Entrepreneurship & Small Business

What's the best way to invest operating cashflow that you might need in a month

  • Last Updated:
  • Dec 7th, 2018 10:17 am
[OP]
Newbie
Nov 26, 2018
1 posts

What's the best way to invest operating cashflow that you might need in a month

Hi there.

I have a small business and it constantly has about 200,000 cash sitting in its account. I am wondering what are the best short term no risk investment options out there?

Obvious choice would be an high interest rate saving account with an online bank. Just seeing if there is anything more creative than this.

Thank you.
9 replies
Deal Fanatic
Jul 4, 2004
7584 posts
617 upvotes
For business savings you're pretty limited. I business bank with Oaken Financial which pays 1.50%. You can also open up a business savings account with Meridian which has either comparable or better rates.
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Newbie
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Dec 1, 2018
1 posts
Singapore
You can get a sweep account from your bank. Basically you can put funds into your sweep account which has a higher interest rate than your normal business account that you don't need at the moment, but still have the liquidity.
Deal Guru
Aug 2, 2010
12932 posts
3231 upvotes
Here 'n There
decisivemarketer wrote:
Dec 2nd, 2018 10:05 am
You can get a sweep account from your bank. Basically you can put funds into your sweep account which has a higher interest rate than your normal business account that you don't need at the moment, but still have the liquidity.
Yes but all it does is automate moving money bank and forth between a higher interest account, which is the same 'ole one you can use manually, and your chequing account.
Deal Fanatic
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Nov 18, 2002
6945 posts
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Toronto
Cibc and probably others have flexible gic with a 30 day min that pay about 1.5 ish. Oaken I detest for the initiation hurdles.

Wealthsimple has a savings equivalent that has paid me close to 2.5% last year.

There are options.
Deal Guru
Aug 2, 2010
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ichpen wrote:
Dec 6th, 2018 9:17 am
Cibc and probably others have flexible gic with a 30 day min that pay about 1.5 ish. Oaken I detest for the initiation hurdles.

Wealthsimple has a savings equivalent that has paid me close to 2.5% last year.

There are options.
Wealthsimple looks like the best bet as the net rate to you is 2% right now, no fees for withdrawal or deposit, no minimum and no fixed term but it takes up to 2+ business days to withdraw. I am surprised they can provide that high a rate with no term.
Deal Fanatic
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Nov 18, 2002
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eonibm wrote:
Dec 6th, 2018 2:42 pm
Wealthsimple looks like the best bet as the net rate to you is 2% right now, no fees for withdrawal or deposit, no minimum and no fixed term but it takes up to 2+ business days to withdraw. I am surprised they can provide that high a rate with no term.
Yeah I've been impressed with them so far. Very easy to deal with. They have a fair number of risk free or very low risk options for just storing operating cash but you have to call them.
Deal Guru
Aug 2, 2010
12932 posts
3231 upvotes
Here 'n There
ichpen wrote:
Dec 6th, 2018 3:07 pm
Yeah I've been impressed with them so far. Very easy to deal with. They have a fair number of risk free or very low risk options for just storing operating cash but you have to call them.
I am curious why if you have that much cash 'constantly' in your account why aren't you investing it or moving it outside the corp? I only keep the working capital I need in my corporate account. The rest gets paid up to my holdco as dividends which flow tax-free, not to mention it removes it as an asset of my active corporation.

I'm not that impressed with Wealthsimple. They charge a premium for what Vanguard does cheaper. The premium you pay them is funding the great marketing they do compared to Vanguard.

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