# Parking cash



## Kaitlyn (May 13, 2011)

Did some searching and even came across a past thread of mine from 2012 

My original question was regarding within a registered account, but what about non-registered?

I've got an increased amount in cash these days, and just holding it as "cash" or in my chequing account doesn't do much for it!

Within WebBroker, is TDB8150 still indeed the recommended vehicle?

Does "buying" and "selling" this fund make tax reporting an issue? Such odd, irregular amounts would make ACB/tracking a mess if that's the case.

Also, say I have $10k in TDB8150 and I want to buy 3000 of stock ABC at $1.00, could I sell my $10k TDB8150 and immediately make an order for the stock, or would I have issues regarding availability of funds?


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## Soon Forget (Mar 25, 2014)

Yes, I believe TDB8150 is still the best rate from TD (currently 1.25%), and is the one I use. If you will be holding more than $100K then it's wise to divide between TDB8150 and one of the other ISAs to ensure everything is CDIC protected. The others have the same rate and are found here:

https://www.tdassetmanagement.com/s...tions/td-investment-savings-account/index.jsp

Buying/selling creates no tax issues since this money is considered deposited into a savings account, not like purchasing a stock/mutual fund. At the end of the month TDB8150 pays its interest to the account and at the end of the year TD supplies a T5 for the total. No ACB needs to be tracked.

When wanting to use these funds to purchase a security, you don't even need to sell TDB8150 first. You can go ahead and make the other purchase, and when finalizing the order WebBroker will have you check a box which says you agree to sell funds from your ISA to complete the order. Stock ABC will be purchased immediately and settles in T+3 days, then you must sell the amount required from TDB8150 to fund the transaction. TDB8150 settles in T+1 day so your account never actually carries a negative balance.


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## the-royal-mail (Dec 11, 2009)

Is this only available to TD customers?


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## Soon Forget (Mar 25, 2014)

I'm with TDW so I've only ever purchased TDB8150 from there, but the article below indicates that it can be purchased from other brokerages also. Difference being that other brokerages may have fees or minimum holding requirements. Within TDW there are no fees to buy/sell and no minimum holding periods.

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/


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## leeder (Jan 28, 2012)

If you're with TD Waterhouse, I don't believe you have a choice of where to park your cash. They used to allow investors to put cash into different investment savings account, but they did away with that couple years ago. The only choice now is in TDB8150.

In terms of buying and selling, it does not create any capital gains/losses. Technically, for tax purposes, you would need to disclose how much "other income" you generated and put that amount as part of your T3. TDW doesn't provide a T3 slip for the interest if you didn't generate a whole lot of interest income.

In terms of buying stocks and selling your TDB8150 funds, I don't believe there's an issue with that. In fact, I recall someone said that you can still buy the stock as long as you sell the TDB8150 later on the same day. That's because the settlement date would be the same. However, it would be wise of you to call TDW up and verify.


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## moose (Nov 19, 2013)

Hey guys, I just want to chime in with an article I read in the Globe and Mail this weekend which summarizes parking cash with different brokers. I think it's good reference for others too. Please let me know if the link doesn't work. There is a handy chart _way_ at the bottom of the article to sum it all up!

http://www.theglobeandmail.com/globe-investor/investment-ideas/still-in-money-market-funds-heres-a-better-way-to-park-your-cash/article19058090/


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## the-royal-mail (Dec 11, 2009)

Great responses, thanks all!


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## gibor365 (Apr 1, 2011)

_Also, say I have $10k in TDB8150 and I want to buy 3000 of stock ABC at $1.00, could I sell my $10k TDB8150 and immediately make an order for the stock, or would I have issues regarding availability of funds? _ Yes, you can buy stock right away.... I think you can even buy stock first and than redeem TDB8150....
_Is this only available to TD customers? _ I was told by rep that I can buy TDB8150 also in CIBC EI, but I buy mostly ATL5000 - same 1.25%


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## AltaRed (Jun 8, 2009)

gibor said:


> [_Is this only available to TD customers? _ I was told by rep that I can buy TDB8150 also in CIBC EI, but I buy mostly ATL5000 - same 1.25%


The issue is CIBC IE may impose a 90 holding period (or impose a penalty) on TDB8150 because they want to collect at least one trailer fee. That is typically what happens elsewhere. It is always best to buy the in-house HISA to avoid any early redemption/penalty fees. I buy AAT770 at BMOIL, DYN500 at Scotia iTrade and RBF2010 at RBC DI to avoid these issues.


