Investment Q&A

Q: Hello! For large sums of money that need to be held in cash which is the best and safest option and what is the difference in yield one receives in these different investments? Is money held in these kinds of investments CDIC insured up to $100,000 or is that only if one holds in a GIC? Thank you!

Q: When you own a money market fund such as tdb8150, do you accrue interest on a daily basis. If I buy Monday and sell Friday , will I receive interest. One does not need to hold for a specific time ?

Q: Further to Barbara’s question, is the TD8150 series of high interest savings account guaranteed under the CDIC insurance up to $100,000.00?

Q: This is in response to Greg's question on cash etf's through TD Webbroker. I use the TD investment savings accounts, TDB8150 for CAD and TDB8152 for USD, they are structured as mutual funds but are not mutual funds, no mgmt fees, no trading fees, current rates are 4.05% and 4.15% respectively, interest is calculated daily and paid monthly, unit value $10 does not fluctuate i.e. no capital gains or losses. Check it out. You have next day liquidity if trade is placed before 3 pm ET and you can buy securities if these holdings are in your account as units are treated like cash, you just have to ensure you sell units to settle trades. Hope this helps.

Q: Other options for Francisco

TD has investment savings account products (TD mutual funds) including

TDB 8150 (TD Bank)

If more CDIC insurance is needed TDB8155 (TD Mortgage Corp) and TDB8159 (Canada Trust Corp) are also available.


Currently at 3.25% annually, paid monthly
Minimum initial purchase is $1000.00 per fund

US$ products are also available

All available through WebBroker

Q: Further to Madeline's comment re: TDB8150 Investment Savings Account (TD Bank)

Minimum initial purchase is $1000.00

If more CDIC insurance is needed TDB8155 (TD Mortgage Corp) and TDB8159 (Canada Trust Corp) are also available.

Q: Besides the interest rate what is the difference between these two funds? Does the F series have a fee or somethings?

Q: In response to Paul's question
Q: I am with TD and they do not list this ETF (PSA) wish they did - is there a TD product that is available that compares.

I think TDB8150 (CND) and TDB8152 (US) would be the equivalent - they are listed under mutual funds (not ETF) on the Waterhouse platform

Cheers
Scott

Q: 11:06 AM 10/19/2019

I am trying to compare PSA to TDB8150

My problem is I have already $100K in TDB8150 in my Cash acct and would like to put additional cash funds somewhere, ideally with CDIC protection. I have no more room in TFSA and RRIF accounts. So I am wondering if it is ok to just exceed the $100K amount in TDB8150 since PSA is not CDIC insured anyway. I am not interested in GICs or T-bills as these are not really liquid. Do you have any suggestions? The difference between TDB8150's 1.6% and PSA's 2.14% [or 1.74%?] seems trivial at this time when safety of principal is paramount.

I am very confused about PSA because Yahoo! gives the following data on PSA;
Net Assets 2.1B
Yield 2.16%
YTD Daily Total Return 1.74%
Beta (3Y Monthly) 0.00
Expense Ratio (net) 0.15%
Inception Date 2013-10-15

Does the yield vary from 2.16% ? I see on Aug 06 19 you said PSA has a "2.37% indicated yield", not the 2.16% mentioned in Yahoo. Why does Yahoo indicate a YTD Daily Total Return of "only" 1.74%. What yield do I actually get?

The price of PSA starts each month at $50.00 and rises in 9 or 10 steps a cent at a time during the month to end the month at $50.09 or $50.10 then drops back to $50.00 at the start of the next month. Are the earnings [interest] accumulated during the month and only paid out at month end? Is the payment in cash to one's brokerage account or are more units issued or the cash reinvested?

Thank you.......... Paul K

Q: Hello 5i Team

Further to questions on parking cash, all the discount brokerages offer "High Interest Savings Account" mutual funds which are CDIC insured deposit accounts for the various subsidiaries of the bank.
Each of these is insured to $100k under CDIC, therefore you are able to segregate $400k under CDIC insurance in one brokerage account.
I am most familiar with RBC Direct Investing and TD Direct Investing, each offer 4 separate subsidiary companies with CDIC coverage. Other discount brokerages may only offer 1 option. A list is available on-line at:
https://www.finiki.org/wiki/High-interest_savings_account
The benefit of using these in your brokerage account are having cash available for other security purchases and the value is included for calculating available margin (loan value). The interest is paid monthly and can be reinvested automatically.
Thanks

Q: I am looking to put a large amount of cash in TD Webroker registered and non registered accounts, safely on the sidelines. Could you please tell me what your preference would be and why, including any other recommendation. Many thanks as always.

TDB8150 (savings account) Currently offering 1.6% yield. CIDC guaranteed.
TDB165 (premium money market funds, with initial minimum investment of $100,000 required) Currently offering 1.54% yield. CDIC guaranteed ?
PSA (high interest savings ETF). Currently offering 2.125 yield. Not CIDC guaranteed.

Q: I have several hundred thousand US $ in this money market----Is TDB166 covered by Canadian Deposit Insurance and if so to what amount? Also if there is a limitation to the amount covered can it be spread into several accounts to qualify for full coverage?

If not covered---- what possible black swan event could take it to zero?

Q: I want to park money into TDB8150 & TDB8152 does this goes down if the market goes down. Is this same as holding in a high-interest savings account.

Thanks
Hector

Q: 2:00 PM 7/14/2019
I expect to be parking a lot of cash in our 4 TDWaterhouse accounts... two RRIFs and two TFSAs
I want to be sure the money is covered by CDIC insurance
.--------------------------------------------
The CDIC site states :
Eligible deposits are insured separately in each of seven categories:
in one name
in more than one name
in a RRSP
in a RRIF
in a TFSA
in trust
for paying taxes on mortgaged properties
.-------------------------------------------
From the CDIC website :
We insure eligible deposits at each member institution up to a maximum of $100,000 (principal and interest combined) per depositor per insured category.
Eligible deposits include:
1. Savings accounts
2. Chequing accounts
3. Term deposits, (such as GICs) with original terms to maturity of five years or less

Uninsured financial products include:
1. mutual funds (including money market funds), stocks and bonds
2. term deposits, such as GICs, with original terms to maturity greater than five years;
3. foreign currency deposits (e.g., U.S. dollars);
-------------------------------------------
The question is just what specific securities are eligible.
Do the :
1. TD "savings" account TDB8150,
2. and the Purpose High Interest Savings ETF PSA.TO
3. and the Horizons Active Floating Rate Bond ETF Common HFR.TO
all qualify or are they considered to be "Mutual Funds"

So it looks as though just <5 yr GICs, and cash sitting uninvested in these accounts actually qualify

Can you please clarify this issue and tell me just what savings vehicles actually do qualify?
Thank you.

Q: I have a large amount of money that I am sitting on and would like to invest for a period of about 6 months. Would appreciate your suggestion as to where to invest it. Thanks, Bill