# I just acquired $50 000. Where should I keep it to get the good returns in 6+ months?



## ebadudu (May 15, 2012)

I just got $50K (by legal means) and now I'm looking for a safe investment options to put it in. I may, or may not use the money 6 months from now (it depends on my 2013 plans).

If you were in the same situation where will you put the money? Most of ING direct savings accounts only pay 1.3%? Should I put my money in a savings account or GICs or anything else?


So at the end of 6 months, I'll like to have over $50 K and have gotten better returns than 1.35%.
In my TFSA, I've contribute about $10K ($5K for the past two years). So I'll be able to contribute another $10K in a new TFSA account.

Thanks.


----------



## Young&Ambitious (Aug 11, 2010)

For short term you don't have many options. Ally is offering 1.8%. I'd do maximum available TFSA amount in there and the balance in non-registered account.


----------



## Koala (Jan 27, 2012)

I wouldn't go with Ally personally, as it looks a little rocky now.
http://http://www.theglobeandmail.com/globe-investor/gm-circles-as-ally-aims-to-unload-international-assets/article2432548/
I don't think you would lose money with them, but I wouldn't be surprised if the interest rate drops to 1% or less.
Canadian Tire is also offering 1.8%


----------



## riseofamillionaire (Feb 23, 2012)

ebadudu said:


> I just got $50K (by legal means) and now I'm looking for a safe investment options to put it in. I may, or may not use the money 6 months from now (it depends on my 2013 plans).
> 
> If you were in the same situation where will you put the money? Most of ING direct savings accounts only pay 1.3%? Should I put my money in a savings account or GICs or anything else?
> 
> ...


I wouldn't max out your TFSA if you plan to maybe take out the money in the short term.

In your case, because you need liquidity and flexibility, any high interest savings account or a cashable GIC would be best options. Unfortunetly, the rates are somewhat laughable. 

Maybe you could find out what your plans are for 2012 and whatever you don't need, buy a dividend paying stock ETF with it.


----------



## Koala (Jan 27, 2012)

Why wouldn't you put it into a TFSA? I would max out my TFSA first.


----------



## PF_Enthusiast (Jan 21, 2011)

I would max out my TFSA first and deposit $10k. With the remaining $40k, you could open up a High Interest Savings Account with People's Trust at 3%. They are located in Vancouver, are CDIC insured, but don't do transactions online. They have held their current 3% interest rate for their HISA for at least the last 2-3 years now. Alot of the big online banks (ING, Ally) have had small declines in their rates. OR...put it on all black


----------



## Koala (Jan 27, 2012)

PF_E, that's way better than Ally/CT as long as the OP doesn't mind the lack of online access!


----------



## riseofamillionaire (Feb 23, 2012)

Koala said:


> Why wouldn't you put it into a TFSA? I would max out my TFSA first.


If he takes it out he can't recontribute - best to have long term money in the TFSA to take full advantage of tax benefit.


----------



## 0xCC (Jan 5, 2012)

He can't re-contribute in the same calendar year but he can re-contribute in the following calendar year. I agree with others on the thread, max out the TFSA. Of course, that doesn't help with exactly what to put the money in, just where to put it. If you are going to need the money in 6 months you are probably best to put it in a HISA.


----------



## K-133 (Apr 30, 2010)

I agree, there is little negative to maxing out the TFSA. IF you aren't using the space anyhow, then it doesn't really matter whether you'll be able to recontribute within the remaining 1 month of this calendar year after you take it out in 6 months.


----------



## iherald (Apr 18, 2009)

PF_Enthusiast said:


> I would max out my TFSA first and deposit $10k. With the remaining $40k, you could open up a High Interest Savings Account with People's Trust at 3%. They are located in Vancouver, are CDIC insured, but don't do transactions online. They have held their current 3% interest rate for their HISA for at least the last 2-3 years now. Alot of the big online banks (ING, Ally) have had small declines in their rates. OR...put it on all black


I just checked online, they are currently saying 2.1 % for HSA as of today. Better than ING at 1.8 but not 3 anymore!  The TFSA account appears to still be at 3%


----------



## Young&Ambitious (Aug 11, 2010)

Koala thanks for the link on Ally. I was enjoying my 1.8% on my emergency fund :/ well relative to the rates offered by the big banks. Oh well, I'll jump ship if need be.


----------



## PF_Enthusiast (Jan 21, 2011)

iherald said:


> I just checked online, they are currently saying 2.1 % for HSA as of today. Better than ING at 1.8 but not 3 anymore!  The TFSA account appears to still be at 3%


Figures. I was just eyeing their HISA this past weekend and now after 2-3 years, they drop their interest rate. Still...2.1% is a good rate for a HISA and I don't need the online access. To deposit, buy some "cheap" stocks or DCA my index funds....


----------



## Financial Cents (Jul 22, 2010)

*Tax Free *Savings *Account.* 'Nuff said


----------

