bank rates
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None - BOC gives 'regular banks' cheap money - therefore they dont have to pay average people for their savings anymore.
People Trust offers 3% for TFSA. http://www.peoplestrust.com/main/?en&today_rates
I have an online savings account at Canadian Direct Financial which gives me 1.9% https://www.canadiandirectfinancial.com/Personal/
I don't like to lock in my money with a GIC.
I have an online savings account at Canadian Direct Financial which gives me 1.9% https://www.canadiandirectfinancial.com/Personal/
I don't like to lock in my money with a GIC.
It's past my bedtime and I've had 3ish drinks, let's do some meth oops math...
Per http://www.tradingeconomics.com/canada/inflation-cpi inflation is 1.3% . If your gic is not in a registered acct and assuming you are a terbite of wealth and taste you are in the highest tax bracket. So:
3% = 0.03 X (1 - 0.40) tax = 0.018
0.018 less inflation 0.013 = 0.005 .
one half of 1 percent real return. Keep your $$$ under your mattress.
Try a bank preferred share or buy Magna http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=MG-T#dashboard/follows/
I own it, actually added to my position this week.
It depends on what the OP is saving for, how much he has to invest and when he will need it. Index funds or ETFs are not a panacea, some can be quite volatile at times and you need to factor in buying and selling costs so you would need a longer time horizon and there is much greater risk of losing capital than a GIC (yes, there may be a greater return over time). The reality is, short term the yield curve sucks and you only start to see higher yields further out. Given that longer term yields have risen so much in the last three months I wouldn't recommend buying long term fixed income at this time either. There are so many alternative products in the market it can be bewildering to the "average" person.
Look into segregated funds (life insurance cos sell them) - the initial capital investment is protected (either 75 or 100%), some do not charge extra MERs (so same as buying a mutual fund), bypass probate and are creditor proof - products are out there they Insurance Cos have not marketed very well. You do want to keep it in there for a period of time as there may be charges to withdraw early, unless you buy No Load funds.
You might want to post in the business/investment section of terb - but clarify what your financial goal is and how much you have to invest.
