How Should the Johnsons Manage Their Cash?

In January, Harry and Belinda Johnson had $10,660 in monetary assets:

• $1,100 in cash on hand;
• $1,200 in a savings account at Windsor Family Credit Union earning 1% interest;
• $4,000 in a TFSA at the TD Bank, earning 1.1% interest;
• $2,260 in a TD Bank Mutual Fund earning a return of 1.3%;
• $2,100 in their regular chequing account at Windsor Family Credit Union earning 1%.

1. Their annual budget, cash-flow calendar, and revolving savings fund indicate that the Johnsons will have additional amounts of about $8500 to deposit in the coming year. What are your recommendations for the Johnsons regarding use of an investment account? Why?