is $1,000.
It appears that $1000 minimum does not apply to TD Waterhouse accounts.

I bought about $300 worth of TDB8150 in my TDW TFSA just the other month. It was the initial purchase. I never owned TDB8150 in that particular account.

I just tried to place a $100 order for TDB8159, a sister HISA fund of TDB8150. It went through just fine all the way to final order page (I didn't hit Submit). I backtracked and changed the amount to $99. I got an error about the minimum allowed.
 

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The four accounts (TDB8150 TDB8155 TDB8157 TDB8159) represent 4 separate entities for CIDC insurance purposes, so one person can hold $400k in insured HISAs (and 400k more in a joint account)
The $10 NAV also allows for margin flexibility similar to money market funds
 

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TD Investment Savings Account TDB8150

Fund is Open to New Investors
Initial Investment(s) $1,000
Subsequent Investment(s) $100
Initial RRSP Investment(s) $1,000
Subsequent RRSP Investment(s) $100
 

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One of the more recent developments has been the tendency of the various discount brokers to reduce their HISA funds to only their own in house.
In my Scotia iTrade account, I parked additional cash in TD Investment Savings Account – TDB8150.
That's right. The in-house Scotia iTrade Cash Optimizer only pays 0.65%, so ironically, I was forced to utilize Scotia's competitor, TD, within the my Scotia broker account.
 
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