Where to park money in Canada in interest bearing account?

[mcfarms]

Thanks everyone.

I bank at BMO and in my quick online look at their website only found 3.95% GIC's which I thought was way too low, but did not know what the going rate is. Have not stopped in at the bank yet as my deferred grain checks are here in January.

Not sure what time frame to pick as I might need this money in a year if there is a recession. This is my first real savings to park, so not ready to tie it all up in stocks and bonds and whatever else there is. Hopefully I get there, like lots of the financially well off members of this site.

It will be inside of a corporations, but no issues exceeding the passive interest rules for a while.

MCfarms, is the rbcdirect site that you used for the GIC rates a bank site or a brokerage site? Thanks for posting those.

The rates I posted were off the RBC direct investing site that is the "do it yourself" brokerage at RBC they also have full service divisions, you're at BMO so their version is BMO investor line.
Some people prefer to have an advisor some don't. Some have both products, you pay for help with a full service broker so that help has to pay for itself and some do some don't.

[shtferbrains]

My financial advisor is very conservative.
Maybe he can see I don't have enough money to risk.
He has been very good at saving tax.

[STR1]

My advice is find a good financial advisor and work on a long term plan and stick with it.
Sounds like a good time to start a plan if you have extra cash around,

[sumdumguy]

BMO has an investment guy who you goto. He has a wide range of products. I just bought BMO Trust and BMO end of November. 5.08 and if I had waited a couple of days, probably could have got a bit more.

[poorboy]

Thanks everyone.

I bank at BMO and in my quick online look at their website only found 3.95% GIC's which I thought was way too low, but did not know what the going rate is. Have not stopped in at the bank yet as my deferred grain checks are here in January.

Not sure what time frame to pick as I might need this money in a year if there is a recession. This is my first real savings to park, so not ready to tie it all up in stocks and bonds and whatever else there is. Hopefully I get there, like lots of the financially well off members of this site.

It will be inside of a corporations, but no issues exceeding the passive interest rules for a while.

MCfarms, is the rbcdirect site that you used for the GIC rates a bank site or a brokerage site? Thanks for posting those.

Is that what they refer to as a personal redeemable?
Redeemable means 30 day min?
Does interest change if cashed early?

Or cashable?

Can anyone explain the difference?

no these ones are fully redeemable , but only after 30 days , 1 year term @4.95
you can withdraw a portion or all after the 30 days , up to the year term . interest is paid on the amount/day that was there @ 4.95
these are personal and incorporated , doesn't matter

[Richard5]

It is 90/10 rule. 90% of net worth must be farm related. So if cash is over 10% do something, but there is leeway, say just holding it to buy inputs after year end. I think this is how accountant explained it to me.

That is something different than the rule i brought up. What you are describing is the qualifications of farm rollover rules. If the shareholders pass away the farm company cannot pass on to kids tax free if over 10% non farming assets

You all farm but you have a weird way of looking at risk. You let $500K in inputs sit out in the weather for 6 months and dont think twice. Anyone that farms shouldnt be afraid of the stock market.

All your crops prices are less than what they were a year ago, do you cower in the corner when canola drops $5.

And real inflation is running at double digits, even a GIC is losing money.

Econ 101. Want a nice return for 2023, buy oil.

but , and correct me if I'm wrong , you did say oil would be $150-$200 by now ???

You all farm but you have a weird way of looking at risk. You let $500K in inputs sit out in the weather for 6 months and dont think twice. Anyone that farms shouldnt be afraid of the stock market.

All your crops prices are less than what they were a year ago, do you cower in the corner when canola drops $5.

And real inflation is running at double digits, even a GIC is losing money.

Econ 101. Want a nice return for 2023, buy oil.

i can control my farm , might even get my $20 for canola soon , lol

I dont like GICs because that ties my money up for a period of time and you never know in this business when you need it.

So I stay in stocks. BNS, ENB, BCE, TRP, CM all paying more that 6% dividends right now. And you can borrow against a stock portfolio if you need to.

But I think corporate bonds would pay more than a GIC these days.

these redeemable at 4.95 are completely redeemable after 30 days and any time after for the year . interest is paid up to date of withdrawal