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

[wewalkbyfaith]

@ben888 The pay out was today/yesterday you will receive it very soon keep an eye out

 

[godspower]

@ben888 Interest in typically calculated annual and paid out monthly

Edit: don’t listen to me

 

[rdhanes]

@godspower Wrong, it's compounded daily, and payout is calculated by ex-date by every month end.

 

[godspower]

@rdhanes Sorry, yes you’re right.

 

[crossfloss]

@pastorvjoshua

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

This is the best thread on cash.to

 

[floridarw122]

@wewalkbyfaith Got bumped up to 5.18% today

 

[wewalkbyfaith]

@floridarw122 I just saw — nice

 

[pavanpola]

@wewalkbyfaith You might actually want to get out. OSFI is making the classification change to how the cash etf works with the bank deposits. You may see it disintegrated in the next few months.

 

[syd]

@pavanpola Sorry what do you mean they are changing it? how? Will it just yield less or be shut down completely?

Probably due to the big banks whining

 

[wewalkbyfaith]

@pavanpola Do you (or anyone else for that matter) have any further info / sources about this situation in order to explain better, etc. thanks

 

[pavanpola]

@wewalkbyfaith https://www.investmentexecutive.com...nges-could-lead-to-lower-rates-providers-say/

 

[wewalkbyfaith]

@pavanpola Thanks I found some other articles online too. Disappointing as it was almost too good to be true. I hope this doesn’t happen.

 

[pavanpola]

@wewalkbyfaith To be fair. OSFI are being anti consumer friendly on this.

These products are great and OSFI should lay off.

 

[wewalkbyfaith]

@pavanpola That is fair -- in line with the big banks likely, don't want to offer the consumers an alternative that is "too good"

 

[wewalkbyfaith]

@pavanpola Interesting thanks for the heads up

 

[auzzieborn]

@pavanpola Wait so CASH.TO can actually go down in value? like equity ETFs?

I'm holding some with the presumption that it's like a cash equivalent

 

[pavanpola]

@auzzieborn Ok sorry my bad on terminology. The value will be adjusted based on the interest rates it receives from the banks. So instead of yield 5% it can go down to 2%.

It’s not like the cash is losing value it’s just the interest rate it earns can go down significantly when the rules comes into play.

 

[syd]

@pavanpola Where did you see this info? Link?

Do you know when exactly the rules will come into effect?

Will it impact other HISA ETFs like HSAV Etc?

 

[pavanpola]

@syd It will impact all hisa etfs.

https://www.investmentexecutive.com...nges-could-lead-to-lower-rates-providers-say/

 

[syd]

@pavanpola Thanks. So based on the info below, we should be ok to get high yields from HISA ETFs until August 1?

So 2 more months of keeping money in Cash.To should be ok?

Article says:

Investors in high-interest savings account ETFs could see lower rates on their funds later this summer as regulators require banks to adjust liquidity measurements for the products by Aug. 1.

The Office of the Superintendent of Financial Institutions (OSFI) is reviewing banks’ liquidity adequacy requirements as it considers whether new categories of wholesale funding are needed “to appropriately reflect the risks” of “retail-like wholesale products” such as high-interest savings account (HISA) ETFs.

The regulator said the earliest implementation date if new categories are needed would be in 2024. In the meantime, OSFI said wholesale funding from financial institutions must classify deposits from HISA ETFs as if they will fully “run off.”