Savings account instead of money market?

[green tea]

Hi,

I am building a Canadian version of the Permanent Portfolio.

Is it okay to use a savings account instead of cash for the money market portion of the portfolio?

I ask because right now I have access to a savings account that pays 1.25% interest in my tax free account. I have access to money market ETFs, but they all seem to have lower returns. For example, the iShares ETF CMR has only returned an average of 0.96% over the past three years. The savings account is more liquid, it's backed by government insurance, and there are no trading or management fees.

Is there any reason to not use a savings account until money market funds pay more?

Thanks

[green tea]

I noticed that this question is answered elsewhere, so I don't need any replies now!

[Ad Orientem]

Poor Cash. It's the Rodney Dangerfield of HBPP assets. You can almost see the layers of dust on this particular forum. I was so excited to see a new post. I felt like the Guardian of Forever waiting for a question. (http://youtu.be/Mws6nSzeJos).

False alarm though...