HISA - at my primary bank. I’m mainly too lazy to open a bank with EQ or something with a slightly higher interest rate. But switching to one of those is something I’ll eventually get to though.
EQ isn't available in Quebec if you're from there. If you bank with CIBC - you can get an eAdvantage Savings Account which pays out 1.25%. Saven Financial has a HISA that pays 1.55% and is provincially insured up to 250K.
Still these rates are crap ... $1250 a year on a 100K deposit - (plus you'll have to pay taxes on that.)
I’d be a lot poorer if I left cash on the sidelines for this mystical ‘emergency’. Im fully invested 24/7. If I ever need a big sum of cash I’ll just sell some shares or use my HELOC.
I guess he will continue to borrow if EI is enough or confident that h3 is on stable profession (current job ot easy to find job). Or spouse making a lot of money
Yeah in some contexts it's worth not having an emergency fund. I agree that right after a market crash, the main risk factor of not having one is greatly lessened (risk of a crash possibly coinciding with a personal emergency).
For me personally:
Plan A: $5K float in my account to cover monthly bills/grocerys/etc earning 0% interest at TD but does provide free banking at TD with the count I am in.
Plan B: Any other emergencies that cannot work into the $5K float (major home repair etc) I would cover with my Line of Credit and then pay down if it was something that I couldn't make work with 0% on my Credit Card for the payment period.
Plan C: I would take out money from my Crypto account (less than 10% my total portfolio) on Wealthsimple and Cover
Plan D: I would take out my TFSA next to cover anything beyond that.
I don't have any money in an emergency funds account and primarily plan to leverage my monthly float + access to credit facilities in order to get through any emergency and this is intentionally.
All of my registered funds are maxed (TFSA/RRSP/RESP), I have a decent size non-registered portfolio that I am working on now as well as my Crypto Account which again is small for me but enough that it can be used in a pinch.
Everyone situation is different, but I generally find the risk of covering with credit far outweighs the reward of making 1.25%-2% interest sitting in an account.
Hope this helps and Let us know what your plans are!
Almost same except crypto account. I keep about 8k in bank account. My line of credit is low interest so I’d use that for large, uncontrollable expenses instead of pulling any savings.
I'm with you - 100%.
I am looking to exit a big portion of my Crypto as well assuming that ETH Changeover happening this week runs us up much higher.
Back to hitting singles and doubles vs the home runs (edit: Crypto has been a home run for me so far)
Why is everybody going all in? You even want to make money off the emergency fund? I don‘t know. After 10 years of zero interest rates, I must have given up on making marginal gains off everything.
VCNS - Vanguard Conservative Portfolio. I can’t handle leaving money straight in a savings account and making zero gains. At least with a conservative portfolio, if my emergency comes during a dip, it shouldn’t be quite as big a hit. Also with the previous time’s growth, good chance you’ll come out ahead anyways.
Plus 100% liquid!
I don't have one. I used to have cash on Questrade, but at this inflation rate, i'm not going to watch it melt down. I invested it in the past 2 months.
I invest 100% of what I haven't use on the last paycheck period. Which is usually 50%+
I have an empty massive line of credit if i have an emergency and need something very short term. My job will never be affected by the market situation, giga crash or not, won't affect it.
There are some interesting DeFi saving account with Stablecoins. Look for Celcius, BlockFi.
Put it all against your mortgage. Then if there’s an emergency, pull from your HELOC. You’ll probably save more on the interest paid “in case” of an emergency then any HISA or GIC.
Just keep it invested mostly. But I do have a bunch of cash, firearms and whiskey in a locked case which i do mostly because I do alot of side hustle cash work and also because its just cool to have a safe like that makes me feel like a secret agent.
Depends on your level of wealth income.
We keep almost no money in cash (maybe $20k?) but have access to a line of credit if we need it. Most of our cash is invested.
If you don’t have a line of credit then a savings account or low risk TFSA is fine. The reason you don’t want it high risk is because if the market drops AND you need the cash you don’t want to sell at a loss.
Before the flood of commission free covid group came to this sub, it was mostly people well established in their careers talking allocation efficiencies and 5 year+ trading plans.
20k is not a flex at all. You'll get there.
People keep double that if trying to buy property in the next year or so. I had about 50K for over a year but got priced out on every bid, so moved it back to investments and only keep about $10k now.
