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Bank InvSavAccts [<= 4.50%] [REAL HISAs] [CDIC: Yes!] [CAD/USD]

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primordialSingularit…

Bank InvSavAccts [<= 4.50%] [REAL HISAs] [CDIC: Yes!] [CAD/USD]

For those who are concerned about the CDIC/CIPF limitation on high-yield HISA/CASH ETFs discussed at length here:
https://forums.redflagdeals.com/high-in ... d-2574002/

WTF are these?
There are high-interest funds offered by the Big 6 banks for their brokerage clients. The yield isn't as high as the HISA ETFs, but it's way better than what you'd get at their banking division savings account. Though these may not exceed bank promotional rates you'd see in the Tangerine lottery, it'll definitely be better than bank base rates. These have nothing to do with "investments", and theoretically shouldn't be charging you with fees. Just think of these as depository accounts, created in the form of a mutual fund, that are offered to more knowledgeable clients while the plebs are shoved into 1% base-rate savings accounts. This is classic consumer price discrimination (based on client knowledge). The less you know, the more banks will screw you. The more you know, the more respect/yield you get, they know they can't rip you off and give you something more honest. These are all CDIC-insured, so you'll be backed for 100k per account.

@Tiger_paws mentioned the following bank documentation (I added Scotia's sorry link (don't use it, copy-paste it)

https://www.rbcroyalbank.com/products/isa/index.html - available to rbc direct investing clients
https://www.td.com/ca/en/asset-manageme ... solutions/ - available to td direct investing clients
[Intercepted/broken link- DO NOT CLICK] --> COPY-PASTE IN URL BAR: https://ads.scotiabank.com/ADS/Download/943/en

Personally, I use Scotia iTrade to access BNS: DYN6004 (F-series - advisor class) which is currently at a 4.50% yield, the highest I see out of this bunch as of Feb 01 2023. I pay no fees - BUT that might be because I have a > 10k stash with them. You can buy this in the Mutual Fund Section of Scotia iTrade (and TD Direct Investing which I tested). No commissions but there is an initial minimum of $1k and subsequent inputs of $100+ (tested @ both). You can choose to receive your interest in cash or DRIP (dividend re-investment plan)

Investment Savings Accounts: Maximize Interest in Your Brokerage Account [if you want to go beyond the Big 6]
Manulife and EQ Bank look good about now:
https://mrthrifty.ca/investment-savings ... e-account/

TD's guidance on CDIC:
To determine the eligibility of your deposit for CDIC coverage, you should contact the CDIC at [email protected] or 1-800-461-2342.

Additional Documentation:

Scotiabank documentation as an example (and cuz they have the highest rate as of this post), found by X360 - do not click on these links, but copy paste these URLs in to the browser directly (fix the first link by removing the 2 spaces around the main domain address). Scotia's website doesn't jive well with RFD's traffic tracers:

Documentation straight from the horse's mouth as to what these are:

Additional Scotia Documentation
https:// ads.scotiabank. com/news/higher-cad-rates-personal-corporate-investment-savings-account-isa-rate-december-16-2022/en-CA
https://ads.scotiabank.com/Rates
https://ads.scotiabank.com/ADS/Download/980/en
https://ads.scotiabank.com/ADS/Download/938/en
https://ads.scotiabank.com/frequently-asked-questions

TD Documentation found by @Optimizer88 (you can click on the link):
https://www.td.com/ca/en/asset-manageme ... solutions/

Left thread summary below for crowd-sourced updates:

Ignore the signature recursion:
Last edited by ADenariusSaved on Feb 2nd, 2023 11:43 pm, edited 51 times in total.
Thread Summary
Crowd-sourced updates [manual process, may contain errors, verify before acting (especially the update dates)]:

Latest Big Six HISA FundSERV discount broker rates:

Canadian Dollars
Royal Bank: 4.05% [Updated: Feb 1 2023]
TD Bank: 4.05% [Updated: Feb 01 2023]
BMO: 4.35% [Updated: Feb 2nd 2023]
Scotiabank (A-series): 4.35% for <$100K, 4.40% for $100K+ (series A - see Note below) [Updated: Jan 30 2023]
Scotiabank (F-series): 4.50% (series F - see Note below) [Updated: Jan 30 2023]
CIBC: 3.80% [Updated: Jan 20th 2023]
National Bank: 4.05% [Updated: Feb 3rd 2023]


US Dollars
Royal Bank. 3.90% [Updated: Jan 20th 2023]
TD Bank. 3.90% [Updated: Jan 20th 2023]
BMO 4.00% [Updated: Jan 20th 2023]
Scotiabank A-Series: 4.00% for <$100K, 4.05% for $100K+ (series A - see Note below) [Update: Jan 20 2023]
Scotiabank F-Series: 4.15% (series F - see Note below) [Updated: Jan 20 2023]
CIBC. 3.80% [Updated: Jan 20th 2023]
National Bank 3.70% [Updated: Jan 20th 2023]

(Note) Scotia's discount brokerage arm (Scotia iTrade) and QTrade (as in, not Questrade) allows customers to purchase the more favorable F-Series - usually only available to advisors. Only Scotia A-series available through some other brokers (lower yield than F-Series).

