Some of the best deals in investing and personal finance never get any hype or marketing, which means they’re quietly waiting for you to discover them. Here are five examples I have accumulated over the past year. Take a moment to see if any of them can help you in 2024:
4 per cent savings accounts
Three financial players offered 4 per cent interest on savings in early 2024 – the investment company Wealthsimple, and the alternative banks Neo and Wealth One Bank of Canada. A fourth alt bank, Motive Financial, offered 4.1 per cent. Motive and Wealth One are members of Canada Deposit Insurance Corp., while deposits with Wealthsimple are protected because they are held with a CDIC member. Neo’s account is provided by Peoples Bank of Canada, which is a CDIC member. Big bank savings accounts are typically below 2 per cent, while alternative banks are typically in the 2.5 to 3.8 per cent range.
A 4.55 to 5 per cent investment savings account
Investment savings accounts are just savings accounts for your investment account. They trade like mutual funds, which means they’re accessible through all online brokers. Most ISAs pay 4.55 per cent to 4.75 per cent, which is pretty good considering your money is covered by deposit insurance and thus virtually risk-free. One ISA that pays 5 per cent is the F-series version of the Scotiabank Investing Savings Account, with the order symbol DYN6004. It’s available to clients of Scotia iTrade.
No-cost ETF investing
Exchange-traded funds in their classic form are a cheap, well-diversified way to buy into the stock and bond markets. If you’re looking to move out of safe havens like guaranteed investment certificates in 2024, give ETFs a look. And, look for a digital broker that lets you at least buy ETFs at no cost. BMO InvestorLine, Qtrade Direct Investing and Scotia iTrade all have a limited menu of ETFs available commission-free. There’s enough at each broker to build a diversified portfolio. CI Direct Trading and Questrade allow clients to buy ETFs commission-free, but there’s a cost to sell. And, or course, National Bank Direct Brokerage and Desjardins Online Brokerage have no commissions of any kind for stocks and ETFs. One more option is the mobile all TD Easy Trade, which offers no-cost investing in TD’s family of ETFs.
Asset allocation ETFs
These ETFs are gaining traction quickly, but they should be more popular because of the low-cost simplicity they offer. Each is a fully diversified portfolio of bonds and stocks from Canada, the United States and the rest of the world. Just pick your risk level – conservative, balanced, growth or all-stocks. Costs are as low as 0.2 per cent, compared to around 1.5 to 2 per cent for balanced mutual funds.
Pre-paid bank cards
Load money on cards issued by EQ Bank, Koho, Wealthsimple and Wise and you can pay for purchases outside Canada without incurring the 2.5 foreign currency fee applied by most credit cards. These prepaid cards are connected to credit card networks, so they’re accepted wherever major cards are. These cards are unlike the first generation of prepaid products, which were loaded with fees and expiry dates.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
