Money Market investments offer attractive benefits to companies with many different needs. As a starting point 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 excellent 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 $1,000,000 Treasury Bill, you invest less than $1,000,000. At maturity, your principal plus the interest it has earned over the 30 days will total $1,000,000.
- 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 you can "sell on the secondary market." That is, TD Bank will buy your investment back at the market rate prevailing at the time you want to sell.
For more on how TD can work with you to manage your cash, foreign exchange and interest rate risk, review About TD Financial Management Services. Or, if you have a specific question, e-mail us and a TD Treasury representative will follow-up directly with you.
