Where should I keep my emergency funds?

[armanqnthony]

As most of the financial advisors says to keep 3-6 months worth salary as emergency funds, I have saved that amount. Now I have 50% of it in my checking account, 50% in Scotia momentum plus savings. I need some advice where should I keep all of that so I could gain some good interest. Scotia momentum plus have just got peanuts.

 

[12344321]

@armanqnthony You can chase around HISA deposit promotions.

You can choose a HISA from an online bank that pays a steady, higher interest rate (like Motive).

You can buy HISA ETFs (like CASH.TO) but that is a tad less liquid and may take a day or two to get access to the funds.

Cashable GIC’s but again, less liquid than cash.

 

[armanqnthony]

@12344321 Thanks for the suggestions

 

[icmontreal]

@armanqnthony Hisa. Only real safe answer.

 

[xebratech]

@armanqnthony Keep it in pennies under your pillow lol jk

 

[armanqnthony]

@xebratech Maybe I can work as a tooth fairy

 

[wamiti]

@armanqnthony The Wealth Simple Cash Account is a great place to keep this money.

Or you could tray EQ bank if your not sold on Wealth Simple.

I have been using Wealth Simple cash account for a while.

Here is a link if you want to learn more

https://youtube.com/@THECRAZYCANUCKINVESTOR-od4gv?si=mxxnqxzCeAuzKLqP

 

[2witnesses]

@armanqnthony Wealthsimple Cash account is at 4% (5% if you're on Generation tier). No need to chase savings account promos.

 

[alexandriaisburning]

@2witnesses May not be popular but agree and turn off virtual and physical card keeping a few thousand there. The rest put in WS trade account and buy cash.to etf. It is simple, with a decent return and very safe and liquid.

 

[armanqnthony]

@alexandriaisburning Sorry I am noob about etf(just saved some in VFV). When I see the chart for cash.to it shows like no significant rise in value why people keep suggesting that? Sorry if that was a stupid questions

 

[2witnesses]

@armanqnthony It's meant to be a stable ETF that maintains a consistent dollar value and pays a dividend every month.

 

[alexandriaisburning]

@armanqnthony As chop said cash.to will maintain a consistent value each month by dispensing the interest it makes each month as a dividend. It was something that took me a while to understand. Two important things to understand. Almost all charts for an ETF and stock shows the appreciation of the stock not including dividends. When a dividend gets paid out the stock price is reduced by the amount of the dividend.

So in the chart you will see the value going up a penny or two each day (this is the interest being made increasing the value of the ETF). Once the interest is paid out as a dividend it resets the value of the ETF to the initial value (or very close to it)

 

[armanqnthony]

@alexandriaisburning Thanks for the explanation

 

[tyleryhwh]

@armanqnthony Just wondering why you keep 50% in a chequing account? Unless your paying by debit over credit card? I keep my chequing account at a bare minimum since I use it for bills only and I get 0% for it.