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What Can I Do with the Cash in the US Dollar Side of my Portfolio at BMO InvestorLine?

Posted on 2017 09 30 by BetCrooks

Sometimes you don’t see anything you want to invest in for the US dollar side of your portfolio. Meanwhile, dividends and distributions keep rolling in and you start accumulating a stash of US cash. That’s been happening this year for me in my RRSP so I thought I’d better look at getting the best possible return for my US dollars while waiting to make an investment decision. Here’s how I parked my US dollar cash in a high interest savings account mutual fund at BMO InvestorLine.

What Fixed Income Investments Could I Park My US Dollars In at BMO InvestorLine?

There are two basic fixed investments commonly used for parking cash for the short term in a BMO InvestorLine account: cashable GICs and high interest ( ! their name not mine!) savings accounts.

High Interest Savings Accounts at BMO InvestorLine

BMO InvestorLine only offers two pseudo-high interest savings accounts, one in US dollars and one in Canadian dollars. They are actually run like mutual funds but with no fee to buy or sell units and no required minimum holding time.

The US dollar fund is called AAT780. You have to buy at least $1000 USD units of the fund initially. For subsequent purchases, you can invest in $50 USD increments.

Cashable GICs at BMO InvestorLine

At the time I wrote this, September 26 2017, InvestorLine was not offering any cashable GICs in USD online. I suspect if you had a very large amount of cash and phoned in, though, you could probably arrange something. Given the current low rates for cashable GICs, though, it may be just as beneficial to put the money in a HISA.

Be Aware: US Dollar Savings are NOT Insured by CDIC!

Just as a public service, I’d like to remind readers that CDIC does not insure deposits held in foreign currencies, which includes US dollars. If something goes terribly, terribly wrong with the financial institution holding your US dollar assets, you may lose the money. Check before investing whether any other kind of assurance or insurance is provided for your savings.

What Are AAT770 and AAT780 Paying for CAD and USD Deposits at BMO InvestorLine?

Today, October 3 2017,

  • AAT780 the USD high interest savings account is paying an annual rate of 0.50%.
  • AAT770 the CAD high interest savings account is paying an annual rate of 0.95%.

That’s the influence of the recent increases in the federal prime rate.

Related Reading

  • How to Buy Units in AAT770 in a BMO InvestorLine Account

Join In
Do you have any cash parked waiting for an opportunity? Please share your strategy with a comment.

Posted in InvestorLine, Self Directed Investing | Tagged AAT770, AAT780, BMO InvestorLine, cash, fixed, high interest savings account, HISA, US dollar

How to Link Your Tangerine or Other Bank Account to Your EQ Bank Account

Posted on 2016 12 05 by BetCrooks

When last we spoke, I explained how I had linked my EQ Bank Account to my Tangerine account so I could push money out from EQ to land in Tangerine and avoid a hold being put on my cash. This time, I’m setting up a link from Tangerine to EQ to push money the other way, but you can also use the information here to set up a link from any other bank account to your EQ account.

How Many External Bank Accounts Can I Link to from my Tangerine Account?

EQ Bank lets you set up 10 links to external (non-EQ) bank accounts. Tangerine is more restrictive. It only lets you set up links to 3 accounts.
On the other hand, Tangerine lets you click and cancel a link so that you can set up a new one. EQ Bank makes you phone in to cancel a link.

Use Caution When Cancelling a Tangerine Link to a Non-Tangerine Bank Account

Remember, if you do cancel a Tangerine-to-other-bank link it will take several days to set it up again! You’ll have to wait for the 2 deposits of very small amounts of money to be made and to be reported for verification before the account is re-linked. Think before you delete!

Information You’ll Need To Link the Accounts

Before you start trying to link your accounts, you will need to know

  • the institution number, 623
  • the transit number, 80002, and
  • the account number (yours not mine!)

for your EQ Bank account.

Linking Tangerine Accounts to EQ Bank Accounts

Remember, you have to be a named owner of both bank accounts for them to be linked successfully.

  1. Sign in to your Tangerine account/s.
  2. From the list on the left side of the screen, click on: My info and options.
  3. From the drop-down list, select: Links to external accounts.
  4. Click on the Add account button.

Links to External Accounts Page

Read the instructions, then click on the Get Started button.

Provide your account information Page

Type the information in the following text boxes

  • Transit number
  • Bank number
  • Account number

Make sure the correct currency type is selected, for example for EQ Bank, select CAD.

Click to check the box beside “I confirm that the account information provided is for my personal deposit account.

Click on the Submit button.

Please confirm your bank details Page

  1. If the details for the account are correct, click on the Yes button.
  2. You’ll receive a message about the two very small cash deposits Tangerine will make into your EQ Bank account.
  3. Sign out of your Tangerine account.

Once those deposits are made, you can Confirm the link. For now, though, you’ll have to wait.

Related Reading

  • How to Confirm the Link and Transfer Money Between Your Tangerine Account and Your Other Bank Account
  • How to Open a Tangerine Chequing Account If You Don’t Have Any Bank Accounts Anywhere
  • How to Open an Account at EQ Bank

Join In
Have you now linked your EQ Bank account with Tangerine or another bank? Please share your experience with a comment.

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Posted in Finances, Money Tips | Tagged business savings account, connect, daily interest savings accounts, EQ Bank, high interest savings account, join, link, RRSP transfers, Tangerine

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