Where to park money in Canada in interest bearing account?

[poorboy]

For the first time in my career there is a little extra cash that I need to put somewhere for a year. Would like to collect interest and be zero risk. This is in Alberta, Canada.

Are there any savings accounts or T bill accounts or ?? that pay 5% or better?

Never had extra money that is not ear marked for something else. Real novelty.

[Herc]

Get quote on GIC from ur bank. Be over 5% for sure.

[Guest]

4.95 one year redeemable, anytime after 30 days, full interest paid , 5.25, 5 year,

[mcfarms]

For the first time in my career there is a little extra cash that I need to put somewhere for a year. Would like to collect interest and be zero risk. This is in Alberta, Canada.

Are there any savings accounts or T bill accounts or ?? that pay 5% or better?

Never had extra money that is not ear marked for something else. Real novelty.

Tonights GIC rates via RBC Direct. For a 1 year annual.
If I'm doing GIC's if I'm doing more than 100 k at a time I'll split it up with a different provider, watch out for fees some banks are higher to purchase than others .


B2B BANK Dec 28, 2023 Annual 4.69
ROYAL TRUST CORP Dec 28, 2023 Annual 5.00
BANK OF NOVA SCOTIA Dec 28, 2023 Annual 5.00
BMO MORTGAGE CORP Dec 28, 2023 Annual 5.00
ROYAL TRUST COMPANY Dec 28, 2023 Annual 5.00
RBC MORTGAGE CORP Dec 28, 2023 Annual 5.00
ROYAL BANK OF CANADA Dec 28, 2023 Annual 5.00
RBC 30D CASHABLE Dec 28, 2023 Annual 3.80
RBMC 30D CASHABLE Dec 28, 2023 Annual 3.80
EFFORT TRUST Dec 28, 2023 Annual 5.00
FAIRSTONE BANK Dec 28, 2023 Annual 4.00
GENERAL BANK OF CDA Dec 28, 2023 Annual 4.85
EQUITABLE BANK Dec 28, 2023 Annual 4.99
CANADIAN TIRE BANK Dec 28, 2023 Annual 3.70
BANK OF MONTREAL Dec 28, 2023 Annual 5.00
CDN WESTERN TRUST Dec 28, 2023 Annual 4.60
CDN WESTERN BANK Dec 28, 2023 Annual 4.60
LAURENTIAN BANK Dec 28, 2023 Annual 4.69
KEB HANA BANK CANADA Dec 28, 2023 Annual 4.50
MANULIFE BANK CDA Dec 28, 2023 Annual 4.55
LBC TRUST Dec 28, 2023 Annual 4.69
HOMEEQUITY BANK Dec 28, 2023 Annual 4.10
HSBC BANK CANADA Dec 28, 2023 Annual 4.70
ICICI BANK CANADA Dec 28, 2023 Annual 4.63
HOME TRUST COMPANY Dec 28, 2023 Annual 5.00
VERSABANK Dec 28, 2023 Annual 4.70
PEOPLES TRUST Dec 28, 2023 Annual 4.60
VANCITY CREDIT UNION Dec 28, 2023 Annual 4.75
SBI CANADA BANK Dec 28, 2023 Annual 4.20
MONTREAL TRUST CDA Dec 28, 2023 Annual 5.00
MANULIFE TRUST CO. Dec 28, 2023 Annual 4.55
NAT'L BANK OF CANADA Dec 28, 2023 Annual 5.05
NATCAN TRUST COMPANY Dec 28, 2023 Annual 5.05

[Richard5]

Is this going to be savings in a personal name or in a corporation. If in a corporation be careful as i think there’s some kind of rule that once you earn more than 50,000 that you lose some of your business limit the following year.

If in personal name, interest is the highest tax of all investment options, consider a portion in in dividend paying stocks like Enbridge, Emera of Fortis. You don’t pay much tax on the eligible dividends they payout

[mcfarms]

Is this going to be savings in a personal name or in a corporation. If in a corporation be careful as i think there’s some kind of rule that once you earn more than 50,000 that you lose some of your business limit the following year.

If in personal name, interest is the highest tax of all investment options, consider a portion in in dividend paying stocks like Enbridge, Emera of Fortis. You don’t pay much tax on the eligible dividends they payout

What you are referring to is the passive income rule where for every dollar of passive income ( investment land rent etc) over 50 k the small business deduction is reduced by 5 dollars.

