Personal Finance

Is TDB8150 best interest account for TFSA?

  • Last Updated:
  • Apr 10th, 2014 11:19 am
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Deal Fanatic
Feb 1, 2006
9645 posts
911 upvotes
Muskoka

Is TDB8150 best interest account for TFSA?

I've been using this interest account/mutual fund for my shorter term savings in my TD TFSA, does anyone know if there is something better? Can't lock it up in a GIC, and moving the money to another institution is a pain and not worth it for $10k-$20k that I will need in next year or so. It's 1.25% (I think), CDIC protected.
2 replies
Deal Addict
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Jan 14, 2012
1457 posts
685 upvotes
Woodbridge
Haven't seen an ISA posted higher than 1.25% unfortunately.
Deal Expert
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Aug 2, 2010
15196 posts
5016 upvotes
Here 'n There
At TD it's the best for daily interest unless you want to lock it up. CDIC protected only up to $100K per account so they have some other TDB accounts where you can also park cash at 1.25% if that limit bothers you (but we should all have that problem!).

What you could do is transfer the TSFA to Tangerine and enjoy 2.5% interest until June 30, 2014. If you did that next week with $20K you'd earn 10 weeks interest at an additional 1.25% which is almost $50. Then, at the same time transfer $250 of that TSFA each to a Tangerine Chequing and Savings Account and that will get you a $50 bonus for each. The TSFA pays 1.30%/yr or 0.05% more than TD so that's another $10 interest on the $20K for the year.

So an additional $160 in your pocket for what, an hour's work? And most of that won't be taxed (unless Tangerine sends you a T5 for the bonus). Do you make that much at your job after tax in an hour? Maybe too much hassle for you but it sounds awesome to me!

https://www.tangerine.ca/en/landing-pag ... index.html

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