Best savings account?

[wolverine]

One problem with savings accounts is they don't keep up with the inflation rate, and the tax on the resultant yields. So you end up losing money, or worse, pay the bank for parking your money there.

That's why I've decided to start squirrelling a percentage of each paycheque to my newly-opened ING savings account - at least they're not going to rape me with fees and service charges. I considered opening either a savings account or a GIC with my current bank just for the sake of transferrable convenience, but all I saw were more fees and service charges, and sweet fuck-all on returns. I will still keep the current bank account for my day-to-day stuff. But the ING savings account will eventually be used for a new car or vacation down the road, to cover future renovations for my place, or for an emergency stash to cover any unexpected debts that may arise.

Another problem is the amount wolverine wants to place is not going to raise eyebrows in the investment community, so he's caught between a rock and a hard place. If he's willing to put in some time researching the markets, he may find something that can help him achieve his goal. If he wants short term, high yields/losses, he might consider a "highly" risky placement in a mining stock, or like some have suggested, an energy stock, but I don't sense a mad streak in him, and with the small amount he has coming, he might just as well put it in a flex-rate GIC available at most banks or credit unions.

I'm not really very knowledgeable about the stock market. Hell, I still don't know the diff between a bull and a bear. And as I've said, I'm already socking enough coin away into RSPs and mutual funds - that's good enough for me. And I am indeed going to put my tax refund into a GIC. The return I'm getting is enough to meet the minimum investment at most financial institutions. But the ING GICs have no minimum, and their rates kick ass over many of the other GICs I've seen.

So to summarize:
% of each paycheque --> ING savings account
tax refund ---> ING GIC

 

[Smother]

Wolverine.....if you want to able to get to your cash easily...then everyone's suggestions on here are pretty accurate...financial investing is my hobby...has been for years.....these simple saving's vehicles ...don't pay much at all.....what you have to realize also is this....very important....inflation will eat into your savings....which isn't much....and also even the slightest capital gain...you'll end up paying tax on that too...you can actually lose money...depending on what your in....so be careful....
cheers..

 

[wolverine]

If your risk tolerance is low, these are ok, but I would recommend that you look long term and invest in something with more variability. A good rule of thumb is that at a minimum the debt portion of your portfolio should = your age, so if you are 34, you should have 34% of your investments in debt (GIC, mortgage funds, bonds, CSB, savings accounts etc) the remaining (100-34 = 66%) should go into equity based investments. That way as you get older, and your portfolio can naturally sustain less volitility the equity portion will decrease.

I believe I'm about there already. I own property whose value has doubled in the last few years, and as I've said repeatedly, I am already squirrelling a good chunk into RSPs and mutual funds for the long haul. The money that's going into the ING savings and GICs will be used for the near future (1-3 years) until I decide what to do with it, which may include a longer-term investment elsewhere. It's not a question of risk - I just don't believe in locking away every spare cent that I have until I'm too old to do nothing but drink shitty coffee in McD's all day. I still need to eat, drink, travel and poon, ya know!

 

[Smother]

wolverine.....you say 1 - 3 years....as i suggesed.....cibc monthly income fund.
check it out.....listen to me... you'll like it....and you can pull it out anytimeas long as it's outside an RRSP.....just take a look at it....let me know..

take care..

 

[Jodie]

but seriously... wolverine ...I've had this fund for 1.5 years now...33% return so far...
Take a look at CIBC monthly income fund......it's a good one....medium risk...and reinvests the monthly payouts....
Check it out...I think you'll like it...as long as you have at least a 2 year horizon..... let me know what you think..

Cheers.

According to Globefund.com, you'd have realized basically the same returns having invested in the corresponding indexes.

Returns as of January 31, 2006
Fund GroupAvg Index*
1 month 2.21% 1.87% 3.22%
3 month 8.94% 6.54% 9.18%
6 month 9.65% 4.83% 8.94%
1 year 20.32% 11.33% 19.41%
3 year 16.06% 11.95% 15.84%
5 year 12.30% 6.26% 7.03%
10 year n/a 7.91% 9.43%
15 year n/a 8.42% 10.35%
20 year n/a 7.76% 9.83%
Since Inception 11.47% n/a n/a
3 year risk 5.32 5.52 5.71
3 year beta 0.80 0.79 1.00
* Index refers to Blend: 60% S&P/TSX, 40% Scotia Universe

I always try to invest in funds that outperform both their competition and the corresponding indexes. These are usually fairly high risk, but then again, I do have age on my side, so that works for me

The golden child in my portfolio as been the "Front Street Special Opportunities Canadian" fund, which I purchased just over a year ago. This particular fund has had a phenomenal and consistent track record over the last 15 years. Check out these returns!

Returns as of January 31, 2006
Fund Group Avg Index*
1 month 12.42% 1.82% 6.06%
3 month 26.13% 5.05% 15.63%
6 month 39.95% 4.72% 15.65%
1 year 63.86% 8.66% 32.18%
3 year 59.98% 13.45% 24.30%
5 year 38.01% 3.77% 6.97%
10 year 24.45% 5.14% 11.03%
15 year 19.09% 10.33% 11.32%
20 year n/a 4.64% 10.05%
Since Inception 17.92% n/a n/a
3 year risk 27.39 9.26 9.88
3 year beta 1.70 0.52 1.00
* Index refers to S&P/TSX Total Return


(In case anyone is confused by the above charts, the numbers - read horizontally - refer to the investment timeframe, the returns generated by the fund, the average returns generated by similar funds, and the returns of the corresponding indexes)