Personal Finance

$20K - MM vs. High Interest Savings Acc't

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  • Aug 1st, 2009 1:03 am
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[OP]
Newbie
Jan 5, 2008
24 posts
toronto

$20K - MM vs. High Interest Savings Acc't

I was hoping to get some advice on where I should park my $$ for 8 months..

Situation: Tuition payment due in 8 months ~$20K
Question: Is it better to park my $$ in a money market fund (i.e. TD) vs. a high-interest savings account (i.e. ING)?

Any insights would be greatly appreciated.
Thanks.
5 replies
Deal Addict
Jul 28, 2005
3237 posts
25 upvotes
TD Money Market is currently yielding 0.19%
TD Premium Money Market ($100k min investment) is currently yielding 0.37%

Most of the big money markets should be doing roughly the same or worse.

ING is currently offering 1.2%


Unless short terms interest rates rise quite a bit and for some reason savings accounts don't rise with the short term interest rates, you'll probably be much better off with a savings account.
Newbie
Jul 7, 2009
34 posts
4 upvotes
Toronto
ING TFSA is offering 3% Till October 2009 - can only put in 5G though.
[OP]
Newbie
Jan 5, 2008
24 posts
toronto
@asdfvcx, good point abt interest rates....expected to stay low for a while.
I guess its safer to simply keep it in an ING account.

If there's any other suggestions on somewhere where I can park $$ for 10 months, please advise.
Thank you.

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