Personal Finance

Need advice for high interest RSP Money Market fund

  • Last Updated:
  • Nov 17th, 2018 10:45 pm
[OP]
Newbie
User avatar
Oct 25, 2018
10 posts
7 upvotes
Kelowna

Need advice for high interest RSP Money Market fund

I'm currently in TDB8150 paying 1.6% in an RSP account, but I'm looking for larger yield. That money is green with envy at all the non-registered HISAs paying out 3+% (teaser rates)...

I'd maybe consider 90-day GICs, but would prefer Money Market funds to stay as liquid as possible. Any advice is appreciated.
3 replies
Deal Fanatic
Jul 1, 2007
8068 posts
900 upvotes
You would transfer it from an RSP with one institution (and pay the transfer out fee) to another to get a fraction of a percent more?

I assume it has to remain liquid for a potential home buyer plan withdrawal? If that's the case, some GIC under 1 year might be your only choice at TD.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
[OP]
Newbie
User avatar
Oct 25, 2018
10 posts
7 upvotes
Kelowna
I wouldn't do it for a fraction of a percent, but the teaser rates I'm seeing for HISAs are almost double what I'm getting right now. That's quite a sizeable increase given the amounts I'm dealing with.

Besides, most FIs will pay the transfer out fee on your behalf if you open up a new account with them or transfer a large sum.

Cashable GICs at TD pay a lot less than the TD Money Market.
Member
Jan 4, 2017
305 posts
139 upvotes
TD tends not to be competitive with savings and GIC rates, at least not compared to the likes of Tangerine and that lot. If you've decided it's worth moving around, what you want to be doing is looking for another FI that has a promo on right now, especially if they're willing to cover your transfer fee. I see this frequently enough across various FI - just do a search, not sure if they'd be able to do a transfer 'in kind', but you should still be able to avail of the promo.

An example after a quick search:

https://www.scotiaitrade.com/en/direct- ... rades.html

See which one offers the best promo and get the receiving FI to initiate the transfer.

Top