[Money] ING Direct 90-days Short-Term RSP/TFSA GIC 2.5%

[Coolisme]

http://www.ingdirect.ca/savehappy/index.html (link as provided by faithfulness' post, Rate until February 29, 2012)

ING Direct's 90-days Short-Term RSP/TFSA GIC is currently at 2.5% which is higher that the current 1.5% ISA rate (2% RSP/TSFA rate) and higher than the rest of the longer term rates. Their 5-year rates are at 2.35% for example.

Not super hot, but if you have some money lying around, you should consider this.

[cartfan123]

Yeah that's pretty sweet for a 90day TSFA GIC. I just bought one off your tip. Thanks

May want to make sure you 'redeem principle & interest' if you don't want to roll it in 90days when the rate may be back to normal (lower).

[intelmic]

Thanks.

But fyi, the regular rate for a RSP / TFSA account is 2.00%.
So you only gain 0.50% over what you would have gain by staying in a regular RSP / TFSA account. (And that 0.50% gain is only over a quarter of a year...)

[faithfulness]

Here: http://www.ingdirect.ca/savehappy/index.html

Rate until February 29, 2012.

[intelmic]

Dummy question here:

I have 3,000$ in my TFSA account (#1) and want to open this TFSA 90 day GIC. (#2)

I set up so that #1 is debited and #2 is created with money from #1.

I just want to make sure this creation of #2 is not considered using new money from 2012 (and contribution room)?

[Coolisme]

As long as you're using TFSA money to buy a TFSA GIC, it is NOT considered as part of the annual contribution. The example you gave is perfectly fine. I've done it many times myself with RSPs into RSP GICs and TFSA into TFSA GICs.

[smackioio]

Don't forget that you can make a 25$ bonus when using an Orange Key. Only if you are not an existing ING client, of course (valid only for new customers).

ENjoy!

[Tha_Doggg]

So how much money can you transfer from the TFSA to the 90 day GIC without incurring a penalty? Also, at maturity the money gets transferred back to your TFSA, correct?

[RobMyaz]

So how much money can you transfer from the TFSA to the 90 day GIC without incurring a penalty? Also, at maturity the money gets transferred back to your TFSA, correct?

as much as you currently have in your TFSA. If you have 10,000 in there right now, you can put all 10,000$ in this GIC. As long as you stay under the "umbrella" of the TFSA, you are OK.

[ultracrt]

You may redeem the GIC before the end of the term, but if you do so, you will not receive any interest.

Do it only you are 100% certain you do not need that money within the next 90 days.

[crownme]

Awesome - thanked!

Stupid question but I just wanted to make sure - can I give an Orange Key to a person with the same address?

[ShopperfiendTO]

Also, at maturity the money gets transferred back to your TFSA, correct?

You have to set it up to do this when you make the purchase/transfer. More discussion (esp. starting at post #20):

http://forums.redflagdeals.com/ing-r...5-a-1126193/2/

[Seifer]

Awesome - thanked!

Stupid question but I just wanted to make sure - can I give an Orange Key to a person with the same address?

Yes you can

[qewcool]

as much as you currently have in your TFSA. If you have 10,000 in there right now, you can put all 10,000$ in this GIC. As long as you stay under the "umbrella" of the TFSA, you are OK.

your maximum TFSA contribution from 2009-2012 (ie now) is 20K (5K per year) so the maximum you can put into the 90 days GIC should be more around that number than 10K.

Of course the number could change a bit adding interest and depending on if you had withdrawn some money from the account and not earned maximum interest since when you created the tfsa account.

[tsis3]

Thanks! 2.5% is a pretty good rate nowadays! Thanks!