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Where do you park your US$ ?
March 26, 2021
1:07 pm
smayer97
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Looking for discussion on this topic.

I park my US$ at Tangerine when they have promos that are worth it.

Otherwise, my fallback at this time is ICICI bank, which currently offers 0.45%. That rate has been steady for a very long time.

Previous to that it was Hubert, which had the highest around at 0.75% until they did a sudden drop to 0.25% very shortly after I opened my accounts there about 1 year ago.

An alternative I have considered is a brokerage house but I have not investigated enough to see if there are any places that offer interest on US$ cash holdings.

Please chime in with any other good recommendations.

March 26, 2021
2:24 pm
topgun
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smayer97 said
Looking for discussion on this topic.

I park my US$ at Tangerine when they have promos that are worth it.

Otherwise, my fallback at this time is ICICI bank, which currently offers 0.45%. That rate has been steady for a very long time.

Previous to that it was Hubert, which had the highest around at 0.75% until they did a sudden drop to 0.25% very shortly after I opened my accounts there about 1 year ago.

An alternative I have considered is a brokerage house but I have not investigated enough to see if there are any places that offer interest on US$ cash holdings.

Please chime in with any other good recommendations.  

I stopped using a Tangerine US account when they paid ZERO in interest. The rate was .4% May 2018. The current rate is .1%. My brokerage US account pays ZERO. Just have to expect very little from them in these times. Sorry I could not do better.

Have a Great Day

March 26, 2021
4:02 pm
rhvic
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Like smayer97, I will move my US$ to Tangerine when they have a promo - lately that has been 2%, but it ends at the end of March. So, my US$ is currently on its way to Hubert, temporarily, to await the next promo at whichever FI has one. If Tang does make a new offer, then it will return there as 'new money'. But I will be very surprised to get sequential offers at Tang - that has not to me happened for years.

March 26, 2021
4:24 pm
AltaRed
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smayer97 said
An alternative I have considered is a brokerage house but I have not investigated enough to see if there are any places that offer interest on US$ cash holdings.

Please chime in with any other good recommendations.  

There is no good option. The big bank discount brokerages all have in-house ISAs (deposit accounts insured by CDIC but bought and sold as mutual funds) but rates are in the order of 0.2-0.3%. Some have $1000 minimums, some maybe less, or more. There are also ETFs bought and sold like stocks. The only USD one I know of in Canada is PSU.U on the TSX. It won't be worthwhile unless one has low (or zero) commissions and/or a very large sum to invest Some brokerages won't let you buy PSU.U on their platforms either.

March 27, 2021
11:31 am
Norman1
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There isn't going to be much with US Government 91-day treasury bills around 0.015% these days.

Some brokerage offerings:

Scotia iTRADE US$ Cash Optimizer Investment Account, 0.25%
TD US$ Investment Savings Account (TDB8152), 0.20%
RBC U.S. Investment Savings Account (RBF2014), 0.15%

The Purpose US Cash Fund (PSU.U) isn't offering much either. Distributions for the first three months of 2021 are $0.0191 + $0.0188 + $0.0240 = $0.0619. That works out to be

  $0.0619 / $100 * 365 / 90 = 0.00251 = 0.251%.

March 27, 2021
5:31 pm
Bud
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State Bank India Canada US$ .4%

Tangerine includes US$ in promo rate double the amount. Example, 1US$ +1Cdn = 2 each @ current promote rate 1.5%-1.75 to max allowed

March 28, 2021
6:59 am
mustang
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Same story here
Put USD into Tang when the promo is on, then pull it back to TDB8152 when it expires
Actually, with the rates being near enough to zero, has pushed me to invest in some high dividend ETF's

March 29, 2021
8:03 am
Bud
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Industrial and Commercial Bank of China (Canada) US$ Gic 1yr@1.2% 2yr@1.4%

March 30, 2021
5:41 am
Loonie
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According to wikipedia, Industrial and Commercial Bank of China is a "state-owned" bank with headquarters in Beijing.

Would you really want to put your money in the Canadian branch plant of a bank owned by the Chinese gov't, considering the current political situation?

March 30, 2021
8:36 am
Bud
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Yes, I trust ICBC and Bank of China enough to go above their Cdic deposit insurance limit. China is a powerhouse.

March 30, 2021
9:39 pm
Loonie
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I wasn't thinking about insurance or security of funds. I was thinking about the two Michaels, and others.

April 1, 2021
2:00 am
implode
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Bud said
Industrial and Commercial Bank of China (Canada) US$ Gic 1yr@1.2% 2yr@1.4%  

Is it this site?
http://www.icbk.ca/EN_new/eTools/Fees/

The "easy account" lists 1.3% for USD when over 50k. I had no clue what an easy count meant, but I found this:
"This account combines the functions of chequing account and saving account, which can be used for daily expenses, bill payments, cheque issuance, fund transfer, remittance, and etc. You can enjoy competitive savings interest, and worry free from the fund transfers between chequing and saving account"

So this account pays better than a locked in GIC?

April 1, 2021
7:00 am
JPenterprise
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April 1, 2021
2:54 pm
Loonie
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JPenterprise said
ICBC rank #1 bank in the WORLD!

https://en.wikipedia.org/wiki/List_of_largest_banks  

... by assets at least. It's not really surprising when you have the largest population in the world, have been having a boom period, and your biggest banks are owned by the national government.

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