Where can I get over 5% on a savings account or GIC, now that BoC raised rates again?

[syd]

Looking for 5.25 or 5.5 ideally. I could do non-registered and move TFSA and RRSP if needed for the best rates.

Currently have money in Cash.To but that’s under 5%.

My Simplii and Tangerine promos are over now and they won’t give me more than 4%. But I know other customers are getting 5.25!

 

[wewalkbyfaith]

@syd Cash.to may increase now.

 

[pastorvjoshua]

@wewalkbyfaith New here, how does it work. I buy cash.to in Wealthsimple under TFSA and it pays out interest every 2 weeks or month?

 

[wewalkbyfaith]

@pastorvjoshua Its paid once a month, calculated on the last day, then paid out about a week or so later. I am also fairly new to it, so no worries.

Here is the official page for it. The pay out info is under "distributions"

https://horizonsetfs.com/ETF/cash/

The value goes up over the month, then resets to $50 a unit. The earnings (your gain/interest) will be lost when it resets, but is paid out. Also since the value slowly increases over the month, if you sell some to cash out, you still get the partial interest as the price will be higher than the $50 you bought in at.

In terms of buying it, on your wealth simple app, look for "Horizons High Interest Savings ETF Class A", its sign is "CASH" I think the .to bit is added to refer to the Toronto TSX traded one, so really we can just called it CASH

 

[pastorvjoshua]

@wewalkbyfaith Do I need to wait for the price to reset to 50 to start or it doesn’t matter. If I buy at higher price after first payout it will look like I’m at a loss, right?

 

[melista]

@pastorvjoshua Each day you wait you’re closer to the record date. The interest is, in layman’s terms, ‘building up’ over the course of the month but until it pays out, it’s being factored into the share price. So in short, it doesn’t matter. You either get the interest via the elevated share price or through the disbursement.

 

[pastorvjoshua]

@melista If I do in the start of the month and after a month my principal will stay as such and gained interest will be paid back. If I buy at higher price and after the interest payout my principal will be less than what I invested, right?

 

[melista]

@pastorvjoshua Very approximately: If you buy at 50.20 near the end of the month, you'll have overpaid 0.20 (the approx. value of the pending disbursement). But as you were a shareholder on the record date you'll be eligible for the disbursement of approx. $0.20 per share (it's equivalent to about $50 * 0.0493 (current yield) / 12 months).. however, you never held onto the stock for more than a day or two so you're getting an "oversized" disbursement relative to how long you held the ETF for. If you sell earlier in the month than when you bought, you're going to take a loss but the disbursement that was paid out even though you didn't really "earn" the whole value of it will balance out the loss.

 

[pastorvjoshua]

@melista Thanks!

 

[wewalkbyfaith]

@pastorvjoshua You don't need to wait, you can buy any time. You can also sell any time. It's like a GIC but you are never locked in, its partially or fully liquid.

If you buy part way you will get the pay-out of the interest when it resets.

 

[prophetictimes]

@wewalkbyfaith Hey there, sorry bit new to CASH too. Are you saying that, say I buy $1000 worth on day 1, I will get say, some $x increase on the 30th or last day. If I don't sell the CASH stocks, I will loose this $x?

 

[wewalkbyfaith]

@prophetictimes I don't know if I fully understand what you are asking. But the value is paid out in the monthly interest.

If you buy $1000, at the end of the month, its worth $1050.00 the shares reset to $50 per unit, the value goes to $1000 (so you technically "lose $50" but it is essentially break even) but then you receive a payout of $50

 

[prophetictimes]

@wewalkbyfaith I guess my question was for the payout, so if we just buy CASH and leave it like that without selling again, we would get payouts if the CASH decides to give payout right? i am thinking of just buying some and leave for like 6 months without looking at the value every few weeks or so.

 

[wewalkbyfaith]

@prophetictimes Everyone owner gets a payout once a month no matter what, that's how it works!

 

[marymma]

@wewalkbyfaith You wouldn’t get a payout of $50 on $1000. That would be your payout for the year. So you take $50 and divide it by 12 to get your monthly interest. $1000 will get you $4.16/mth

 

[wewalkbyfaith]

@marymma Yes that’s correct again was I trying to make a simple example but forgot to divide

 

[yodamama]

@pastorvjoshua Every month.

 

[ben888]

@yodamama I bought CASH may 4th and haven't received any interest yet. How does it pay out interest? Does it pay out like dividend style?

 

[yodamama]

@ben888 See previous payout dates here, it should be similar this month as well. Go to performance and distributions and look for payout date.

https://horizonsetfs.com/ETF/cash/

 

[p1saint]

@ben888 Around the 10th.