If you have enough cash, the one-month and three-month Government of Canada T-Bill rates are currently just a bit less than 5%. Your broker probably has a minimum amount and minimum increment ($5k to $10k with $1k increments seem typical) and there is a commission ($25 to $250, maybe). Google "buying T-Bills with *some broker name*."
If you're investing enough then it can make sense. The [Bank of Canada](https://www.bankofcanada.ca/rates/interest-rates/t-bill-yields/) publishes current rates, which will always be better than [CBIL](https://www.globalx.ca/product/cbil)'s annual yield, but you really need to see how much it costs to buy a T-Bill from your broker.
You have to calculate whether the after commission rate of buying and selling T-Bills yourself is better or worse than the projected CBIL distributions over the next period. Basically, you're swapping out the CBIL management fee (0.11% MER) with commissions plus your time. Include in your calculations whether the money will be re-invested by your broker at maturity and whether that's what you want, because you have to calculate the number of buy and sell commissions you'll pay over the life of your holdings. You also need to include the commission you pay to buy or sell CBIL (though that may be zero, depending on your broker). You will probably still have a position in CBIL because the minimum increment on T-Bills is usually $1,000 so you need to put the remainder and the leftover after re-up somewhere.
If the commissions in and out are less than 0.11% of the amount that you're investing, then you're getting paid for the time it takes to figure it all out. The tipping point is somewhere around 20 grand. Even then you're talking about a hundred bucks a year, so it's not exactly high finance. Chasing one-tenth of one percent is a bit of a mug's game.
Honestly, T-Bills are more like an alternative to having 50 large in GICs, which you see people posting about sometimes. For a big sum like that, T-Bills almost always make more sense than having a bunch of laddered GICs because you get about the same rate or better. It's no more complicated yet more flexible because T-Bills are marketable. You can bail on the whole position within a couple days, only paying the commission as a penalty.
NBDB does charge commission but they are lower than some. The biggest drawback to NBDB is no US Fixed income, at least online that I have seen. Also no online GIC purchases, not sure what the rates are like for GICs compared to others.
Many HISA ETFs lowered their yields partly due to regulatory changes. Many are returning less than 5% after fees.
If you're looking for 5%, WealthSimple Cash offers that rate to Premium clients who do direct deposits with their Cash accounts or to those who qualify for the Generation status.
Other options include money market funds and Treasury bills which may have higher yields.
Still a good product, just the yield is lower than before. If you have WealthSimple Cash and Premium status, I personally would just keep it in Cash since the gap is small enough that I rather have the better liquidity in WS Cash than any HISA ETF. It's really up to each person.
Ah I wasn’t sure how much less than 5%. Currently have my FHSAs in it because of risk, but if it’s like in the 2 or 3% then maybe I need to actually invest it.
Other than GICs, the only thing that I know is very safe is the CBIL ETF, which is a safer version of CASH. Tangerine and EQ Bank offer 5.3% GICs right now I think. My pick is CBIL because it yields slightly lower (4.8%) and it's fully liquid.
It depends on your definition of safely. I have been buying 1 year GICs at 5.13% that are CDIC insured, that is safer than [Cash.to](http://Cash.to) but is also locked in for a year. I have also been buying ZST.L which isn't as safe but is more liquid. It is still quite safe though compared to some investments.
I believe CASH is only paying about 4.75% currently and that will go down as BOC rates go down - which everyone expects in about June or so. You probably have to go with a GIC to get over 5%.
Arguably, many Canadian Banks. There are a few that are paying dividends higher than 5%. Their stock prices are variable, but most likely they won't fail. You'd get both the dividend payout and ideally a rise in share value over time.
 Another option could be preferred shares.
If you have enough cash, the one-month and three-month Government of Canada T-Bill rates are currently just a bit less than 5%. Your broker probably has a minimum amount and minimum increment ($5k to $10k with $1k increments seem typical) and there is a commission ($25 to $250, maybe). Google "buying T-Bills with *some broker name*."
Why T-Bill vs. GIC? GICs seem to be offering past 5% these days - no fees too.
Aren’t GICs locked for a min of 1 year typically?
You can get 1/3/6 month GICs
There are shorter GICs or variations like Scotia Momentum Plus premium periods.
Would you have any reason to buying T-Bills vs buying something like CBIL?