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## Kaitlyn (May 13, 2011)

Thanks for all the answers guys!


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## gibor365 (Apr 1, 2011)

AltaRed said:


> The issue is CIBC IE may impose a 90 holding period (or impose a penalty) on TDB8150 because they want to collect at least one trailer fee.


No, CIBC IE will charge fees only if they are applicable in issued company.... In any case doesn't matter what you hold TDB or ATL if you get same 1.25%


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## AltaRed (Jun 8, 2009)

gibor said:


> No, CIBC IE will charge fees only if they are applicable in issued company.... In any case doesn't matter what you hold TDB or ATL if you get same 1.25%


I was not talking yield of 1.25%. I was talking an early redemption penalty (administrative fee) for having bought and then selling in a short, e.g. less than 90 day, period. Everyone should be asking their brokerages that question for non-issuing institution HISAs. 

I know for a fact that if I bought, for example RBF2010, in my Scotia iTrade account, they would ding me a redemption penalty if I held it for less than the 90 day minimum period. Not so for their own in-house HISA, the Hollis Bank DYN500. I am aware this also occurs in another brokerage or two, but am not aware which ones.


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## gibor365 (Apr 1, 2011)

AltaRed said:


> I was not talking yield of 1.25%. .


in 1st sentense I wrote "No, CIBC IE will charge fees only if they are applicable in issued company.... ", meaning if I buy TD Monthly income or so -> I cannot sell it withinn 60 days( or pay fee), TDB8150 or TD MM, I can buy and sell whenever I wish....


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## AltaRed (Jun 8, 2009)

Okay. Good for folks to know CIBC IE doesn't have that early redemption fee on non- CIBC HISA/MMF funds. At least some others do for non-inhouse funds...and hence it is best to ask first to not be surprised, or just use the in-house equivalents.


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## Blush (Jan 9, 2014)

AltaRed said:


> The issue is CIBC IE may impose a 90 holding period (or impose a penalty) on TDB8150 because they want to collect at least one trailer fee. That is typically what happens elsewhere. It is always best to buy the in-house HISA to avoid any early redemption/penalty fees. I buy AAT770 at BMOIL, DYN500 at Scotia iTrade and RBF2010 at RBC DI to avoid these issues.


I have access to RBF2010, right now I have cash parked in their high interest savings account at 1.05%. If I switch to RBF2010...is this acct the same as HISA or would I be penalized for withdrawals or transfers.


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## Albert (Jan 19, 2012)

I use TDB8150 whenever I have cash that I do not have anywhere to invest. When I am ready to buy a stock or a bond I buy the investment and then sell the equivalent in TDB8150 to settle the account. no penalties no time restrictions. insured up to 100,000.


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## AltaRed (Jun 8, 2009)

Blush said:


> I have access to RBF2010, right now I have cash parked in their high interest savings account at 1.05%. If I switch to RBF2010...is this acct the same as HISA or would I be penalized for withdrawals or transfers.


The bank's high interest savings account is provided via Royal Bank to Royal Bank branch customers only. RBF2010 is provided to Royal Bank customers via their asset management division within their branches, and also for sale the public at large via brokerages and currently pays 1.25%. 

There is no reason to hold the bank's high interest savings account other than for small amounts of dollars (although I believe one has to have at least $1000 in the account to get the 1.05% interest). RBF2010 is bought and sold like a mutual fund with no purchase or sale fees, at least within the RBC Direct Investing organization.

Added: http://www.rbcroyalbank.com/RBC:S37jy6wWZA4AJDDOQkM/products/isa/index.html
Probably best to read the fine print here http://www.rbcroyalbank.com/products/isa/_assets-custom/pdf/61826_FS_RISA_E.pdf


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## protomok (Jul 9, 2012)

Hi all,

Does anyone have any recommendations for parking cash in a Questrade account? I noticed that Questrade offers bonds, GICs and term deposits but not an in house HISA.

