Personal Finance

USD Medium Term Savings

  • Last Updated:
  • Apr 13th, 2018 10:37 am
Newbie
Jan 17, 2018
14 posts

USD Medium Term Savings

Where is the best place/strategy to park a large amount of USD for 2-4 years in a risk-free/extremely low risk manner? Currently in a 0.75% savings account in Canada, with a Scotia USD account for chequing/credit.
Options include Alliant Certificate, TD Ameritrade CD, or other (Canadian Brokerage?).
2 replies
Deal Addict
Oct 4, 2009
3587 posts
2945 upvotes
Montreal
fogetmylogin wrote: USD GIC should give you 2%+ for that time period. Should be easy enough to buy at your bank. If you are talking about a very large amount it could be worth shopping around more and/or spreading between banks to ensure CDIC coverage. In most scenarios where Scotiabank has failed I imagine the dollar is worth a lot less than now so theoretically you should use a worst case scenario when calculating the USD equivalent to the CAD$100k limit.
There is no CDIC coverage of USD assets.
Wealthsimple Premium
Newbie
Jan 17, 2018
14 posts
fogetmylogin wrote: USD GIC should give you 2%+ for that time period. Should be easy enough to buy at your bank. If you are talking about a very large amount it could be worth shopping around more and/or spreading between banks to ensure CDIC coverage. In most scenarios where Scotiabank has failed I imagine the dollar is worth a lot less than now so theoretically you should use a worst case scenario when calculating the USD equivalent to the CAD$100k limit.
Interesting idea but looks like the big banks are only offering 0.7% for 4 years (https://www.tdcanadatrust.com/GICs/GICT ... _inc_b.jsp or https://www.rbcroyalbank.com/investments/gic-rates.html), and Ratehub seems to agree. My Hubert Savings is giving more, and Alliant 4 year jumbo would be 2.25%.

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