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July 17, 2020
2:11 pm
Alexandra
British Columbia
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September 24, 2019
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Well, yesterday I decided (for the time being) to throw in the towel on chasing down High interest daily interest savings at various financial institutions. So, I just decided to risk having considerably more than the CDIC insured in my 2.5% Tangerine account and the 2.4% CIBC account. I don't think they will fail in the next few months. Maybe in Dec-Feb some of the rates will increase to entice investors to their accounts during high season for TFSAs and RRSPs. Any thoughts?

July 17, 2020
2:51 pm
gicjunkie
Ontario
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Very low risk, but not no risk.

July 17, 2020
5:07 pm
Doug
British Columbia, Canada
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gicjunkie said
Very low risk, but not no risk.  

Agreed. This is functionally equivalent, more or less, to buying the uninsured bond of The Bank of Nova Scotia (if Tangerine HISA) or Canadian Imperial Bank of Commerce (if Simplii Financial HISA) when you deposit more than your CDIC deposit insurance limit.

The premiums aren't as much as a few months ago, but you should still be able to get a Canadian bank's bond for ~3% or so. Or, go a bit higher up the risk curve and buy their common shares yielding ~5-7% per annum or the preferreds for ~5% (either of which with a dividend tax credit).

Cheers,
Doug

July 17, 2020
5:33 pm
Alexandra
British Columbia
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Thanks so much Doug. I have never been into mutual funds. But years ago when I was in my late 30's to mid 40's, I bought several blue chip stocks i.e. Bombardier, BCE , CIBC etc from Scotia McLeod as well as T-Bills when they were at 15%.

I sold everything out by my late 40's. Since then, I have only purchased some real estate and GIC's as investments.

Honestly, at my age now, I am almost afraid to try anything else and I have so little knowledge now about ways to purchase and who to go to if I wanted to buy bank bonds or preferred shares. Please do not laugh.............I truly don't know how to go about it. Who to contact etc.

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