Investment Savings vs. Money Market (premium) - TD comparison | General comparisons | Discussion forum

Please consider registering

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —

— Match —

— Forum Options —

Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_TopicIcon
Investment Savings vs. Money Market (premium) - TD comparison
August 3, 2023
6:55 am
Pronounced Zed
Forum Posts: 19
Member Since:
December 9, 2018
sp_UserOfflineSmall Offline

In January I invested in both TD Investment Savings (TDB8150) and TD Premium Money Market (TDB2914). These were the results for the last six months.

-------- Sav ------ MM
Feb --- 3.73 --- 4.20
Mar --- 4.39 --- 4.70
Apr --- 3.73 --- 4.20
May --- 4.13 --- 5.03
Jun --- 4.55 --- 4.56
Jul --- 4.05 --- 4.85

Six Mth Gain 4.13 --- 4.63

Rates represent the annual rate, not the actual gain for that month e.g. Feb savings actual gain was 1/12 of 3.73%

Despite continuous rising rates, the dips in April and July are because there is no monthly payout like regular savings, it's the balance on the first business day of the following month. E.g. June includes interest from July 1 and 2 because they were on the weekend and July began on the 3rd.

Money Market is premium, which means a minimum $100,000 balance. There is a regular Money Market, but the yield will be slightly lower.
The only other disadvantage of Money Market is that you can't touch it for the first 30 days. After that, just like savings, you can withdraw any amount you want, so long as you keep that $100000 minimum.

GIC's and chasing different offers will get you a better rate, but if you don't want to lock in for long periods of time and don't want to keep moving money, money market might be a consideration. Obviously, will vary by bank.

August 3, 2023
9:15 am
Rail Baron
Forum Posts: 282
Member Since:
November 3, 2022
sp_UserOfflineSmall Offline

Are funds in the Money Market account insured?

August 3, 2023
9:34 am
BC Interior
Forum Posts: 2970
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

Rail Baron said
Are funds in the Money Market account insured?  

Money market funds are assets in open ended flow through trusts, not insured deposits. That said, some of the assets may be insured deposits if that is what the fund manager invests in.

August 3, 2023
9:50 am
Forum Posts: 6862
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

Money market funds, like the TD Premium Money Market (TDB2914), are funds and not accounts.

For example, most of TDB2914 is in commercial paper and bankers' acceptances. Those are not deposits and, consequently, are not insured:

TD Premium Money Market Fund
Net assets $1.178 billion
% of
Net Asset Value
Commercial Paper 43.2
Bankers' Acceptances 35.9
Cash (Bank Overdraft) 8.7
Federal & Guarantees 5.3
Provincial & Guarantees 4.5
Corporates 1.8
Other Net Assets (Liabilities) 0.6

Please write your comments in the forum.