If you run a self-directed investment account, someday you will face the problem of what to do with the cash in your account. Cash can accumulate for any number of reasons in a self-directed account but what to do with that money is always the same: stash it where it continues to work while, at the same time, being readily available for investing. My favourite spot for parking cash is TDB8150, an investment savings account mutual fund. (I once thought of it as a money market fund but I was wrong.)
TDB8150 is an investment savings account mutual fund with absolutely zero fees. It currently is pays 2.30% with no MER. It has a fixed unit price of $10 but the initial investment must be $100 or more. There are no buying and selling fees. And it is CDIC insured up to total investment of $100,000 per account. Deposits to TDB8150 are limited to $5 million (Canadian).
TDB8150 has its interest calculated daily and credited to your account once a month. If you sell units in mid-month you will still receive the interest accrued up to the sale date. This interest will be paid on your next interest distribution date.
If anyone has a better suggestion, I would like to hear it. I also did a post: Cash: good stuff to have around. This present post is an update to that original post.
No comments:
Post a Comment