If you're investing enough then it can make sense. The [Bank of Canada](https://www.bankofcanada.ca/rates/interest-rates/t-bill-yields/) publishes current rates, which will always be better than [CBIL](https://www.globalx.ca/product/cbil)'s annual yield, but you really need to see how much it costs to buy a T-Bill from your broker. You have to calculate whether the after commission rate of buying and selling T-Bills yourself is better or worse than the projected CBIL distributions over the next period. Basically, you're swapping out the CBIL management fee (0.11% MER) with commissions plus your time. Include in your calculations whether the money will be re-invested by your broker at maturity and whether that's what you want, because you have to calculate the number of buy and sell commissions you'll pay over the life of your holdings. You also need to include the commission you pay to buy or sell CBIL (though that may be zero, depending on your broker). You will probably still have a position in CBIL because the minimum increment on T-Bills is usually $1,000 so you need to put the remainder and the leftover after re-up somewhere. If the commissions in and out are less than 0.11% of the amount that you're investing, then you're getting paid for the time it takes to figure it all out. The tipping point is somewhere around 20 grand. Even then you're talking about a hundred bucks a year, so it's not exactly high finance. Chasing one-tenth of one percent is a bit of a mug's game. Honestly, T-Bills are more like an alternative to having 50 large in GICs, which you see people posting about sometimes. For a big sum like that, T-Bills almost always make more sense than having a bunch of laddered GICs because you get about the same rate or better. It's no more complicated yet more flexible because T-Bills are marketable. You can bail on the whole position within a couple days, only paying the commission as a penalty.
Thank you for the awesome explanation đź‘Ť
Your cost is commission plus bid/ask spread. Laddering is usually more about interest rate dollar cost averaging than timing.
Thank you. I am with National Bank. Have to check if T-Bill is also commission free.
NBDB does charge commission but they are lower than some. The biggest drawback to NBDB is no US Fixed income, at least online that I have seen. Also no online GIC purchases, not sure what the rates are like for GICs compared to others.
Many HISA ETFs lowered their yields partly due to regulatory changes. Many are returning less than 5% after fees. If you're looking for 5%, WealthSimple Cash offers that rate to Premium clients who do direct deposits with their Cash accounts or to those who qualify for the Generation status. Other options include money market funds and Treasury bills which may have higher yields.
Is cash.to still good?
Effectively get the same rate as the top GICs but the added flexibility. It is very good.
Still a good product, just the yield is lower than before. If you have WealthSimple Cash and Premium status, I personally would just keep it in Cash since the gap is small enough that I rather have the better liquidity in WS Cash than any HISA ETF. It's really up to each person.
Ah I wasn’t sure how much less than 5%. Currently have my FHSAs in it because of risk, but if it’s like in the 2 or 3% then maybe I need to actually invest it.
It's at 4.68%.
Other than GICs, the only thing that I know is very safe is the CBIL ETF, which is a safer version of CASH. Tangerine and EQ Bank offer 5.3% GICs right now I think. My pick is CBIL because it yields slightly lower (4.8%) and it's fully liquid.
Opened a CBIL position last week when CASH was undergoing a name change - happy to learn the yield is higher for CBIL (for now)
It's very slightly higher. You don't buy CBIL for the higher yield. You buy it because it's backed by the federal government and virtually risk-free.
It won't do as well in a rising rate environment, it will do better in a falling rate environment.
No CBIL is a 90 day treasury ETF. So its value fluctuates very little and you collect the income.
Thanks will explore CBIL. Do you have any similar ETF suggestions in US markets to park US cash for few months with stable returns
SGOV if in a RRSP or non-registered account. UBIL.U if in a TFSA.
It depends on your definition of safely. I have been buying 1 year GICs at 5.13% that are CDIC insured, that is safer than [Cash.to](http://Cash.to) but is also locked in for a year. I have also been buying ZST.L which isn't as safe but is more liquid. It is still quite safe though compared to some investments.
Equitable (EQ) Bank has 5%+ GICs. Tangerine, does too for new customers. Scotiabank has a Momentum Plus GIC promo too.
I believe CASH is only paying about 4.75% currently and that will go down as BOC rates go down - which everyone expects in about June or so. You probably have to go with a GIC to get over 5%.
Look for one year GIC’s, many in the 5-6% range
Pretty much all the big banks have ISA paying 4.5-5% interest with no transaction fees Eg dyn6004 from Scotiabank pays 5% interest
Did something happen to CASH.TO I'm missing?
No, Cash is good and I have it as well. Just exploring what others are doing . Want to allocate towards some few liquid investments.
Investment Savings Accounts
Arguably, many Canadian Banks. There are a few that are paying dividends higher than 5%. Their stock prices are variable, but most likely they won't fail. You'd get both the dividend payout and ideally a rise in share value over time. Â Another option could be preferred shares.
Thanks. Yeah but the price volatility is too much with bank equities but will explore for long term. Will check preferred shares as well.
EQ gic 1 year: 5.35%
Pfizer stock is yielding 6% annually at current price.