Personal Finance

Short term investment

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  • Jun 28th, 2005 8:42 pm
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[OP]
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Nov 7, 2004
162 posts
Vancouver

Short term investment

I'm buying a house soon (in fact we were supposed to move in a month ago). But anyway the move in date has been moved back to October/November 2005. The deposit money is mainly in my egg account in the UK generating 4.75% but I have been transferring it bit by bit (when the exchange rate is half decent) and I currently have $25,000 CAD here in Canada in a crappy cashable 1.9% GIC at RBC (at the advise of my account manager). I remember reading about Acheiva and Outlook financial on this page, I know I should move the money but wasn't sure which way to go.

Big K
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Jul 27, 2004
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i'd keep it in the uk at 4.75% no point in moving it here as you're not going to get anything close to it for a 4 month investment.
Back for a limited engagement.
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Apr 29, 2002
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Mississauga
15-20_God wrote:i'd keep it in the uk at 4.75% no point in moving it here as you're not going to get anything close to it for a 4 month investment.
Factor in the exchange rate and I doubt you would even come close to achieving a 4.75 here in Canada.

How'd you get 4.75 anyways?? UK savings?
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Aug 4, 2003
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Yes I'm curious as well.

Interest rates in the UK are alot higher from I'm told.
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Jul 20, 2002
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bigknickers wrote:I'm buying a house soon (in fact we were supposed to move in a month ago). But anyway the move in date has been moved back to October/November 2005. The deposit money is mainly in my egg account in the UK generating 4.75% but I have been transferring it bit by bit (when the exchange rate is half decent) and I currently have $25,000 CAD here in Canada in a crappy cashable 1.9% GIC at RBC (at the advise of my account manager). I remember reading about Acheiva and Outlook financial on this page, I know I should move the money but wasn't sure which way to go.

Big K
Keep your 4.75% UK account, but cash your RBC GICs and put the funds in the ING savings 2.4% account.
Member
Aug 12, 2004
386 posts
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Calgary
According to Interest Rate Parity, if the money is coming to Canada eventually anyways, might as well bring it all over. The discrepancy in interest rates between the two currencies is offset by the exchange rate.
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Jul 27, 2004
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StarvinStudent wrote:According to Interest Rate Parity, if the money is coming to Canada eventually anyways, might as well bring it all over. The discrepancy in interest rates between the two currencies is offset by the exchange rate.
so i guess exams have jsut finished?
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Aug 12, 2004
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Calgary
15-20_God wrote:so i guess exams have jsut finished?
:) Spring semester finished last week
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Jul 27, 2004
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StarvinStudent wrote: :) Spring semester finished last week
don't worry, you'll forget everything soon enough.
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[OP]
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Nov 7, 2004
162 posts
Vancouver
The exposure on the currency will cost me way more than any potential interest on my savings so I'm bring it over in $25k amounts when the rates are high. Having just read the sticky I'm going with Acheiva.

Big K

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