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Looking for short term investment, TFSA GIC, GIC, or HISA?
January 21, 2013
12:32 pm
ObviouslyDexter
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January 21, 2013
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Hello!

I have 40k that I have managed to save up for a house, I know for a fact that I will not be touching this money within a year.

Assiniboine Credit Union has a TFSA GIC at 1.95%, I have an RRSP but no current TFSA which means that I can deposit, 5k per year since 2009 -2012 and 5500 for this year which leaves me with 20500 to place in the TFSA GIC. Would it be better to have this 20500 in this TFSA version and place the remaining 19500 in the GIC at 1.95% as well or to simply lump it all up and put the full 40k into just the GIC. (Not sure if and how much I would be taxed from this GIC)

OR my third option is to find a good HISA to use. I currently have it all and some extra in an RBC esavings account at 1.34% which is taxable income.

Like I mentioned earlier, I know I will not need this money for at least 1 year. Is it in my best interest to put half in the TFSA GIC and GIC / all in the GIC / all in the HISA?

- Thank you,

Dexter

January 23, 2013
9:47 am
Yatti420
Canada
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I would certainly take any extra unreg cash and move to TFSA immediately.. The current limit as of now is 25,500.. Maybe ladder some GICs or use GIC/HISA combo if you can find some decent rates..

January 24, 2013
7:29 am
Save2Retire@55
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I would say TFSA as well and with Peoples Trust which gives 3% interest for now.

February 24, 2013
9:39 pm
Rick
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February 17, 2013
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Yas said

I would say TFSA as well and with Peoples Trust which gives 3% interest for now.

What's their history like? Is the rate more or less stable, or is it a seasonal fluctuation to attract buisness?

February 25, 2013
8:21 am
Peter
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Rick said

Yas said

I would say TFSA as well and with Peoples Trust which gives 3% interest for now.

What's their history like? Is the rate more or less stable, or is it a seasonal fluctuation to attract buisness?

We've only been tracking this for a few years, but you can see the rate history on the comparison chart by clicking on the rate:

https://www.highinterestsavings.ca/chart/

Their TFSA rate has been the same since at least February 2009, although it is quite surprising to me that they've managed to keep that stable for so long! On the other hand, their normal savings account rate has seen several drops over the past few years.

July 9, 2014
2:08 am
tracyHill
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July 2, 2014
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I would suggest, TFSA as a better option. TFSA is much reliable and their consistent rates is more trustworthy. Only thing one should keep a notice of i.e. if you withdraw the amount and re-contribute in the same year, there can be penalties. Reference: http://www.momfinance.com/be-t.....solutions/

July 9, 2014
9:03 am
JustMe
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I would suggest to put max into TFSA at Peoples Trust.
The rest - buy 1 year GIC at the same bank.

Both instruments currently offer best interest I am aware of.

July 9, 2014
10:36 am
James
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Hi ObviouslyDexter,

You said you have an RRSP. Is it maximized - at least to the amount of $25,000? If my end goal was to buy a house, I would want to make sure I could maximize my withdrawal under the RRSP Home Buyer's Plan if this is your first home. You get this money out tax free as long as you pay it back to your RRSP. It's hard to beat this deal. Make sure you know the regulations and ask if you have questions because there are limitations on contributions and withdrawals depending on when you plan to buy the house.

If you've sorted all of that out already, my recommendation would be for the TFSA at Peoples Trust. In fact, I would do that now without thinking about it. If you change your mind, you can withdraw the money and put it in a GIC later.

October 19, 2016
1:12 pm
darylshriver
Toronto
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October 19, 2016
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I would recommend a TFSA GIC and a GIC.

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