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

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Investment Savings vs. Money Market (premium) - TD comparison
August 3, 2023
6:55 am
Pronounced Zed
Toronto
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December 9, 2018
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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
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November 3, 2022
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Are funds in the Money Market account insured?

August 3, 2023
9:34 am
AltaRed
BC Interior
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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
Norman1
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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
PORTFOLIO ALLOCATION (March 31, 2023)
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

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