Money Market investments are ways for governments and corporations to raise capital. These short-term investments (up to 12 months) have a fixed rate of return held to maturity. That means you’ll know how much your investment will yield at the end of your term. Plus, your funds remain liquid so you have easy access to your money. Money market investments are sold at a "discount" to the “par" (maturity) value. The difference between the discounted price and the par value amount is the interest received on the investment.
What are the benefits of TD Money Market investments?
Competitive rates
Get fixed rates of return that may be higher than traditional savings accounts.
Short terms
Terms of Money Market investments are up to 12 months.
Liquidity
Maintain easy access to your money during the term of your investment.
Take a look at the Money Market options available to you
Explore your TD Money Market investment options today
Visit any TD Canada Trust Branch
Call 1-866-222-3456 to discuss your options
TD helps you reach your savings goals
At TD you have a wide range of Money Market investments that can help you reach your short-term savings goals. With predictable returns, you can save toward a car or a down payment for your new home while your funds remain liquid.
What types of TD Money Market investments are available?
Government of Canada Treasury Bills (T-Bills)
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Government of Canada Treasury Bills offer a client security as they are fully guaranteed by the federal government. Principal and interest is a direct obligation of the Government of Canada, no matter how much you invest. Government of Canada T-Bills are available in US dollars as well as Canadian dollars, and both are considered Canadian content within your RSP/RRIF.
Highlights:
- Safest Canadian investments available in Canada, regardless of the size of the investment
- Fully guaranteed principal and return if held to maturity
- High degree of liquidity
- Can be sold at market value at any time
- Low minimum investment required
- RSP/RIF eligible
- US dollar-denominated investments are considered Canadian content for RSP purposes
Dollars to Invest/Time Horizon:
- Minimum investment (at face value) is $5,000 for one month to one year
- Available in Canadian and US dollars
Risk/Return:
- Every aspect of the investment is guaranteed by the Government of Canada, regardless of the size of the investment.
Liquidity:
- Highly liquid; may be sold at any time, with settlement within one business day
Income:
- Earnings are distributed at maturity
Explore your TD Money Market investment options today
Visit any TD Canada Trust Branch
Call 1-866-222-3456 to discuss your options
Government Guaranteed Commercial Paper
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Government Guaranteed Commercial Paper investments are short-term promissory notes issued by Crown Corporations (e.g. the Canadian Wheat Board, The Federal Business Development Bank) and fully guaranteed by the Government of Canada, no matter how much you invest. They offer the same high quality as Government of Canada T-Bills, but pay a slightly higher rate of return. Many Crown Corporations issue commercial paper denominated in US as well as Canadian dollars, and both are considered Canadian content within your RSP/RRIF.
Highlights::
- Highest guarantee of principal available of any investment sold in Canada, regardless of the size of the investment
- Fully guaranteed principal and return if held to maturity
- Higher yielding than Government of Canada T-Bills
- High degree of liquidity
- Can be sold at market value at any time
- RSP/RIF eligible
Dollars to Invest/Time Horizon:
- Minimum investment (at face value) is $100,000
- Terms vary from one month to one year
Risk/Return:
- A direct obligation of the issuing Canadian Crown Corporation and fully guaranteed by the Government of Canada
- Every aspect of the investment is guaranteed, regardless of the size of the investment
- Slightly higher yields than Government of Canada T-Bills
Liquidity:
- Highly liquid; may be sold at any time, with settlement within one business day
Income:
- Earnings are distributed at maturity
Explore your TD Money Market investment options today
Visit any TD Canada Trust Branch
Call 1-866-222-3456 to discuss your options
Provincial Treasury Bills and Promissory Notes
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Provincial Treasury Bills and Promissory Notes offer attractive interest rates and are fully guaranteed by the issuing province. They may offer higher yields than Government of Canada T-Bills. Plus, every penny of principal and interest is a direct obligation of the issuing province, no matter how much you invest. Even if you normally hold your investments to maturity, it is nice to know that T-Bills are fully marketable and can be sold at market value at any time.
Highlights:
- Unlimited issuer guarantee, regardless of the size of the investment
- Fully guaranteed principal and return if held to maturity
- Usually higher yielding than Government of Canada money market investments
- High degree of liquidity
- Can be sold at market value at any time
- RSP/RIF eligible
Dollars to Invest/Time Horizon:
- Minimum investment (at face value) is $5,000
- Terms vary from one month to one year
Risk/Return:
- Fully guaranteed by the issuing province.
- Every aspect of the investment is guaranteed if held to maturity, regardless of the size of the investment
- Higher yields than similar Government of Canada investments
Liquidity:
- Highly liquid; may be sold at any time, with settlement within one business day
Income:
- Earnings are distributed at maturity
Explore your TD Money Market investment options today
Visit any TD Canada Trust Branch
Call 1-866-222-3456 to discuss your options
Bankers' Acceptances (BAs)
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Bankers' Acceptances are short-term promissory notes issued by corporations with the unconditional guarantee of a major Canadian chartered bank, for any investment amount. When issued directly by a financial institution such as a chartered bank, they are known as Bearer Deposit Notes (BDNs). They have the same high quality as the guaranteeing bank and usually offer a higher return than Government of Canada T-Bills.
