Best place to park money
I have about $40,000 in my brokerage account waiting for the right opportunity. I want to put it into the best interest bearing investment and have it available for stock or mutual fund purchases within a day's notice. What do you guys do in this situation?
Since you asked , I have my investment accounts with Qtrade and have an Interest Plus Savings account with PC Financial at 1.35% daily interest. My cash sits in the savings account ... to make a buy, I simply submit a transfer request to Qtrade, then make the buy ... there's no having to have the cash sitting in the investment account. On a sell settlement date, if I'm not planning on any buying for awhile, I transfer the cash back to PC Financial ... the transfer is next day. I also have savings and chequing accounts with Alterna at 1.2% ... same sort of thing except cash has to go from savings to chequing, then to Qtrade ... but it's all done in a few keysrokes.
Last edited by rikk; 2012-06-08 at 10:27 AM.
You can put it into a HISA within the brokerage account - Canadian Capitalist has an article about the different ones available.
I hold cash in two forms withing my brokerage/bank accounts.
One as a pseudo money market fund (these high interest cash accounts sold like a fund), and as strict cash, sometimes within the brokerage account itself, and sometimes in my high-interest e-savings account.
I like the 100% liquidity, even if I don't earn any interest on it simply to be able to mobilize any day I want. The interest you forgo is next to nothing anyway.