spatch

Any ideas on investment rates?

We are thinking of investing some of our equity from our house sale in England and wondered if anyone knew of the interest rates at all in Canada?

Or would we be penalized on tax or any benefits if we had savings?

Any advice would be greatly appreciated.

Thanks.

iaink

Generally bank interest rates suck bigtime. Barely in line with inflation, and below after you are taxed on the interest earned. Any of the bank websites (RBC, CIBC, BoM etc) show rates on GICs or saving accounts. 1-3% is about typical!!!!! Mutual funds offer better returns, but you are at the mercy of the market and could lose a lot of money too.

Interest earned is taxed, except in sheltered retirement funds (RRSPs....need to be a PR to open one, work permit not enough),

I cant remember which benefits are means tested for savings.

If you are talking a lot of money maybe investing in a property for rental income is an option, or given UK property market, just buy a house in the UK and watch its value grow!

Iain

CDNReturner

I'm currently trying to investigate this myself. I'm lucky that I can just about live on my investments over here and am not sure I can do the same in Canada. My sister has given me her investment advisors name (this person also manages my mothers money as she is in a nursing home in Canada) but so far our e-mails to each other aren't meeting up. I may phone him later today or Monday.

Meanwhile, my investigations show ING Direct in Canada pay 2.5% while over here ING Direct pay 4.5%. Secondly I was horrified to find out 2 weeks ago that interest earned at the lower band of taxation is 22% not 20% like here. It seems invested income as opposed to interest is taxed much lower. This is why I'm trying to get hold of this investment advisor to clarify this for me. Once I get out there (mid-July hopefully) I too may consider buying two properties (one for investment) or I may consider buying a duplex/triplex where you can rent out one side of the property.

Anyway, when I find out a bit more I will try and let you know.

CDNReturner

Sorry, I should have also mentioned that when my sister invested my mother's money approx this time last year it was invested based on a return of 5%. In actual affect 7% was achieved.