10% APY - 2022 TFSA kick-start account idea | Your stories | Discussion forum

musicalmaestro said
Ok I know this forum probably has a lot of skeptics and haters of crypto. I also notice a trend towards investigating alternatives to high interest. Let's face it, the crypto sphere in Canada eclipses the Financial Sector in MarketCap and those ridiculously low savings rates aren't doing us any favours. Is it a phase, a bubble or a scam? I don't know. But I do know we are all here to make money. 😉

Anyone else hear Kevin O'Leary's voice with those last words? Well, he has come out and said the he is investing in crypto. Old news I know, and granted he has more money than he knows what to do with, so makes sense to "diversify".

But

He's making and selling a compelling point: It is possible (and I am doing it right now), to earn 10% on crypto savings. In fact, when he mentioned in an interview that he doesn't intend to give his kids an inheritance (but leave their children with access to a trust fund), he also mentioned his daughter asked him where she can find some good yield on her 17k in savings.

That's where DeFi and a plug for crypto staking/earning came in. Sure his investments in a few tickers may be intriguing - but we are here to focus on high interest.

So naturally being curious, I looked into this space for us Canadians and it turns out that two apps and one coin make it possible, thought it does take a bit of patience to setup.

First off you will need to see for yourself if you Trust TCAD - it is supposed to be collateralized, meaning every dollar in TCAD has a dollar Canadian held somewhere against it. It's the only one of its kind until VCAD comes to fruition.

Then there is Crypto.com based in Hong Kong and Celsius (based in London) that are your best friends if you wanted to dip a toe in (maybe put some of that TFSA money waiting to be invested in the new year into something that actually earns interest - sigh no more ING Direct TFSA Kick-Start accounts - damn nostalgia).

Anyways, once you create accounts and verify your identity you can transfer funds using e-Transfers (so max 3k at a time) and if you don't want to put all your eggs in one basket, buy the TCAD in crypto.com and pay 4$ to send it to the Celsius app. No others fees, and the only cost is your time, plus now you get a few options to get great yield:

Crypto.com
(Please note these are ANNUAL yields and these rates can change at any time)
as of writing you are looking at 6% Flexible, 8% for 1-month "GIC" and 10% for a 3-month "GIC" (what they actually call crypto earn) . NOTE: Interest is paid out weekly, but not compounded.

Celsius wallet: Currently 8.8% APY - interest is paid weekly on Mondays and it is compounded. Funds can be withdrawn at any time.

So there you have it, not without risks, but O'Leary is doing it, so why shouldn't you or I on 1-7% of savings?  

Shucks, guess I can't edit the original anyways,

EDIT: So crypto.com app is based in HK but the service is provided by Foris DAX inc. it has many "locations" being a Global subsidiary to appease the numerous regulators.
Also, just found out the withdrawal fee for TCAD to an external wallet is now 20$ 🙁