Financial Channel

I have around $4500 dollars laying around in my good for nothing bank account. I won't be touching that money until late august the latest.

What should I do with this money that will help it grow but cashable at anytime for an emergency.

I was thinking redeemable GICs.

Poor choice. Some redeemable GICS will have penalties associated with them.
Your best bet is a high interest savings account. You can get about 4% which is probably higher than the GIC you were contemplating.

Good luck.

Thats only about 2 months. You might as well leave it in a savings account such as ING.

I believe most of the major banks require $5000 if you wanted a 3 month GIC.

Isn't that exactly what I wrote?

Your second statement is false. You can put $500 in a GIC if you prefer.[/quote]

That's what he wrote

That is NOT what he wrote. He implied that there is a minimum threshold of $5000 to invest in a 3 month GIC which is not true.

My post was only a few minutes off from yours... tabbed browsing.

It is incorrect? I recall looking at some of the major banks for a 3 month GIC and they all required $5000 minimum. Which bank offers $500 GIC for 3 months?

Thank you for the advice.

I'll look into high interest savings or might as well keep it in here.

Maybe not banks, but ING offers 3 month GICs for any amount

http://www.ingdirect.ca/en/acct_rate...rttermgic.html

Oops, I didn't notice that last digit. Sorry about that.

You are only looking at about $20 - 25 in interest for those couple of months. Would it really be worth the hasle?

I haven't looked at this before cuz i need the money to be liquid but a GIC compounded annually for example at 4.1% (ING) is about 3.92% compounded monthly. does anyone have a formula that equates one to the other?

Is 3.92% correct? I'm getting ~4.02%

x = compounded monthly's year rate (ear)
y = compounded yearly's year rate (ear)
(1+x/12)^12=1+y

thanks, 3.92 was just a guess, just going for something lower