I tried looking up some of the HISA's listed on the theglobeandmail link posted earlier like Renaissance High Interest Savings Account (ATL5000) and TDB8150 but Questrade doesn't seem to accept these codes.

Thanks


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## Eclectic12 (Oct 20, 2010)

^^^^

Where are you looking?

When I go to the Questrade site, Trading & Investing, Mutual Funds we carry - a separate window pops up that has a section for Fund Company and a lower section of Available Funds.

When I select TD Asset Mgmt, a long list pops up that includes "TDB8150-TD INVESTMENT SAVINGS ACCOUNT".


So at least publicly they are claiming to carry the HISA.

Cheers


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## protomok (Jul 9, 2012)

Oops! Yes I was looking in the wrong place. I was trying to use the Questrade IQ Platform where I normally buy equities. I was able to find TDB8150 and other Mutual Funds by logging into MyQuestrade, clicking My Portfolio -> Mutual Funds -> Order Entry, and entering "TDB8150" in the Fund Code section.

Thanks


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## RBull (Jan 20, 2013)

I have been using RBF2010 and when wanting to access this to make a trade, have been waiting to sell the Investment HISA. 

Can someone confirm there is no need to do this?

ie no margin fees etc if I am not waiting for this transfer into cash to clear first


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## Eclectic12 (Oct 20, 2010)

^^^

I'd suggest making a call to your broker or running a test with a small amount.

If they say there is - I would ask why.

The buy of the stock should have a settlement of T+3 days and the HISA should be T+1 day - so if the buy/sell is same day or same day/next day, there should be plenty of time for the settlement to provide the cash.


Cheers


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## RBull (Jan 20, 2013)

Eclectic12 said:


> ^^^
> 
> I'd suggest making a call to your broker or running a test with a small amount.
> 
> ...


Thanks. I've never really been in a rush before but this thread just twigged the thought that maybe I've been waiting unnecessarily. I'll check next week.


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## MoreMiles (Apr 20, 2011)

Has anyone tried, Purpose HISA, symbol *PSA*?

It's traded as ETF instead of mutual fund so no holding period concern. It's 1.35%.
http://www.purposeinvest.com/funds/purpose-high-interest-savings-etf/


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## RBull (Jan 20, 2013)

^ expense is .10% so no advantage to the investment HISA. You may also be dealing with a NAV premium. They market as an alternative to money market.


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## protomok (Jul 9, 2012)

I'm also planning to move some cash to Peoples Trust which has a TFSA with 3% interest which has been available for a couple years now. Anybody using Peoples Trust? With the markets at record highs and the HISAs offering record lows I'm happy to get a 3% guaranteed return 

Although I question how People's Trust is able to provide such a higher return than everybody else. I guess since they're CDIC insured it doesn't matter but still makes me a bit uneasy :|


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## mrPPincer (Nov 21, 2011)

I have some cash in PT's 3% HISA.
I don't feel uneasy holding it there; the rate has been unchanged at 3% for over 5 years according to this table..
http://www.highinterestsavings.ca/chart/

I also have some sitting in ATL5000 in TFSA waiting for a correction in british ADR's, but if I don't find a deal before the end of the year I'll probably move that over to the PT HISA too for now.


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## gibor365 (Apr 1, 2011)

mrPPincer said:


> I have some cash in PT's 3% HISA.


Just to clarify , PT offers 3% only for TFSA, regular eSaving gives 1.8%... until end of July ING gives better rate for HISA at 2.5%... 
PT offers also good 1 y GIC at 2.35%

_ I guess since they're CDIC insured it doesn't matter but still makes me a bit uneasy :| _ I hold a lot of cash in PT, they CDIC insures, so just making sure I don't hold more than 100K on 1 account, so I have personal, my wife has personal, we have joint, my wife has joint with our son and so on


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## pastorash (Feb 3, 2014)

I just opened a Tangerine TFSA Savings account for some short term emergency funds, almost never goes above $5000. The 1.3% interest, no fees, ease of access plus having a mortgage with them was reason enough for opening it. If I ever am able to generate more emergency savings than this I'll reconsider my options.


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## Spudd (Oct 11, 2011)

Good news, you'll get 2.5% until the end of July.


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