Personal Finance

Official RFD thread for High Interest Savings Accounts (See Thread Summary for Updates)

Deal Addict
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Jul 29, 2013
2115 posts
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Ontario
It is possible to put 1M or even 2M in HISA or GIC at @100K for CDIC coverage if you have a spouse or trusted partner.

Home Trust and Home Bank would account for 600K alone if you have two personnel accounts and one joint account at each.

That would leave 400K (1M) or 1,400K (2M) to spread between two to six or so companies for full CDIC coverage depending if they offered joint accounts.
Deal Addict
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Dec 17, 2008
2781 posts
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Winnipeg
Hello, I have been following all the comments, the next major update to the thread will be after the BOC announcment after Dec 4. Just been very busy this month. Thanks for understanding (there are minor changes at this point anyways)
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Deal Addict
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Jul 29, 2013
2115 posts
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Ontario
Shawguy, many thanks for doing this.
Penalty Box
Jul 14, 2014
1365 posts
349 upvotes
Interest rate trend is down, right? Huberts redeemable gic for one year at 2.4 percent might be best for those who only need funds for emergencies.
2.4 percent might look pretty good in a few months
Newbie
Feb 27, 2011
30 posts
16 upvotes
Vancouver
Starting to see ads from Laurentian bank for a 3.3% hisa. Their chequing account looks alright too.

Anyone had experience with them? Do they change their rates often?
Sr. Member
Jul 3, 2019
912 posts
503 upvotes
intraland wrote: Starting to see ads from Laurentian bank for a 3.3% hisa. Their chequing account looks alright too.

Anyone had experience with them? Do they change their rates often?
The rates at B2B/Laurentian will most likely drop I’d say. Not to mention, all the hassle to sign up.

I wouldn’t recommend that bank at all.
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
I am on the fence also. 3.3% is unbeatable but I know if I sign up, the rate will drop shortly thereafter. OTOH, I keep seeing the 3.3% interest rate everyday that I am totally missing out on. What to do, what to do....
Deal Addict
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Jan 4, 2009
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on the links!
kalani13291 wrote: Interest rate trend is down, right?
Oaken announced today an increase to their GIC rates...5 basis points across the board.
Deal Addict
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Jun 23, 2017
1510 posts
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Toronto, ON
F3el96 wrote: The rates at B2B/Laurentian will most likely drop I’d say. Not to mention, all the hassle to sign up.

I wouldn’t recommend that bank at all.
yup. seeing them today with the catchy 'Sorry it took us 173 years to consider what our clients would want' tag line.
Deal Expert
Jan 7, 2002
29710 posts
29129 upvotes
Waterloo, ON
Sauerkraut wrote: Oaken announced today an increase to their GIC rates...5 basis points across the board.
I just got that email as well. That 5bp increase per se is hardly a trend upwards. It's just noise.

What surprised me is why Oaken bothered at all. Their GIC rates are already generally higher than competing CDIC insuranced FIs. (One exception is Alterna Bank's 2.75% vs. Oaken's 2.6% on 2-year GICs. But even with a 5bp bump Oaken is still lower.)
veni, vidi, Visa
Deal Addict
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Jun 23, 2017
1510 posts
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Toronto, ON
saw this today when logging in to RBC ....

"Get 2.5% Interest¹ for 3 months²
Open a New RBC High Interest eSavings Account to take advantage of this offer.

View Limited Time Offer"
Penalty Box
Jul 14, 2014
1365 posts
349 upvotes
Sauerkraut wrote: Oaken announced today an increase to their GIC rates...5 basis points across the board.
Yield curve is awfully flat. Guaranteed 2.4 percent in such environment is possibly equivalent to 2.6 for savings account or not
Deal Fanatic
Oct 7, 2007
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Sauerkraut wrote: Oaken announced today an increase to their GIC rates...5 basis points across the board.
As small as this is, I was still happy to see it. :)
Deal Fanatic
Oct 7, 2007
9404 posts
5374 upvotes
bylo wrote: I just got that email as well. That 5bp increase per se is hardly a trend upwards. It's just noise.

What surprised me is why Oaken bothered at all. Their GIC rates are already generally higher than competing CDIC insuranced FIs. (One exception is Alterna Bank's 2.75% vs. Oaken's 2.6% on 2-year GICs. But even with a 5bp bump Oaken is still lower.)
Maybe they are losing business to the 3.3% offered by B2B and LBC?
Deal Expert
Jan 7, 2002
29710 posts
29129 upvotes
Waterloo, ON
choclover wrote: Maybe they are losing business to the 3.3% offered by B2B and LBC?
That's hardly surprising considering that their rate on HISAs is only 2.3%.

The 5bp bump is for GICs, not HISAs. Keep in mind that Oaken is primarily a mortgage lender (Home Bank/Trust) so the money they need is generally for longer periods. The objective is to match GIC and mortgage maturities,

That's probably why their HISA rates remain uncompetitive while their GIC rates are the highest or nearly highest on the market. With the exception of the near-run on Home a couple of years ago, they really have no use for short-term money.
veni, vidi, Visa
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Apr 2, 2010
4018 posts
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GTA
choclover wrote: I am on the fence also. 3.3% is unbeatable but I know if I sign up, the rate will drop shortly thereafter. OTOH, I keep seeing the 3.3% interest rate everyday that I am totally missing out on. What to do, what to do....
I'd say try to open the account, if it works, great.
The best part is the threads seem to indicate its just a soft credit inquiry to open an account. Please correct me if I am wrong and its a hard inquiry.
Deal Addict
Oct 22, 2015
1678 posts
585 upvotes
Does anyone use Purpose Investments High Interest Savings ETF? https://www.purposeinvest.com/funds/pur ... avings-etf
I know it's only 2.15% and not CDIC protected but they seem to invest in savings accounts of the big banks.
Also may have to pay commission to trade the ETF depending which broker you use.

CI also has similar ETF https://www.firstasset.com/solutions/ov ... avings+ETF
Deal Addict
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Jan 23, 2018
1136 posts
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The Dawg Pound
wra45mon wrote: Does anyone use Purpose Investments High Interest Savings ETF? https://www.purposeinvest.com/funds/pur ... avings-etf
I know it's only 2.15% and not CDIC protected but they seem to invest in savings accounts of the big banks.
Also may have to pay commission to trade the ETF depending which broker you use.

CI also has similar ETF https://www.firstasset.com/solutions/ov ... avings+ETF
IIRC the primary reason a lot of people don't use these is because most of the DIY brokerage accounts have the symbols blocked on their trading platforms and won't let you buy them

You therefore need to have an account elsewhere that allows them to be purchased, in which case you're likely paying fees in some other way that more than negates any advantage in having access to them.

If anyone has information to the contrary, please pipe up because I'd be all over 2.15% returns on cash in my registered accounts
Newbie
Oct 18, 2019
91 posts
94 upvotes
threadhead wrote: IIRC the primary reason a lot of people don't use these is because most of the DIY brokerage accounts have the symbols blocked on their trading platforms and won't let you buy them

You therefore need to have an account elsewhere that allows them to be purchased, in which case you're likely paying fees in some other way that more than negates any advantage in having access to them.

If anyone has information to the contrary, please pipe up because I'd be all over 2.15% returns on cash in my registered accounts
I was just able to pull up quotes for both PSA and CSAV on both TDDI and Questrade. Did not try to execute a trade though.
Deal Addict
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Jan 23, 2018
1136 posts
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The Dawg Pound
Cool... now try entering a mock order to buy and see if the symbol is still valid or if it's grayed out -- maybe we've discovered something

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