Where to park money in Canada in interest bearing account?

[rodd]

Is this going to be savings in a personal name or in a corporation. If in a corporation be careful as i think there’s some kind of rule that once you earn more than 50,000 that you lose some of your business limit the following year.

If in personal name, interest is the highest tax of all investment options, consider a portion in in dividend paying stocks like Enbridge, Emera of Fortis. You don’t pay much tax on the eligible dividends they payout

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.

[shtferbrains]

4.95 one year redeemable, anytime after 30 days, full interest paid , 5.25, 5 year,

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?

[jazz]

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.

[SASKFARMER]

pay off debt if it’s high interest.

buy cheap assets.

why only one year?

[foragefarmer]

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.

He said he only wants to put it there for a year, the stocks you mention are the buy and hold type. They could easily drop in value in 2023, way to much of a risk over a time period of a year.

Your borrowing idea against your stock portfolio at todays rates with the chance your stock portfolio could go down in value within a year would be a double hit on your initial principle.

No wonder you lost money on condos and trading the US$ and CAN$.

Poorboy, mcfarms has provided you with some good advise.

One other thing to consider is you'll probably pay appox 40% income tax on the interest earned on a GIC if it's under a personal account.

[mcfarms]

[Unless he =jazz;556960]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.[/QUOTE]
He's looking for safety
One year ago bns was at 89.55 where's it at today? It's paying a 6 percent dividend but it's stock value is down 25 percent. Bank stocks have all been under pressure the last 6 months if he's doing anything in the markets with this volatility and being someone who hasn't traded this is probably either a real good time or a really, bad time to be trading for the first time. Maybe a percentage into a bank etf or a dividend etf. But it's not what he asked for he asked for safety and a 1 year term. That's a gic, corporate bonds are rarely a 1 year and what your are most likely doing there is buying the remaining term of a longer term one at a discounted par value. More liquid but probably not for a rookie. Even anything without some inflationary protective measures will leave you with less real purchasing power in a year with inflation running where it is especially .
Also if you are unincorporated and you do not have tfsa it may be a good time to utilize unused contribution room there and shelter the gain. But learn the rules of that program because people can get themselves offsides there as well.

Don't forget to keep a few Bordens under the mattress somewhere

[jazz]

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.

[mcfarms]

Is this going to be savings in a personal name or in a corporation. If in a corporation be careful as i think there’s some kind of rule that once you earn more than 50,000 that you lose some of your business limit the following year.

If in personal name, interest is the highest tax of all investment options, consider a portion in in dividend paying stocks like Enbridge, Emera of Fortis. You don’t pay much tax on the eligible dividends they payout

What you are referring to is the passive income rule where for every dollar of passive income ( investment land rent etc) over 50 k the small business deduction is reduced by 5 dollars.

[Richard5]

Is this going to be savings in a personal name or in a corporation. If in a corporation be careful as i think there’s some kind of rule that once you earn more than 50,000 that you lose some of your business limit the following year.

If in personal name, interest is the highest tax of all investment options, consider a portion in in dividend paying stocks like Enbridge, Emera of Fortis. You don’t pay much tax on the eligible dividends they payout