US Cash Alternatives
US Cash Alternatives
I'm looking for alternatives for stashing $25K in US currency for around 6 months at TDDI/TDCT/TD Bank US. The best options I can find are:
- $US ISA TDB8152 (yielding 0.4%)
- 6 month $US term deposit (yielding 0.45%)
- TD US Money Market TDB166 (yielding 0.55%)
Are there any other alternatives? If not, I 'll go with TD US Money Market.
- $US ISA TDB8152 (yielding 0.4%)
- 6 month $US term deposit (yielding 0.45%)
- TD US Money Market TDB166 (yielding 0.55%)
Are there any other alternatives? If not, I 'll go with TD US Money Market.
Re: US Cash Alternatives
finiki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
Re: US Cash Alternatives
Thanks Adrian. Your suggestions look much better than TDDI's fund. I'll check tomorrow whether there is any purchase/redemption fee if these funds are bought through TDDI.
Re: US Cash Alternatives
Both of them are money market; there are no fees and no minimum holding periods at TDDI.
finiki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
Re: US Cash Alternatives
Can anyone confirm whether USD MM funds and HISA are taxed differently? This thread appears to indicate this is the case but I am not sure: http://www.financialwisdomforum.org/for ... p?t=117031
Re: US Cash Alternatives
The standard rate for 25k at TDCT is .65%. Bank employees have a further 10-15 basis point discretionary ability which should get you to .8%.
Better yields available by taking more risks, not personally interested for so little extra benefit but to each his own. Analyzing what's in those MM instruments seems like a headache, very few familiar names.
Re: US Cash Alternatives
The yield numbers from Fund Library don't appear to be accurate. The Fund Library links show a yield in $ rather than %. For CIB483, Fund Library shows a yield of $0.9994 on Mar 24 2017. That number doesn't make any sense. Also Fund Library shows a different yield every day, which also doesn't make sense, since the distribution is paid monthly at the end of each month, so there is no way to determine a daily yield.
TDDI says CIB483 has a yield of 0.73%. That corresponds with Globefund which shows the TTM distribution as $0.0731, and also corresponds with Morningstar which shows the TTM yield as 0.73%.
It's a similar situation with the Fund Library numbers for RBF261. So I would disregard the numbers in the links from Fund Library.
Re: US Cash Alternatives
I agree that the column heading is wrong, it should have been Yield [%].
The yield does fluctuate daily, even though distributions are paid monthly. With enough data available, it would make perfect sense to display a daily yield.Also Fund Library shows a different yield every day, which also doesn't make sense, since the distribution is paid monthly at the end of each month, so there is no way to determine a daily yield.
TTM yield is not necessarily the same as the current yield.TDDI says CIB483 has a yield of 0.73%. That corresponds with Globefund which shows the TTM distribution as $0.0731, and also corresponds with Morningstar which shows the TTM yield as 0.73%.
I have used the information from them in the past and it was reliable.So I would disregard the numbers in the links from Fund Library.
finiki, the Canadian financial wiki
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
Re: US Cash Alternatives
USD MMF and USD HISA and USD cash under your mattress or in your wallet are all subject to the Capital gains rules. See this article, for examples http://www.theglobeandmail.com/globe-in ... e28440263/gobsmack wrote: ↑26 Mar 2017 18:05 Can anyone confirm whether USD MM funds and HISA are taxed differently? This thread appears to indicate this is the case but I am not sure: http://www.financialwisdomforum.org/for ... p?t=117031
Re: US Cash Alternatives
Sorry. I should have been more precise. My question had to do with the following comment: http://www.financialwisdomforum.org/for ... 31#p522241DavidR wrote: ↑27 Mar 2017 13:45USD MMF and USD HISA and USD cash under your mattress or in your wallet are all subject to the Capital gains rules. See this article, for examples http://www.theglobeandmail.com/globe-in ... e28440263/gobsmack wrote: ↑26 Mar 2017 18:05 Can anyone confirm whether USD MM funds and HISA are taxed differently? This thread appears to indicate this is the case but I am not sure: http://www.financialwisdomforum.org/for ... p?t=117031
It says that moving USD cash to USD MMF might trigger capital gains (unlike moving USD cash to USD HISA).
Re: US Cash Alternatives
I believe that is correct. A MMF is a different type of financial instrument than a chequing account or a savings account.gobsmack wrote: ↑27 Mar 2017 14:02 Sorry. I should have been more precise. My question had to do with the following comment: http://www.financialwisdomforum.org/for ... 31#p522241
It says that moving USD cash to USD MMF might trigger capital gains (unlike moving USD cash to USD HISA).
Re: US Cash Alternatives
I've decided to stash my USD in a 6 month USD GIC. CRA bulletin IT-95R says that USD can be moved between cash and term deposits (i.e. GIC's) without being considered as a disposition, so I won't have to worry about triggering any capital gain.
Re: US Cash Alternatives
I had similar situation sometime ago. What's the rate for 6 month USD GIC? Is it with TD?