Highlights:
- Unlimited issuer guarantee, regardless of the size of the investment
- Fully guaranteed principal and return if held to maturity
- Usually higher yielding than government-issued Money Market securities
- High degree of liquidity
- Can be sold at market value at any time
- RSP/RIF eligible
Dollars to Invest/Time Horizon:
- Minimum investment (at face value) is $5,000
- Terms vary from one month to one year
Risk/Return:
- A direct obligation of the issuing corporation and fully guaranteed by the sponsoring Canadian Bank
- Higher yields than government-issued Money Market securities of similar term
Liquidity:
- Highly liquid; may be sold at any time, with settlement within one business day
Income:
- Earnings are distributed at maturity
Explore your TD Money Market investment options today
Visit any TD Canada Trust Branch
Call 1-866-222-3456 to discuss your options
Commercial Paper
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Commercial Paper investments are short-term promissory notes issued by major corporations. They provide the highest yield available for a short-term investment. Commercial paper is a direct obligation of the issuing corporation and is available in US denominations for those seeking currency diversification.
Highlights:
- Unlimited issuer guarantee, regardless of the size of the investment
- Fully guaranteed principal and return if held to maturity
- Higher yielding than term deposits, GICs, government-issued Money Market securities and Bankers Acceptances
- High degree of liquidity
- RSP/RIF eligible
Dollars to Invest/Time Horizon:
- Minimum investment (at face value) is $100,000
- Terms vary from one month to one year
Risk/Return:
- A direct obligation of the issuing corporation
- Higher yields than Bankers Acceptances and government-issued Money Market securities of similar term
Liquidity:
- Highly liquid; may be sold at any time, with settlement within one business day
Income:
- Earnings are distributed at maturity
Explore your TD Money Market investment options today
Visit any TD Canada Trust Branch
Call 1-866-222-3456 to discuss your options
Have a few questions?
We’ve provided answers to some of the most common questions people have about Money Market investments.
Collapse Why would I want to invest in Money Market products?
Money Market investments offer attractive benefits to investors with many different needs. They're ideal if you want to invest for short term goals--such as saving for a car or a down payment on a new home--or maintain easy access to your money during the term of your investment. They may offer a higher return than traditional savings options, and backed by the government, they provide the very high security you want for savings you can't afford to risk.
Expand How risky are Money Market investments?
Money Market investments are a low risk investment. Your principal and return are guaranteed by the issuer however they are not CDIC insured.
Expand Can I invest in Money Market products longer than one year?
Money Market products are short-term investments of up to 12 months. If you are looking to invest for longer than 12 months, Fixed Income investments are a great option.
Expand What about taxes?
A T5008 and/or an NR4 will be issued based on your residency.
About Money Market Investments
Money market investments are short-term investments, typically up to 12 months, used by governments and corporations to raise capital. These investments offer a fixed rate of return held to maturity, providing investors with a known yield at the end of the investment term. They also maintain liquidity, allowing easy access to funds. Money market investments are sold at a "discount" to the “par" (maturity) value, with the difference between the discounted price and the par value amount representing the interest received on the investment.
Benefits of TD Money Market Investments
- Competitive Rates: TD Money Market investments offer fixed rates of return that may be higher than traditional savings accounts.
- Short Terms: The terms of Money Market investments are up to 12 months.
- Liquidity: Investors maintain easy access to their money during the term of the investment.
Types of TD Money Market Investments Available
- Government of Canada Treasury Bills (T-Bills): These offer the safest Canadian investments available, fully guaranteed by the federal government, and are RSP/RIF eligible. They are available in both US dollars and Canadian dollars.
- Government Guaranteed Commercial Paper: These investments are short-term promissory notes issued by Crown Corporations and fully guaranteed by the Government of Canada, offering a slightly higher rate of return than T-Bills.
- Provincial Treasury Bills and Promissory Notes: These investments offer attractive interest rates and are fully guaranteed by the issuing province, potentially offering higher yields than Government of Canada T-Bills.
- Bankers' Acceptances (BAs): These are short-term promissory notes issued by corporations with the unconditional guarantee of a major Canadian chartered bank, offering higher returns than Government of Canada T-Bills.
- Commercial Paper: These investments are short-term promissory notes issued by major corporations, providing the highest yield available for a short-term investment.
Common Questions About Money Market Investments
- Why Invest in Money Market Products?: Money Market investments offer attractive benefits for short-term goals, providing higher returns than traditional savings options and backed by government security.
- Risk Level: Money Market investments are low-risk, with the principal and return guaranteed by the issuer, although they are not CDIC insured.
- Investment Duration: Money Market products are short-term investments of up to 12 months. For longer investments, Fixed Income investments are a great option.
- Tax Considerations: A T5008 and/or an NR4 will be issued based on residency.
This information provides a comprehensive overview of Money Market investments and the specific options available through TD, including their benefits and risk considerations.
