Hey guys, Coach Julien here. In this video, I’m going to show you where to park your cash these days. You could probably get over four percent on your cash risk-free, not tied in. So let me show you where you can park your cash.
What to Watch Out For
The first thing you want to watch out for is there are all kinds of promotions out there. Here’s a blog from a site about the best high-interest savings accounts for 2023. When you look through that, the recommendations seem to have a really good interest rate on the account, but this is a promotional rate. So whenever you see a promotional rate and small print, that means there’s a catch. The catch here is if you read the small print, “new client offer and earn 5.25% for five months on your first Simply Financial High-Interest Savings Account, limits apply.” So this is only temporary. After that, I think it’s a 0.4% interest rate. So if that’s what it is after, who cares? Why would you want to open an account here just to generate 5.25% in five months? I’m going to show you accounts that’ll give you over four percent for as long as interest rates are at the levels they are today. They’re variable, obviously. They’re going to go up and down as the prime rate goes up and down. But right now, it’s over four percent.
High-Interest Rate Account #1
Here’s where I recommend you put your cash. We’ve got a few here, four or five. Here’s one called NBI Altamira. It’s an account you don’t need to be with National Bank to buy. It’s kind of like a fund. Let’s say you’re with Wealthsimple or you’re with RBC Direct Investing, and you want to buy some of this, you can. You just need the ticker, and the tickers are available here, by the way. I’ll provide links in the description of the video, so take a look at that after the video. Most of these have several varieties in Canadian dollars and US dollars. You have NBI 100 and then NBI 200 series A, series F. I don’t know what the difference is, but anyway, you can read up on it. Four point three percent, four point five five percent. Minimum investment. Most of these have minimum investments. Some are 500, some are 1,000, some have zero, whatever. You’ll see it’s written, and there’s a maximum amount. And there are different levels here, and then there’s a US cash performer account. They call it NBI CTS. NBI 101. That’s the ticker. So 4.65% and 4.9%. Really not bad, right? For all these accounts, you have similar benefits. They’re liquid. You can access the funds when you need them. Usually, it takes about 24 hours. It’s very quick. Zero fees, so there are no fees to buy and sell and to hold funds in these accounts. It’s secure. Deposits are covered. This is really interesting because deposits are covered by the Canada Deposit Insurance Corporation. They’re flexible. You can hold this in pretty much any account: RRSP, RESP, TFSA, whatever.
High-Interest Rate Account #2
The next one is Wealthsimple. The way they work is, depending on the amount of assets you have with Wealthsimple, less than a hundred thousand, you get one to three percent. Over a hundred thousand is four percent, and over 500,000 is 4.5 percent. And by the way, all these rates that I’m covering today, they’re variable. Meaning that this is based on today’s prime rate. Now, if the prime rate starts to go up, this will go up as well. If the prime rate starts going down, the interest on these accounts will go down as well. It’s variable. It’s important to note these are not like GICs. You’re not locked in, but they’re not fixed.
High-Interest Rate Account #3
Scotiabank, similar thing. They have Canadian dollar accounts and US dollar accounts. Zero to a hundred thousand, 4.64, 4.5 percent. If it’s over a hundred thousand US, it’s a little more.
High-Interest Rate Account #4
TD. So they have an A series and an F series. They have Canadian dollars and US dollars. There’s a rate sheet you can download, and I did it for you. So there you go, guys. The most important thing to remember is always make your money work for you. That means if you have cash, don’t leave it in an account earning 0.1 percent, right? You want to make that cash work for you. So I hope this video was useful for you. Give it a thumbs up if you liked it, and make sure to subscribe to my channel because I’ve got more content coming your way.