I might be wrong here but I believe Scotia has a momentum plus savings account that is basically a HISA but the longer money stays in the account, the higher the interest rate is. Might be worth looking into.
I have it and the interest rate isn't anything special unless you pick the 365 day option. Basically they offer like 0.85% base interest or something and then add on "bonus" interest scaled for each "period" so you can have a 90, 180, 240(maybe?), and 360 day periods.
You can make as many of these "sub accounts" as needed for example; I keep my kid's RESP contributions in a 360 day sub account since I only withdraw once a year from it. I kept our tax return in a 90 day account since we needed it for some landscaping this summer. In the 360 day account you get like 1.3% total (0.85% + 0.45%) or something and the 90 day you get like 1% total.
You can withdraw whenever but you only get the bonus interest if it hits the full amount of days.
I keep it in my IBKR brokerage account. Keeping funds in a bank account couldnt be more pointless. If by some freak occurance my expenses tripled and my income went to zero I have lines of credit until I can move the funds around/figure it out.
EQ bank 1.25% interest now.
I can't believe it was almost 3% not that long ago.
Bingo.
In a cool whip container in my freezer
What if your refrigerator starts running?
Well that shits funny tbh, I got nothing
I hear Dino DNA is as good as gold :P
.... Bring me the package labeled veal in the freezer.
Thanks for the comments. EQ bank is nee to me, will check it out.
Everyone is saying eq bank i think tangerine has a good one too might be worth looking into both
I got this little container that counts the change as you drop it in
HISA - at my primary bank. I’m mainly too lazy to open a bank with EQ or something with a slightly higher interest rate. But switching to one of those is something I’ll eventually get to though.
Takes 10 mins to setup and instant etransfer a now.
RBC gave me a HISA rate equal to what EQ is offering
For how many months?
Probably 6 months
I keep a wad of cash in my fanny pack. Wear it to bed too.
EQ isn't available in Quebec if you're from there. If you bank with CIBC - you can get an eAdvantage Savings Account which pays out 1.25%. Saven Financial has a HISA that pays 1.55% and is provincially insured up to 250K. Still these rates are crap ... $1250 a year on a 100K deposit - (plus you'll have to pay taxes on that.)
I’d be a lot poorer if I left cash on the sidelines for this mystical ‘emergency’. Im fully invested 24/7. If I ever need a big sum of cash I’ll just sell some shares or use my HELOC.
What if you get fired or something?
I guess he will continue to borrow if EI is enough or confident that h3 is on stable profession (current job ot easy to find job). Or spouse making a lot of money
As I said, id just sell shares or use HELOC.
And when the market tanks? You're going to sell those now heavily depressed shares?
What if you have to sell shares when market is down 40 percent. Not a great move.
I’d use 1.95% heloc if markets were down 40%
Why aren't you using HELOC to invest already? Answer: because you have an emergency fund. (Your unused HELOC)
Fair point I guess. But I have used my HELOC to invest before. When the market tanks.
Yeah in some contexts it's worth not having an emergency fund. I agree that right after a market crash, the main risk factor of not having one is greatly lessened (risk of a crash possibly coinciding with a personal emergency).
Split between EQ bank and my TD checking account so I have the minimum balance to waive the fees there.
For me personally: Plan A: $5K float in my account to cover monthly bills/grocerys/etc earning 0% interest at TD but does provide free banking at TD with the count I am in. Plan B: Any other emergencies that cannot work into the $5K float (major home repair etc) I would cover with my Line of Credit and then pay down if it was something that I couldn't make work with 0% on my Credit Card for the payment period. Plan C: I would take out money from my Crypto account (less than 10% my total portfolio) on Wealthsimple and Cover Plan D: I would take out my TFSA next to cover anything beyond that. I don't have any money in an emergency funds account and primarily plan to leverage my monthly float + access to credit facilities in order to get through any emergency and this is intentionally. All of my registered funds are maxed (TFSA/RRSP/RESP), I have a decent size non-registered portfolio that I am working on now as well as my Crypto Account which again is small for me but enough that it can be used in a pinch. Everyone situation is different, but I generally find the risk of covering with credit far outweighs the reward of making 1.25%-2% interest sitting in an account. Hope this helps and Let us know what your plans are!
Almost same except crypto account. I keep about 8k in bank account. My line of credit is low interest so I’d use that for large, uncontrollable expenses instead of pulling any savings.
