Author Topic: Where to park $25,000 for a year (in Canada)?  (Read 681 times)

NorthernDreamer

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Where to park $25,000 for a year (in Canada)?
« on: April 25, 2017, 11:33:31 AM »
I have $25,000 that I will owe on taxes next year (for inheritance/estate stuff). I am nervous investing it in index funds for the next year in case the market tanks. I could keep it in my "high interest" 0.8% savings account with PC.

Should I look into a GIC? I'd need to get it in there ASAP. PC has a 1.4% GIC right now. Oaken Financial offers 2% but I've never heard of them. Any other options I'm missing? Would you suck it up and just put it in index funds?

NorthernDreamer

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Re: Where to park $25,000 for a year (in Canada)?
« Reply #1 on: April 25, 2017, 11:43:24 AM »
Oh gosh how do I get a moderator to delete two of these?

daverobev

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Re: Where to park $25,000 for a year (in Canada)?
« Reply #2 on: April 25, 2017, 12:13:11 PM »
For one year, the best high interest account you can find. NOT the market. Not even short term bonds.

Oaken is fine. As long as they are CDIC or provincially regulated (some of the credit unions), you're fine.

I just opened an account with EQBank, to get 2%. Not much, but better than PCF, as you say.
Amex Cobalt - 10x points at grocery stores in December!! This is amazing!

Great Canadian Rebates good extra sign up bonuses on credit cards, among other things.

Tangerine Orange Key: 48322202S1. I prefer Simplii (was PC Financial) to Tangerine, but you get $50 for signing up (and so do I).

PayTM - pay bills with your credit card. Like Plastiq, but currently a lot of stuff that Plastiq charges for is free. My code is PTM9691063, pay a $50 bill and we both get $10 in PayTM cash which you can use on the next bill. Good for min spend, at least.

Financial.Velociraptor

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Re: Where to park $25,000 for a year (in Canada)?
« Reply #3 on: April 25, 2017, 02:57:57 PM »
Oh gosh how do I get a moderator to delete two of these?

I hit the "report to moderator" link on your two dupes with explanation text that they were duplicate threads/please delete.  Should do the trick.  No more double-clicky for you!
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Mr. Rich Moose

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Re: Where to park $25,000 for a year (in Canada)?
« Reply #4 on: April 26, 2017, 08:13:44 PM »
Might be wise to slip EQ and some of those other alt lenders considering some of the financing issues that are happening right now with Home Trust.

You could go with BMO Super Short. ZST.TO

Basically money market bonds at a low fee. The history is a very straight trajectory, even compared to VSB.
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daverobev

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Re: Where to park $25,000 for a year (in Canada)?
« Reply #5 on: April 27, 2017, 06:58:55 AM »
Might be wise to slip EQ and some of those other alt lenders considering some of the financing issues that are happening right now with Home Trust.

You could go with BMO Super Short. ZST.TO

Basically money market bonds at a low fee. The history is a very straight trajectory, even compared to VSB.

It's kind've funny, though - the reason they are having problems is because they are having problems. People pull money out, so other people pull money out. Self-fulfilling prophecy (and agreed, I too am not putting my cash into EQBank at the moment, *despite* CDIC... lol... I mean, it's terrible, right??)
Amex Cobalt - 10x points at grocery stores in December!! This is amazing!

Great Canadian Rebates good extra sign up bonuses on credit cards, among other things.

Tangerine Orange Key: 48322202S1. I prefer Simplii (was PC Financial) to Tangerine, but you get $50 for signing up (and so do I).

PayTM - pay bills with your credit card. Like Plastiq, but currently a lot of stuff that Plastiq charges for is free. My code is PTM9691063, pay a $50 bill and we both get $10 in PayTM cash which you can use on the next bill. Good for min spend, at least.

Mr. Rich Moose

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Re: Where to park $25,000 for a year (in Canada)?
« Reply #6 on: April 27, 2017, 10:39:59 AM »
Yeah exactly, a few short sellers started to shake the tree and now the rotting fruit is falling. One thing is certain, you can't make money borrowing at 10%+ and loaning out at 5-6%. My guess is that EQ, Home Trust, and First National have the writing on the wall.

Reminds me a little of Countrywide, 2007.
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