I know Hubert offers 0.75% on USD savings account but that's not covered by CDIC but Manitoba Credit Union.
Re: US Cash Alternatives
I bought my USD GIC through TDDI, but the GIC is issued by TD Bank. The rate varies, depending on the amount of the GIC. The 6 month rate is 0.6% for amounts of $5K-$25K, and 0.75% for amounts of $25K-$100K. If you have a TDDI account, you can see the rates online - go to Trading > Fixed Income > GIC.
Re: US Cash Alternatives
Thank you for the information. I wanted to open a TDDI account but its promotion was ending when I thought about that so I postponed.Arby wrote: ↑30 Mar 2017 10:00I bought my USD GIC through TDDI, but the GIC is issued by TD Bank. The rate varies, depending on the amount of the GIC. The 6 month rate is 0.6% for amounts of $5K-$25K, and 0.75% for amounts of $25K-$100K. If you have a TDDI account, you can see the rates online - go to Trading > Fixed Income > GIC.
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Re: US Cash Alternatives
Apparently, TD bank offers not as good rates on USD GIC without a TDDI account. Did you buy the USD GIC online in your TDDI account or do you need to phone in to do that?Arby wrote: ↑30 Mar 2017 10:00I bought my USD GIC through TDDI, but the GIC is issued by TD Bank. The rate varies, depending on the amount of the GIC. The 6 month rate is 0.6% for amounts of $5K-$25K, and 0.75% for amounts of $25K-$100K. If you have a TDDI account, you can see the rates online - go to Trading > Fixed Income > GIC.
Re: US Cash Alternatives
This is incorrect. TD bank has at the very least the same listed rates and in many instances higher rates. Plus you can get another 10-15 basis points on top through your branch rep.Wing wrote: ↑14 Apr 2017 13:49Apparently, TD bank offers not as good rates on USD GIC without a TDDI account. Did you buy the USD GIC online in your TDDI account or do you need to phone in to do that?Arby wrote: ↑30 Mar 2017 10:00I bought my USD GIC through TDDI, but the GIC is issued by TD Bank. The rate varies, depending on the amount of the GIC. The 6 month rate is 0.6% for amounts of $5K-$25K, and 0.75% for amounts of $25K-$100K. If you have a TDDI account, you can see the rates online - go to Trading > Fixed Income > GIC.
Re: US Cash Alternatives
Then I must have reached an unhelpful branch rep.gsp_ wrote: ↑15 Apr 2017 13:39This is incorrect. TD bank has at the very least the same listed rates and in many instances higher rates. Plus you can get another 10-15 basis points on top through your branch rep.Wing wrote: ↑14 Apr 2017 13:49Apparently, TD bank offers not as good rates on USD GIC without a TDDI account. Did you buy the USD GIC online in your TDDI account or do you need to phone in to do that?Arby wrote: ↑30 Mar 2017 10:00
I bought my USD GIC through TDDI, but the GIC is issued by TD Bank. The rate varies, depending on the amount of the GIC. The 6 month rate is 0.6% for amounts of $5K-$25K, and 0.75% for amounts of $25K-$100K. If you have a TDDI account, you can see the rates online - go to Trading > Fixed Income > GIC.
Re: US Cash Alternatives
It depends on the time period and the amount of the term deposit. In some instances, the posted rates for TDDI's USD term deposit is higher than the posted rate for TD Bank. For example, a USD $25K term deposit for 120-179 days, TDDI posted rate is 0.6%, and TD bank is 0.55%. There are other instances where the TD bank posted rate is higher.
Re: US Cash Alternatives
If you step away from the term being discussed(6 months) and ignore the rate discretion at the branch level, sure. Perhaps the rate discretion isn't available at all investment levels? Not sure, I have several of the higher level ones.Arby wrote: ↑15 Apr 2017 19:27It depends on the time period and the amount of the term deposit. In some instances, the posted rates for TDDI's USD term deposit is higher than the posted rate for TD Bank. For example, a USD $25K term deposit for 120-179 days, TDDI posted rate is 0.6%, and TD bank is 0.55%. There are other instances where the TD bank posted rate is higher.
Re: US Cash Alternatives
I'm being offered by my bank with 0.85% on 90 day term deposit and 0.70% for 30 day term deposit for USD 50k and more (bank, not investment account). That's an increase of 0.25% from a month ago. Do you get an increase in TDDI as well? I still want to open an account at TDDI but only if their rates are good for my USD.Arby wrote: ↑30 Mar 2017 10:00I bought my USD GIC through TDDI, but the GIC is issued by TD Bank. The rate varies, depending on the amount of the GIC. The 6 month rate is 0.6% for amounts of $5K-$25K, and 0.75% for amounts of $25K-$100K. If you have a TDDI account, you can see the rates online - go to Trading > Fixed Income > GIC.
Re: US Cash Alternatives
Wondering if these USD MMF and GIC/term deposit follow the rate hike this week. My bank, HSBC, doesn't follow.