Money Market funds or in an ISA? | Page 4 | General financial discussion | Discussion forum

there is one more detail:
TDB8150 is savings account
and
TDB2913 is mutual fund.
I read the interest will be taxed differently - is it true?
If so what is the difference?
Please comment on that,
Thank you!

The T3 slip will show the money market fund interest in Box 26 (Other income). That "other income" will be reported on a different Line 13000 than the regular bank account interest that is reported on Line 12100.

That's just a difference in reporting on the T1 General. Both Line 13000 and Line 12100 are included in one's Total Income and taxed the same.

Mutual fund yields will reflect the yield of the underlying money market instruments whatever they may be. In theory, yield could vary every day depending on what money markets are doing. and they will certainly vary month to month. That is simply the nature of the beast.

TDB2913 yield 5% already.
This is substantial.
Are there other money market funds offering higher yields?

Those BA rates are attractive but for most retail customers, it is far easier to let a MMF manager or a ISA bank rate manage a pool of such assets for a 10-20 bp MER. When Scotia DYN6004 already yields 5%, it is not worth my while to pursue another 10-20 bp of yield with individual holdings.... even if I was able to get them at institutional yields. Plus I have almost immediate T+1 liquidity.

CIB238 las night's yield: 5.01%.
This is 'last one standing' above 5% of what's available to me on TD DI.
This fund also requires initial investment >100k