Very short term - is there anything worth doing | General comparisons | Discussion forum

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Or . . . A 'High Interest Savings Account' where you bank,
or at one of these ⬇

https://www.highinterestsavings.ca/chart/

My Two Centavos,

Dean

P.S.
Welcome to 'The Club', Daithi ❗

I'm guessing from your post that you don't have an RBC e-savings account. If so, that's good. If you open one, you'll get 5.5% interest for 3 months:

https://www.rbcroyalbank.com/accounts/e-savings.html

It's RBC so you really don't have to worry about CDIC in this case. RBC isn't going anywhere in 3 months. Or 3 years (if they do, we have much, much bigger problems in Canada than missing money).

If you still need to park the $ after 3 months, then still at RBC you can open the 1-year prime-linked cashable GIC that Norman mentioned above. That way you don't have to move the money out to another bank. As Norman stated that GIC is currently paying 4.75% for a GIC up to $250k. By spring 2024 RBC prime might come down, but even if it does it should be small -- so maybe you'll get 4.5% or at worst 4.25% at the time. That's still better than any regular (non promo) HISA account out there that I know of.

I had asked a question a few months ago. Maybe some answers are relevant to you

https://www.highinterestsavings.ca/forum/gic/short-term-gic-options/

If I were you, I'll consider high interest saving account with a temporary promotion, or a cashable GIC

Unless the OP already has a brokerage account, there is not much sense in the OP taking the time to open a brokerage account and set up a EFT mechanism just to park cash for a short period of time of 2-3 months. It will take 5-10 days just to open and fund such an account.

I would look first to where the OP already has accounts in a big 5. Even a MMF at a bank branch where he already banks would provide something in the 4-5% range.

$200k @ 4.5% for 2.5 months = $1,875 BT

NorthernRaven said

Wealthsimple's Cash account also offers 5% to their Generation ($500K) customers, or Premium ($100K) who run their paycheque direct deposit through the account. The CASH.TO/PSA sort of ETFs have been getting gross rates well above 5% until recently, and even Scotiabank is willing to give out 5% to retail customers via their brokerage ISA (the non-trailer F series mainly for fee-based planners, but still what Scotia is paying out). Banks like Scotia/National/CIBC are willing to pay for bulk deposits, and there's a small but non-zero margin at 5%. You may see the rate reduce a bit from 5% at some point if the general interest rate environment is heading down. The ETFs yield has been dropping, but there's a separate regulatory issue involved there as well.  

All good points, but I personally don't but Koho in the same bucket as WealthSimple, Scotiabank, or CIBC. Koho's core business model is credit rehab. I don't see how they can sustain 5%.

Consider a TDAM Money Market fund (MMF) at your TD branch. A TDAM financial advisor should be happy to have you fill out an investment account application, complete the KYC form and voila..... 4.95%

For speed of doing and short time, it is not relevant whether you get 4.95% or 5.5% on your funds.

https://www.td.com/ca/en/personal-banking/personal-investing/products/mutual-funds/td-mutual-funds

https://www.td.com/ca/en/asset-management/funds/solutions/mutual-funds/FundCard/TD%20Canadian%20Money%20Market%20Fund%20-%20I/?fundId=9

With Tangerine, you can deposit funds to account with cheque, using Tangerine app on smartphone. There may be a limit on deposit amount, but you can write multiple cheques to yourself and deposit them in separate transactions.
Just make sure you deposit money to Savings (not checking), so that it collects interest while funds are still on hold.

You can order Tangerine checkbook, it should arrive by the time you need to move money out. Used to be first checkbook free, but I don't know if they still offer it. Still, for 6% interest and easy online account management a fee for a checkbook is nothing.

Just like it were said before, you can also make link to your TD account in Tangerine and transfer funds back and forth electronically. That service is free for Tangerine clients.

I would not go significantly over CDIC insurance limit with Tangerine Bank because it has no current ratings from the debt rating agencies like DBRS, S&P, and Fitch. Consequently, one does not know how much risk one is taking on with uninsured Tangerine Bank deposits.

It doesn't matter that Tangerine Bank is owned by Bank of Nova Scotia. Bank of Nova Scotia is not on the hook for the Tangerine Bank deposits unless it has guaranteed them. To date, Bank of Nova Scotia has not.

In the fixed income world, unrated debt is known as "junk bonds". Having $100,000 of the $200,000, needed to pay for a property on three weeks notice, in junk bonds is not a good idea.

It is unfortunate that the TD Canada Trust is the only bank close by, daithi. For $200,000, your TD Canada Trust branch may be willing to negotiate.

TD doesn't offer a cashable variable rate GIC. But, TD does offer a 1-Year Cashable GIC. The TD 1-Year Cashable GIC can be cashed anytime after 30 days of issue, in full or in part, without penalty. Posted rate is 3% (minimum $1,000), which matches the 3% (minimum $1,000) advertised special rate for RBC's 1-year fixed-rate cashable GIC.

However, RBC offers me an unadvertised 4% special rate (minimum $1,000) for that GIC through the GIC purchase pages of their RBC Online Banking. See what your TD branch can offer for a minimum $100,000 or $200,000 in a TD 1-Year Cashable GIC.