Cash.to at 3.72% … worth it or no?

I saw the distribution yield for cash.to is now at 3.72% (before taking out the 0.11 MER). If you’re getting 3.75% with Wealthsimple, is there any reason to stick with cash.to? Maybe only if you’re holding it in a tax-sheltered account?

The MER is already included in the payout.

Wealthsimple Savings can’t go in a TFSA, so that’s one plus for CASH.TO

Vance said:
Wealthsimple Savings can’t go in a TFSA, so that’s one plus for CASH.TO

Isn’t CBIL paying more than CASH? (I know some people like the name CASH better)

Ellis said:

Vance said:
Wealthsimple Savings can’t go in a TFSA, so that’s one plus for CASH.TO

Isn’t CBIL paying more than CASH? (I know some people like the name CASH better)

CBIL is 3.60% and CASH is 3.72% as of Oct. 31st according to Global X (formerly Horizon).

Vance said:
Wealthsimple Savings can’t go in a TFSA, so that’s one plus for CASH.TO

You can ask support to set up HISP in a TFSA though.

Alix said:

Vance said:
Wealthsimple Savings can’t go in a TFSA, so that’s one plus for CASH.TO

You can ask support to set up HISP in a TFSA though.

Feels like too much effort for a small rate difference. Buying cash.to seems easier.

@Zen
Agreed

All that for a 0.03% difference? Doesn’t feel worth it.

Alix said:

Vance said:
Wealthsimple Savings can’t go in a TFSA, so that’s one plus for CASH.TO

You can ask support to set up HISP in a TFSA though.

Are you sure? Is there any official info on that? Seems odd they wouldn’t make it a standard option.

Since rates have dropped, the gap between cash.to and Wealthsimple cash doesn’t seem huge. I’m keeping my money in cash.to until I need it for a down payment.

Kai said:
Since rates have dropped, the gap between cash.to and Wealthsimple cash doesn’t seem huge. I’m keeping my money in cash.to until I need it for a down payment.

This is like when people stress over a 10-point difference in their credit score … it doesn’t matter that much. If you buy an appetizer at a restaurant, that’s already more than any difference here.

@Amari
Got it. Just water and the cheapest meal, no extras.

Remy said:
@Amari
Got it. Just water and the cheapest meal, no extras.

Look at you … spending on restaurant food! All I buy is rice and lentils.

@Amari
Gas prices go up by 5 cents a liter … better wait in line to save a few cents.

@Amari
$1100 per year on a million. Not many have that much in cash.to. If you did, you’d likely use GICs for better rates. Plus, this only matters in tax-free accounts, and not many people have a million in a TFSA with no riskier assets. In a regular account, the $1100 gets cut by taxes, so maybe closer to $700 a year.

Kai said:
Since rates have dropped, the gap between cash.to and Wealthsimple cash doesn’t seem huge. I’m keeping my money in cash.to until I need it for a down payment.

Can’t believe how much time some folks spend on this decision. Pick what’s easiest and go do something you enjoy.

@Zen
Spending time thinking about a $20 difference on $100k is a mindset I’ll never understand.

Riley said:
@Zen
Spending time thinking about a $20 difference on $100k is a mindset I’ll never understand.

I appreciate this thread though. I set cash.to aside a while back and forgot to check the rate, so this reminded me.

Riley said:
@Zen
Spending time thinking about a $20 difference on $100k is a mindset I’ll never understand.

I have a friend like that … I just think it’s his accountant side coming out.

Riley said:
@Zen
Spending time thinking about a $20 difference on $100k is a mindset I’ll never understand.

In a non-registered account, you’ll actually take home less since it’s taxed as income.