Update on balance sheet and (un)profitability of Motus Bank | Page 4 | motusbank | Discussion forum

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Update on balance sheet and (un)profitability of Motus Bank
August 20, 2023
1:44 pm
Forum Posts: 1051
Member Since:
November 18, 2017
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By-the-day custom terms are great for leaving TFSA redeposited funds in near the end of a year to allow redeposit in the new year in a different financial institution..

For example, let's say you put $X into a TFSA and want to do the year-end maneuver. You withdraw it near the end of the year, then redeposit the cash in the new year without paying a transfer fee.

But now your new deposit will mature at the start of a future year, not the end! You won't want to have to leave your cash in a savings-deposit TFSA at lower interest until the end of the year when you can move it again. A six- or eight-month term will get you closer to year-end and still probably do better than a savings-account rate.

The by-the-day terms will let you get even closer - though I don't recommend waiting too late in December, as things can go slowly in dealing with TFSAs. Transfers are incredibly slow at times, but withdrawals out of TFSA registered status should clear within a week.

The limitation is that a term only a few days short of the next full-year count will probably (depending on the future rate curve) give you one tier less on the interest. (less than X years instead of the full X year rate)

If the future rate curve is inverted, though, a term a few days short of the full year will actually give you a better rate for nearly as long!


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