Sources [if link not working, copy paste full URL into browser search bar]:
Royal Bank: https://www.rbcroyalbank.com/products/isa/
TD Bank: https://www.td.com/ca/en/asset-manageme ... solutions/
BMO: Not available on website. Customers can see the rates when logged into BMOIL
Scotiabank: https://ads.scotiabank.com/ADS/Download/980/en
CIBC: https://www.renaissanceinvestments.ca/products/hisa
National Bank: https://www.nbinvestments.ca/products/c ... ormer.html

******************************************************************************************************************************

More bank ISAs (B2B/EQ/HomeBank/Home Trust/Manulife etc):
https://mrthrifty.ca/investment-savings ... e-account/

Straight copy-paste from above site (with 3rd column deleted in Word), which updated on Jan 27 2023 pre-rate increase, unless otherwise specified:
Yes, this may be redundant with the above block, but copy-pasting is easier. Thank you to Mr. Thrifty for compiling the below, in the site link above
Account (Fund Code) Indicative Rate**
B2B Bank (BTB100) 3.50%
BMO (BMT104, BMT109, BMT114) Information not available – contact BMO to inquire - 4.35% [Updated: Feb 2nd 2023]
CIBC (ATL5000) 3.80%
Equitable Bank (EQB1000) 3.95%
HomeBank (HOB100) 4.20% [Updated: Feb 01 2023]
Home Trust Company (HOM100) 4.20% [Updated: Feb 01 2023]
ICICI Bank (IBN100) Information not available – contact ICICI to inquire
Manulife Bank (MIP510) 4.25% [Updated: Feb 01 2023]
Manulife Trust (MIP710) 4.25% [Updated: Feb 01 2023]
National Bank (NBC100, NBC6100, NBC8100) 3.80%
RBC (RBF2010, RBF2020, RBF2030, RBF2040) 4.05% [Updated: Feb 1 2023]
Scotiabank A-Series (DYN6000, DYN5000, DYN3064, DYN3074, DYN3054) tiered: $0-$99,000 = 4.35% $100,000 – unlimited = 4.40% [Updated: Jan 30 2023]
TD Bank (TDB8150, TDB8155, TDB8157, TDB8159) 4.05% [Updated: Feb 01 2023]


******************************************************************************************************************************

Interest Rate Announcements and Schedules by Tiff Macklem (Bank of Canada) and Jerome Powell (US Federal Reserve):

Next Canadian Interest Rate Update: March 08 2023
Next American Interest Rate Update: March 22 2023

https://www.bankofcanada.ca/core-functi ... rest-rate/
https://www.federalreserve.gov/monetary ... endars.htm
406 replies
Member
Mar 12, 2006
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Thanks Do you know if there are any issues with buying a HISA mutual fund from a bank not affiliated with your brokerage? Any fees, minimum holding periods, etc?

I have TD DI and CIBC Investors Edge. In the TD DI account I don't see for example the DYN6000 Scotia ISA fund, I see in in CIBC Investors Edge.

Are TD just greedy and don't want people to buy anything else than TDB8150 fund?

Also, it seems like these funds have 0.15-0.25% trailing fee, which may be waved if buying from the affiliated bank. But even with the trailing fee Scotia's ISA is much higher than the rest.
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vdimitrov wrote: Thanks Do you know if there are any issues with buying a HISA mutual fund from a bank not affiliated with your brokerage? Any fees, minimum holding periods, etc?

I have TD DI and CIBC Investors Edge. In the TD DI account I don't see for example the DYN6000 Scotia ISA fund, I see in in CIBC Investors Edge.

Are TD just greedy and don't want people to buy anything else than TDB8150 fund?

Also, it seems like these funds have 0.15-0.25% trailing fee, which may be waved if buying from the affiliated bank. But even with the trailing fee Scotia's ISA is much higher than the rest.
I'm in HSBC for now, but I'm going to move my shit to Wealthsimple to grab the high-interest ETFs in this thread: high-interest-cash-etfs-4-19-4-03-cad-usd-2574002/

I think it makes sense that a bank would restrict competition by limiting clients to their own products, TD/Royal/BMO are the dirtiest about this. These ISA/FundServs are strange products I don't fully understand myself. I don't even know what a trailing fee is...Never had to deal with this financial crookery at Questrade/WS/IBKR. iTrade can buy those high-interest cash ETFs and the Scotia product DYN6004.
I learned about fund loads in my corporate finance class (elective as a sci-student), but never encountered them in my life, I figure it's just crookery. Good to discuss it here though.

