Investment Q&A

Q: 5i,

To help Terence with his cash at RBC Action Direct, I use their fund code RBF2010 which is a savings account currently paying 4.30%. It is very easy to move funds back and forth with no fees.

Q: I have been checking out investment savings accounts as an alternative to money market funds as a place to hold cash for future investment. RBC has a number of these RBF 2010, 2020, 2030 and 2040, but when I pull up a quote on the RBC Direct Investing site none of these funds are showing any assets. I doubt that I would be the first person to buy some. Do you know what is going on here?

Q: Hello 5i Team

Further to questions on parking cash, all the discount brokerages offer "High Interest Savings Account" mutual funds which are CDIC insured deposit accounts for the various subsidiaries of the bank.
Each of these is insured to $100k under CDIC, therefore you are able to segregate $400k under CDIC insurance in one brokerage account.
I am most familiar with RBC Direct Investing and TD Direct Investing, each offer 4 separate subsidiary companies with CDIC coverage. Other discount brokerages may only offer 1 option. A list is available on-line at:
https://www.finiki.org/wiki/High-interest_savings_account
The benefit of using these in your brokerage account are having cash available for other security purchases and the value is included for calculating available margin (loan value). The interest is paid monthly and can be reinvested automatically.
Thanks

Q: I am sitting on some cash in RBC held RRSPs and TFSAs. Would the RBC2010 account be a good way to squeak out a tiny return while still having lots of liquidity in case I want to buy a stock or ETF in a fairly short time frame, say 24 hours?