[jazz]

I dont like GICs because that ties my money up for a period of time and you never know in this business when you need it.

So I stay in stocks. BNS, ENB, BCE, TRP, CM all paying more that 6% dividends right now. And you can borrow against a stock portfolio if you need to.

But I think corporate bonds would pay more than a GIC these days.

[Guest]

Don't forget to keep a few Bordens under the mattress somewhere

[mcfarms]

[Unless he =jazz;556960]I dont like GICs because that ties my money up for a period of time and you never know in this business when you need it.

So I stay in stocks. BNS, ENB, BCE, TRP, CM all paying more that 6% dividends right now. And you can borrow against a stock portfolio if you need to.

But I think corporate bonds would pay more than a GIC these days.[/QUOTE]
He's looking for safety
One year ago bns was at 89.55 where's it at today? It's paying a 6 percent dividend but it's stock value is down 25 percent. Bank stocks have all been under pressure the last 6 months if he's doing anything in the markets with this volatility and being someone who hasn't traded this is probably either a real good time or a really, bad time to be trading for the first time. Maybe a percentage into a bank etf or a dividend etf. But it's not what he asked for he asked for safety and a 1 year term. That's a gic, corporate bonds are rarely a 1 year and what your are most likely doing there is buying the remaining term of a longer term one at a discounted par value. More liquid but probably not for a rookie. Even anything without some inflationary protective measures will leave you with less real purchasing power in a year with inflation running where it is especially .
Also if you are unincorporated and you do not have tfsa it may be a good time to utilize unused contribution room there and shelter the gain. But learn the rules of that program because people can get themselves offsides there as well.

[foragefarmer]

I dont like GICs because that ties my money up for a period of time and you never know in this business when you need it.

So I stay in stocks. BNS, ENB, BCE, TRP, CM all paying more that 6% dividends right now. And you can borrow against a stock portfolio if you need to.

But I think corporate bonds would pay more than a GIC these days.

He said he only wants to put it there for a year, the stocks you mention are the buy and hold type. They could easily drop in value in 2023, way to much of a risk over a time period of a year.

Your borrowing idea against your stock portfolio at todays rates with the chance your stock portfolio could go down in value within a year would be a double hit on your initial principle.

No wonder you lost money on condos and trading the US$ and CAN$.

Poorboy, mcfarms has provided you with some good advise.

One other thing to consider is you'll probably pay appox 40% income tax on the interest earned on a GIC if it's under a personal account.

[SASKFARMER]

pay off debt if it’s high interest.

buy cheap assets.

why only one year?

[jazz]

You all farm but you have a weird way of looking at risk. You let $500K in inputs sit out in the weather for 6 months and dont think twice. Anyone that farms shouldnt be afraid of the stock market.

All your crops prices are less than what they were a year ago, do you cower in the corner when canola drops $5.

And real inflation is running at double digits, even a GIC is losing money.

Econ 101. Want a nice return for 2023, buy oil.

[shtferbrains]

4.95 one year redeemable, anytime after 30 days, full interest paid , 5.25, 5 year,

Is that what they refer to as a personal redeemable?
Redeemable means 30 day min?
Does interest change if cashed early?

Or cashable?

Can anyone explain the difference?

[rodd]

Is this going to be savings in a personal name or in a corporation. If in a corporation be careful as i think there’s some kind of rule that once you earn more than 50,000 that you lose some of your business limit the following year.

If in personal name, interest is the highest tax of all investment options, consider a portion in in dividend paying stocks like Enbridge, Emera of Fortis. You don’t pay much tax on the eligible dividends they payout

It is 90/10 rule. 90% of net worth must be farm related. So if cash is over 10% do something, but there is leeway, say just holding it to buy inputs after year end. I think this is how accountant explained it to me.

[Guest]

I dont like GICs because that ties my money up for a period of time and you never know in this business when you need it.

So I stay in stocks. BNS, ENB, BCE, TRP, CM all paying more that 6% dividends right now. And you can borrow against a stock portfolio if you need to.

But I think corporate bonds would pay more than a GIC these days.

these redeemable at 4.95 are completely redeemable after 30 days and any time after for the year . interest is paid up to date of withdrawal