Curiously DYN6004 says 3.80%...Gotta use this for family members that are too sketched out about not having CDIC on the higher-yielding ETFs. No trailer fees on DYN6004.
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vdimitrov wrote: Thanks Do you know if there are any issues with buying a HISA mutual fund from a bank not affiliated with your brokerage? Any fees, minimum holding periods, etc?

I have TD DI and CIBC Investors Edge. In the TD DI account I don't see for example the DYN6000 Scotia ISA fund, I see in in CIBC Investors Edge.

Are TD just greedy and don't want people to buy anything else than TDB8150 fund?

Also, it seems like these funds have 0.15-0.25% trailing fee, which may be waved if buying from the affiliated bank. But even with the trailing fee Scotia's ISA is much higher than the rest.
Banks change the rules all the time. I suggest you ask your broker if you are uncertain. For the most part, there are no trading trailing fees, holding periods, if you buy/sell from your broker's bank's HISA, so this should be done to avoid nasty sudden fee surprises.

As for CIBC IE, I caution that even if you see DYN6000 Scotia, you may not be able to execute the order. Seeing it doesn't mean you are allowed to buy it.
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In regards to Scotia's DYN6004, which currently pays the highest interest of 3.80% it is F series fund, no trailing fees or holding periods as the F series funds are supposed to be only available via financial advisors, where clients pay other commisions.

I am not aware of any other Canadian bank allowing their brokerage customers to buy their F series funds directly. If I. was with Scotiabank I would be totally parking my cash in DYN6004.

The other funds we've discussed are A series funds, which normally have trailing fees and some may have min holding periods and can be bought by individual investors.
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vdimitrov wrote: In regards to Scotia's DYN6004, which currently pays the highest interest of 3.80% it is F series fund, no trailing fees or holding periods as the F series funds are supposed to be only available via financial advisors, where clients pay other commisions.

I am not aware of any other Canadian bank allowing their brokerage customers to buy their F series funds directly. If I. was with Scotiabank I would be totally parking my cash in DYN6004.

The other funds we've discussed are A series funds, which normally have trailing fees and some may have min holding periods and can be bought by individual investors.
Thanks! That makes a lot of sense. Guess I'm lucky I have access to the DYN6004 through Scotia iTrade. I can personally confirm that Scotia iTrade allows the purchase of the high-interest ETFs as well (unlike TDDI, BMOIL, RBCDI), so they're not anti-competitive. This is the first time I heard of a trailer fee and I've been into this stuff since my teens. But I've always tried to get the best products at the time of research, so I'm surprised I created this thread...Some people prefer the comfort of the Big 6 though, like my folks (who are not EN/FR literate or high-school numerate).

But at least with these kinds of threads, there is some kind of transparency & free information flow, so people can move on from standard bank savings accounts currently paying 1% or less...They'll still win out despite the fees anyway.
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if we are using Itrade platform where do we find the DYN6004 ?
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sk1001 wrote: if we are using Itrade platform where do we find the DYN6004 ?
It's in the mutual fund section - go to trade and then mutual funds I think
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sk1001 wrote: if we are using Itrade platform where do we find the DYN6004 ?
Go into iTrade, select your account, and hit the mutual fund tab as the poster above mentioned. Then type in DYN6004 (in red).
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Sweet thanks for that info.

If i do Dividend cash - the interest earned will get deposited right?

yes newbie question :D
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sk1001 wrote: Sweet thanks for that info.

If i do Dividend cash - the interest earned will get deposited right?

yes newbie question :D
Yep, easier to keep track of as well for tax purposes. I only DRIP/reinvest in TFSA/RRSP/RESP where there aren't stringent record-keeping requirements other than contribution (very easy).
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Sorry for bugging with this, from what I understand with this DYN6004 is that their are no fees? Do we have to hold them up to 90 days?
From what I was told because it's like interest we'll get a t5?


"If you redeem or switch your mutual fund within 90 days of the purchase date, there are fees that may be relevant to you: Early Redemption Transaction fees may be charged and deducted from the settlement amount by some mutual fund companies including Scotia Mutual Funds. Please refer to the prospectus of each fund for details."
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sk1001 wrote: Sorry for bugging with this, from what I understand with this DYN6004 is that their are no fees? Do we have to hold them up to 90 days?
From what I was told because it's like interest we'll get a t5?


