Q: Have some money to park but looking for best interest rate return. Looking at CASH and CIB238. Which is better in your opinion? Looking for safety for 1 year. What is approximate current return for each?
5i Research Answer:
CASH has a one-year return of 3.58%, but as rates drop its indicated yield is 2.52%. This could still vary with rates over one year. The CIBC money market fund has a one-year 3.8% and does not show expected yield. Both can be considered very safe, but neither is guaranteed in the sense of the word. CIBC does hold some corporate money market securities so may be slightly riskier but due to its short term nature we would not be concerned. We would be comfortable with either and would not expect forward returns to be that materially different. We would side with CIB238 but it is essentially a coin-toss.