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Hello,
I was wondering if any of you have found higher interest rates for your equity investments.
I have
3% TFSA (People's Choice)
1.3% to 2.6% RRSP (Tangerine)
and 1.8% Savings. (People's Choice)
Any of you found higher paying banks? Any idea on where to invest to get 4-5%?
For 4-5%, you are going to have to take on some risk.
Bank of Nova Scotia stock is currently paying a 3.87% dividend, and Bell Canada 4.77%. But with that comes the risk of reduced dividends in future and/or the stock falling. Not saying that this is a reason not to buy in general, but you have to be sure that you are comfortable with this possibility before taking the plunge.
What you're posting for each bank in their high interest savings account (or TFSA) rates. These are basic interest paying accounts. The wording "equity investment" generally refers to buying stocks or shares - aka more risk for the higher return. That said, if you're "only" looking for 4-5%, grab a stable stock like brunt mentioned that pays a dividend and you should be fine.
Never really trusted banks to give a great rate of interest. Possibly look to invest in small business, or start a small business of your own.
I buy a few stocks and then mostly ETFs with questrade. There are risks and I did lose my entire $ 800 first stock purchase because the first company I picked with a fantastic dividend went bankrupt. I learned an important lesson and I believe I understand the markets a little better some 5 years into stock picking. Since you are asking online what to do with your money my first suggestion is park it in ING or any other bank that pays 1.0% or more and offers some sort of deal to open an account. 2.) Read 20 : 4-5 star books well reviewed on amazon about investing and make sure several are focused on Canadian investors. 3.) Then start small with north american market ETFs. If you do this in a year north american markets might not be the place to enter, it depends on the next year. However investing in the market is the only way you'll make the gains you want for the foreseeable future because the housing market will suffer enormously if they raise the interest rate too much. In my own opinion we are at a good period for investment in mutual funds and stocks in the North American market. Since you can't get a decent MER (mutual fund fee) in canadian mutual funds you have to take ETFs. If you can't bother chosing and managing your own portfolio I think the street wise fund with ING was the best thing going 3 years ago when I chose to manage my own portfolio. I heard vanguard was coming to Canada and their rates if at all similar to the rate in the US should be better.
One other piece of advice. If anyone tells you exactly where to put your money as in one stock, one mutual fund, one bank and you didn't pay that person a nice chunk of change up front: don't take that persons advice. There are lots of salesmen and conmen in the investment world. Stay away from them.
Low risk stocks paying good dividends is probably your best bet. Think big banks like TD, CIBC, etc. These are buy and hold stocks that pay dividends around 4%.
You might want to convert your high-interest savings account TFSA into a self-directed account through an online brokerage firm. Here's some info on risk assessment for that: http://tfsahelper.ca/investment-rela...tment-options/
I think you can continue to keep your portfolio very low risk by investing in big caps on the TSX which would earn you more than the couple percentage points that you're earning now.