"If you redeem or switch your mutual fund within 90 days of the purchase date, there are fees that may be relevant to you: Early Redemption Transaction fees may be charged and deducted from the settlement amount by some mutual fund companies including Scotia Mutual Funds. Please refer to the prospectus of each fund for details."
I have not found any documentation specific to DYN6004, opaque as I said...But I don't see any fees? Maybe something to call about, but Scotia probably has the worst phone customer service I've experienced of the Big 5. Going on the French line barely helps.

Here is the A series document: https://www.scotiafunds.com/en/home/all ... -fund.html
But like...that has a fee, and we're totally not buying A's, we're buying F's.
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ADenariusSaved wrote: I have not found any documentation specific to DYN6004, opaque as I said...But I don't see any fees? Maybe something to call about, but Scotia probably has the worst phone customer service I've experienced of the Big 5. Going on the French line barely helps.

Here is the A series document: https://www.scotiafunds.com/en/home/all ... -fund.html
But like...that has a fee, and we're totally not buying A's, we're buying F's.
Wish I knew about these ISAs earlier. I learn something new everyday. In some cases, the rates are higher than even some of the other online places that RFDers love (barring promotional rates).

So I did some reasearch and that A series document you linked to know is not referring to the same product. That is for a money market fund whereas these are investment savings account.

See the link here https://ads.scotiabank.com/frequently-asked-questions (one example) and I hope it answers some of your questions.
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Gingercookie wrote: Banks change the rules all the time. I suggest you ask your broker if you are uncertain. For the most part, there are no trading trailing fees, holding periods, if you buy/sell from your broker's bank's HISA, so this should be done to avoid nasty sudden fee surprises.

As for CIBC IE, I caution that even if you see DYN6000 Scotia, you may not be able to execute the order. Seeing it doesn't mean you are allowed to buy it.
My god, this is messy data to handle vs. the ETFs...I updated Scotia's because I'd use that one personally.
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ADenariusSaved wrote: My god, this is messy data to handle vs. the ETFs...I updated Scotia's because I'd use that one personally.
I propose the following format in the thread summary. Instead of grouping the banks by rates I've now listed the banks and their rates individually, because it is becoming more frequent that the rates among them are starting to differ, sometimes by a lot. Look at the Canadian dollars - today almost all of them offer different rates.

BNS is the only one that I show series F, because currently only Scotia's discount broker allows customers to purchase the more favorable series F.


Latest Big Six HISA FundSERV discount broker rates (as of Dec 8th 2022)

Canadian Dollars
RY. 3.55%
TD. 3.40%
BMO 3.65%
BNS 4.05% (series F)
CIBC. 3.25%
NA. 3.25%


US Dollars
RY. 3.40%
TD. 3.40%
BMO 3.50%
BNS 3.65% (series F)
CIBC. 3.40%
NA. 3.40%
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Gingercookie wrote: I propose the following format in the thread summary. Instead of grouping the banks by rates I've now listed the banks and their rates individually, because it is becoming more frequent that the rates among them are starting to differ, sometimes by a lot. Look at the Canadian dollars - today almost all of them offer different rates.

BNS is the only one that I show series F, because currently only Scotia's discount broker allows customers to purchase the more favorable series F.


Latest Big Six HISA FundSERV discount broker rates (as of Dec 8th 2022)

Canadian Dollars
RY. 3.55%
TD. 3.40%
BMO 3.65%
BNS 4.05% (series F)
CIBC. 3.25%
NA. 3.25%


US Dollars
RY. 3.40%
TD. 3.40%
BMO 3.50%
BNS 3.65% (series F)
CIBC. 3.40%
NA. 3.40%
Thanks!

You're free to change it as you desire, anyone can really...

The banks make this so convoluted, I'm almost tempted to just give ranges of A-F series. But the only product I know is Scotia. And these aren't as transparent as the HISA ETFs to be able to read product offerings accurately.
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ADenariusSaved wrote: Thanks!

You're free to change it as you desire, anyone can really...

The banks make this so convoluted, I'm almost tempted to just give ranges of A-F series. But the only product I know is Scotia. And these aren't as transparent as the HISA ETFs to be able to read product offerings accurately.
Hahaha, but you are in charge of this thread. Smiling Face With Open Mouth I just want to see if you are okay with my proposal before I start changing it.
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Gingercookie wrote: Hahaha, but you are in charge of this thread. Smiling Face With Open Mouth I just want to see if you are okay with my proposal before I start changing it.
Oh I'm not in charge. You go ahead and do what you need to do! You can even make your own thread and I can delete this one to avoid duplication.

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