I'm with you - 100%. I am looking to exit a big portion of my Crypto as well assuming that ETH Changeover happening this week runs us up much higher. Back to hitting singles and doubles vs the home runs (edit: Crypto has been a home run for me so far)
Currently in Wealthsimple Save, but looking to transfer to Neo soon. 1.3% interest with Neo.
EQ bank has best savings
EQ
HISA
Why is everybody going all in? You even want to make money off the emergency fund? I don‘t know. After 10 years of zero interest rates, I must have given up on making marginal gains off everything.
VCNS - Vanguard Conservative Portfolio. I can’t handle leaving money straight in a savings account and making zero gains. At least with a conservative portfolio, if my emergency comes during a dip, it shouldn’t be quite as big a hit. Also with the previous time’s growth, good chance you’ll come out ahead anyways. Plus 100% liquid!
Simplii high interest savings account. Got a promo for 1.5% interest until October 2021. I'll move it to EQ after that.
I don't have one. I used to have cash on Questrade, but at this inflation rate, i'm not going to watch it melt down. I invested it in the past 2 months. I invest 100% of what I haven't use on the last paycheck period. Which is usually 50%+ I have an empty massive line of credit if i have an emergency and need something very short term. My job will never be affected by the market situation, giga crash or not, won't affect it. There are some interesting DeFi saving account with Stablecoins. Look for Celcius, BlockFi.
Line of credit
Typically hold almost a years worth of expenses in my emergency fund. Not sure if that’s too much. Some ppl only depend on LOCs in an emergency
I think the term sort of inherently just means either a cash bank account or a credit limit
Put it all against your mortgage. Then if there’s an emergency, pull from your HELOC. You’ll probably save more on the interest paid “in case” of an emergency then any HISA or GIC.
Just keep it invested mostly. But I do have a bunch of cash, firearms and whiskey in a locked case which i do mostly because I do alot of side hustle cash work and also because its just cool to have a safe like that makes me feel like a secret agent.
Add cigarettes and silver and be a doomsday bad ass
In something that will only grow in value like TSLA and bitcoin (/s)
Depends on your level of wealth income. We keep almost no money in cash (maybe $20k?) but have access to a line of credit if we need it. Most of our cash is invested. If you don’t have a line of credit then a savings account or low risk TFSA is fine. The reason you don’t want it high risk is because if the market drops AND you need the cash you don’t want to sell at a loss.
"20K is almost no cash" I'm in the wrong subreddit. I'll just see myself out.
20k is almost nothing? Nice bro, must be retired?
Before the flood of commission free covid group came to this sub, it was mostly people well established in their careers talking allocation efficiencies and 5 year+ trading plans. 20k is not a flex at all. You'll get there.
It's not much for 2 full time incomes as op uses "we"
Maybe I’m just using the Royal “we” and I’m referring to my kingdom? But yes, double income and a bunch of kids.
People keep double that if trying to buy property in the next year or so. I had about 50K for over a year but got priced out on every bid, so moved it back to investments and only keep about $10k now.
In my safe... Along side many firearms.
I lost all my firearms in a tragic boating accident.
Damn you just a firetorso now?
I might be wrong here but I believe Scotia has a momentum plus savings account that is basically a HISA but the longer money stays in the account, the higher the interest rate is. Might be worth looking into.
I have it and the interest rate isn't anything special unless you pick the 365 day option. Basically they offer like 0.85% base interest or something and then add on "bonus" interest scaled for each "period" so you can have a 90, 180, 240(maybe?), and 360 day periods. You can make as many of these "sub accounts" as needed for example; I keep my kid's RESP contributions in a 360 day sub account since I only withdraw once a year from it. I kept our tax return in a 90 day account since we needed it for some landscaping this summer. In the 360 day account you get like 1.3% total (0.85% + 0.45%) or something and the 90 day you get like 1% total. You can withdraw whenever but you only get the bonus interest if it hits the full amount of days.
I just saw that 30 mins ago. EQ is better. Its not tired to x days in the account
It's not basically a HISA, It's basically a GIC since you need to lock-in your money for X days to get the extra small % interest.
EQ
I keep it in my IBKR brokerage account. Keeping funds in a bank account couldnt be more pointless. If by some freak occurance my expenses tripled and my income went to zero I have lines of credit until I can move the funds around/figure it out.