Key Features of Money Market Investments
If you're looking for a short-term investment that will generate higher returns than a traditional savings account, then money market investments could be right for you. They are ideal if you need quick access to your money and want the security of keeping your investment safe.
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 keep funds liquid. They offer a higher return
than traditional deposits, and provide the very high security
you want for savings you can't afford to risk.
TD offers a wide selection of Money Market investments. We describe
them on the following pages. But first, here are the key features
that all Money Market investments have in common.
- Money Market investments are short-term investments of up to 18 months.
- They provide very competitive rates of return and quick and easy access to your funds.
- They are issued by governments, banks and corporations.
- They are available in Canadian and U.S. dollars.
- Money Market investments cost you less than their face value.
You buy them "at a discount" today, and they mature
at "par" (face value) at a future date. For example,
to buy a 30-day $10,000 Treasury Bill, you invest less than $10,000.
At maturity, your principal plus the interest it has earned over
the 30 days will total $10,000.
- Most are issued in "bearer form," which
means they are payable to the person who possesses them (you). You
don't have to worry about handling these bearer certificates. For
your convenience and security, TD will hold them in safekeeping,
free of charge.
Money Market investments provide quick access to your funds because they are
fully marketable. That is, TD Canada Trust Bank will buy your investment
back at the prevailing market rate if you should require access
to your cash prior to maturity.
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