$500,000 ???

Jul 17th, 2021 10:44 am

#1

love2save [OP]: Deal Addict; Dec 1, 2012; 1812 posts; 1565 upvotes; Lake Simcoe

Jul 17th, 2021 10:44 am

If someone has $500k in cash with no debt to service....(As that would be the first consideration for funds)
How much would they earn per year keeping it in a Canadian bank? Is it 1% 3% 5% -- What are they paying now? Their websites are usually generic, and thought some of you might have more available knowledge to share.
Thanks.

Jul 17th, 2021 10:49 am

#2

S5: Deal Addict; Oct 4, 2009; 3476 posts; 2774 upvotes; Montreal

Jul 17th, 2021 10:49 am

https://www.highinterestsavings.ca/chart/

Rates are posted on bank websites but not nearly as prominently as they use to be, especially with big banks who generally pay terrible interest rates.

+2

Jul 17th, 2021 11:00 am

#3

love2save [OP]: Deal Addict; Dec 1, 2012; 1812 posts; 1565 upvotes; Lake Simcoe

Jul 17th, 2021 11:00 am

S5 wrote: ↑ https://www.highinterestsavings.ca/chart/

Rates are posted on bank websites but not nearly as prominently as they use to be, especially with big banks who generally pay terrible interest rates.

Thank-you.

+1

Jul 18th, 2021 5:43 pm

#4

Gungnir: Deal Addict; Oct 21, 2014; 1877 posts; 2802 upvotes; Burlington, ON

Jul 18th, 2021 5:43 pm

love2save wrote: ↑ If someone has $500k in cash with no debt to service....(As that would be the first consideration for funds)
How much would they earn per year keeping it in a Canadian bank? Is it 1% 3% 5% -- What are they paying now? Their websites are usually generic, and thought some of you might have more available knowledge to share.
Thanks.

The real money comes from owning Canadian banks rather than keeping the money in them

+12

Jul 18th, 2021 7:01 pm

#5

Janus2faced: Deal Addict; Dec 8, 2020; 1884 posts; 2282 upvotes; West Rouge, Ontario

Jul 18th, 2021 7:01 pm

Gungnir wrote: ↑ The real money comes from owning Canadian banks rather than keeping the money in them

^^^ agree.

pick your favourite bank put 50% into the common shares, collect dividends, the other 50% into an HISA

alternative choices below or mix & match

20% HISA

20% ZEB dividend 3.3%

20% SBC dividend 8.27%

20% BNS dividend 4.585%

20% EIT.UN dividend 9.828%

wasting time doing unimportant things

+4

Jul 18th, 2021 7:20 pm

#6

cn_habs: Deal Fanatic; Jun 3, 2009; 5675 posts; 1532 upvotes; Montreal

Jul 18th, 2021 7:20 pm

Gungnir wrote: ↑ The real money comes from owning Canadian banks rather than keeping the money in them

OP stands to make a lot from owning the bank shares if he has any medium to long horizon.

+3

Jul 18th, 2021 10:42 pm

#7

will888: Deal Expert; Dec 12, 2009; 27697 posts; 18105 upvotes; Toronto

Jul 18th, 2021 10:42 pm

If this money is available for long term investing, just buy equal weight in the big 6 banks and collect about 4% annually in tax efficient dividends.

~~Koodo $40/6GB~~
Public Mobile $117/90GB/90 days, $102/60GB/90 days, $25/5GB, lot less with rewards
Tangerine Bank, EQ Bank, Simplii

+3

Jul 19th, 2021 7:49 am

#8

love2save [OP]: Deal Addict; Dec 1, 2012; 1812 posts; 1565 upvotes; Lake Simcoe

Jul 19th, 2021 7:49 am

Thanks for all the input.... It's most appreciated.

Jul 19th, 2021 5:09 pm

#9

johnnychi: Deal Addict; Jun 28, 2018; 1031 posts; 789 upvotes; Toronto

Jul 19th, 2021 5:09 pm

Also Canadian Deposit Insurance limit for bank accounts is $100K if that off chance of a banking system conflagration concerns you. CIPF is $1,000,000 for trading accounts.

The Distracted Investor

Dividends through quality companies

Though I usually lose money with trades

+1