Author Topic: How to grow $7000 in 4 months  (Read 3097 times)

Swansong

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How to grow $7000 in 4 months
« on: September 03, 2017, 11:24:39 AM »
I am a 3rd year Canadian business student studying at an American university. I currently have CA $7000 (about US $5,500) of interest-free loans sitting in my bank account that I won’t need to start spending until January 2018. My tuition for this semester has already been paid, and I have enough money saved up from my summer job to cover rent and cost of living until January 2018. My loans remain interest-free until after I graduate, so they won’t start actively burning a hole in my pocket for at least 2 more years.

Are there any good ways for me to grow the CA $7000 within a 4 month timeframe, or should I settle for the mediocre 0.65% * 4/12 months interest rate that is being offered by my savings account? My appetite for risk is pretty low in this scenario because I will need to cash out in January when my tuition is next due.

TL;DR is there a smarter way to hold CA $7000 for 4 months than sticking it in my savings account?

branman42

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Re: How to grow $7000 in 4 months
« Reply #1 on: September 03, 2017, 12:37:43 PM »
Ally offers 1.05% rate, and a few other banks offer better returns. Because of your low appetite for risk and very very short time horizon, the bank account is the best choice.

Heckler

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Re: How to grow $7000 in 4 months
« Reply #2 on: September 03, 2017, 02:02:28 PM »
Since its $C, I would put it in a TFSA and use an interest bearing savings account.  The TFSA will tax shelter the mediocre interest - otherwise you'll be claiming the interest as income at tax time.  Question is though- are you a Canadian resident for tax purposes? 

Rubic

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Re: How to grow $7000 in 4 months
« Reply #3 on: September 04, 2017, 09:31:43 AM »
You can park up to $15K at Lake Michigan Credit Union with
a 3% rate:  https://lmcu.org

Here are the criteria to qualify for the 3% rate in an LMCU Max Checking account:
  • Sign up for e-statements.
  • Minimum of 4 logins to online banking per month.
  • Minimum of 10 debit card purchases per month.
  • Direct deposit in your account at least once per month.
I have my LMCU account linked to Mint.com, which handles the minimal
required logins.

On the first Monday of each month, I reload my Amazon gift balance
with ten purchases of $0.50 each for a total of $5.00 to satisfy my debit
card requirement.

I also transfer $5 each month from my primary checking account into LMCU via
an automated ACH transfer which counts as a direct deposit.

The entire process takes less than 10 minutes each month after you've
got your account set up.  LMCU has a nice link on your account page to
confirm you've met all the requirements to qualify for the 3% rate.

Jeferson

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Re: How to grow $7000 in 4 months
« Reply #4 on: September 10, 2017, 02:30:47 AM »
I agree with the rest of the money moustache folks, the best and most safer option seems for you a bank. If you would be able to risk, many more possibilities open for you.
Why do people think that my name is Jeferson?
 Read my trading journal

smallstache

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Re: How to grow $7000 in 4 months
« Reply #5 on: September 10, 2017, 03:06:02 AM »
Why take out a loan that you don't need yet? I understand that the interest rate is zero for the time being, but so?

So what if you can "grow" it? Over for months, you will only get $23 of income for every 1% of yield.

the_grillman

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Re: How to grow $7000 in 4 months
« Reply #6 on: September 10, 2017, 06:24:28 AM »
The best thing you can do is stick it in a high interest savings as others have said.  What confuses me though is that they are suggesting USD accounts while you said it is in CAD.  Banks in Canada will give better rates anyways.

Since this is short term, I'd suggest going for promotions.  Two suggestions are:

Tangerine: Use a referral link (PM me for mine, I'd share part of my cut with you) and get $50 for $100 deposit
Open savings get 1.9% for 6 months.  Open Savings + Checking & get 2.4% for 6 months (note that their regular rate is rather low compared to other HISA options)

Oaken: Open a short term GIC at 2-2.15% (depending on exactly how many days you can lock in)

You could also look at trying to 'churn' referral/new account bonuses if you are willing to play that game.

TheAnonOne

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Re: How to grow $7000 in 4 months
« Reply #7 on: September 12, 2017, 10:26:29 AM »
Throw it in the stock market and pray.

smallstache

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Re: How to grow $7000 in 4 months
« Reply #8 on: September 14, 2017, 06:32:37 AM »
Throw it in the stock market and pray.

Invest it in a Vegas stripper party.  Oh the memories!

VoteCthulu

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Re: How to grow $7000 in 4 months
« Reply #9 on: September 15, 2017, 12:56:15 PM »
If I was going to Vegas with 7 grand, I'd put it all on red. Then I'd fulfill my dream of doing two chicks at the same time :)

TheAnonOne

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Re: How to grow $7000 in 4 months
« Reply #10 on: September 15, 2017, 04:04:36 PM »
If I was going to Vegas with 7 grand, I'd put it all on red. Then I'd fulfill my dream of doing two chicks at the same time :)

Put it all on 0, at 35 to 1  you would be pretty happy.

JAYSLOL

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Re: How to grow $7000 in 4 months
« Reply #11 on: September 15, 2017, 11:35:46 PM »
The best thing you can do is stick it in a high interest savings as others have said.  What confuses me though is that they are suggesting USD accounts while you said it is in CAD.  Banks in Canada will give better rates anyways.

Since this is short term, I'd suggest going for promotions.  Two suggestions are:

Tangerine: Use a referral link (PM me for mine, I'd share part of my cut with you) and get $50 for $100 deposit
Open savings get 1.9% for 6 months.  Open Savings + Checking & get 2.4% for 6 months (note that their regular rate is rather low compared to other HISA options)

Oaken: Open a short term GIC at 2-2.15% (depending on exactly how many days you can lock in)

You could also look at trying to 'churn' referral/new account bonuses if you are willing to play that game.

Yeah, I would go the tangerine route if I were you. 

smallstache

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Re: How to grow $7000 in 4 months
« Reply #12 on: September 17, 2017, 03:55:31 PM »
If I was going to Vegas with 7 grand, I'd put it all on red. Then I'd fulfill my dream of doing two chicks at the same time :)

Trust me, this activity is more difficult than you think.

Swansong

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Re: How to grow $7000 in 4 months
« Reply #13 on: October 22, 2017, 06:41:42 PM »
Thanks everyone, I really appreciate the thoughtful responses. I tried Tangerine a few weeks back but unfortunately they wouldn't open an account for me while I'm outside of the country. Looks like I'll be sticking with my boring interest rate for now

MrThatsDifferent

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Re: How to grow $7000 in 4 months
« Reply #14 on: October 22, 2017, 06:52:31 PM »
If you had put in bitcoin you would have doubled it almost by now.