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/
What are these?
There are high-interest funds offered by the Big 6 banks for their brokerage clients. You can also access ISAs from smaller banks and insurance companies. The yield isn't as high as the HISA ETFs, but it's way better than what you'd get at the 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.
How do I buy them?
These ISAs are accessed through the mutual fund sections of your discount broker, they aren't really mutual funds but they are deposits, they just use the Mutual Fund back-end interface (FundServ). Ideally you would want no fees for these transactions (Questrade charges $9.99). Bank discount brokerages provide these for free for the most part. I would suggest Desjardin Disnat (as it has no commissions on TSX/NYSE if you're under age 30 OR have more than 15k with them), or National Bank Discount Brokerage (no commissions on TSX/NYSE under age 30 OR have more than 20k with them OR be a part of a professional association). I have not personally found a way to buy these with Wealthsimple.
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 TDB8150 (TD's version (4.05%)) in TD Direct Investing which I tested - TDDI services CAN be free from a monthly $100 PAD deposit, or $15k minimum threshold). No commissions but there is an initial minimum of $1k and subsequent inputs of $100+ (tested @ both BNSiT/TDDI). You can choose to receive your interest in cash xOR DRIP (dividend re-investment plan). QTrade (not Questrade) was rumoured to be able to access F-Series, but they are not entirely commission-free - unless you buy from their ETF menu/or these mutual funds?
@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
[Blocked link - DO NOT CLICK] --> COPY-PASTE IN URL BAR: https://ads.scotiabank.com/ADS/Download/943/en
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 [Blocked links - DO NOT CLICK] --> COPY-PASTE IN URL BAR
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:
https://forums.redflagdeals.com/high-in ... d-2574002/
What are these?
There are high-interest funds offered by the Big 6 banks for their brokerage clients. You can also access ISAs from smaller banks and insurance companies. The yield isn't as high as the HISA ETFs, but it's way better than what you'd get at the 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.
How do I buy them?
These ISAs are accessed through the mutual fund sections of your discount broker, they aren't really mutual funds but they are deposits, they just use the Mutual Fund back-end interface (FundServ). Ideally you would want no fees for these transactions (Questrade charges $9.99). Bank discount brokerages provide these for free for the most part. I would suggest Desjardin Disnat (as it has no commissions on TSX/NYSE if you're under age 30 OR have more than 15k with them), or National Bank Discount Brokerage (no commissions on TSX/NYSE under age 30 OR have more than 20k with them OR be a part of a professional association). I have not personally found a way to buy these with Wealthsimple.
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 TDB8150 (TD's version (4.05%)) in TD Direct Investing which I tested - TDDI services CAN be free from a monthly $100 PAD deposit, or $15k minimum threshold). No commissions but there is an initial minimum of $1k and subsequent inputs of $100+ (tested @ both BNSiT/TDDI). You can choose to receive your interest in cash xOR DRIP (dividend re-investment plan). QTrade (not Questrade) was rumoured to be able to access F-Series, but they are not entirely commission-free - unless you buy from their ETF menu/or these mutual funds?
@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
[Blocked link - DO NOT CLICK] --> COPY-PASTE IN URL BAR: https://ads.scotiabank.com/ADS/Download/943/en
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 [Blocked links - DO NOT CLICK] --> COPY-PASTE IN URL BAR
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:
Last edited by ADenariusSaved on Mar 20th, 2023 7:53 pm, edited 64 times in total.
Bank ISAs, CDIC! <= 4.50%: https://forums.redflagdeals.com/bank-in ... sd-2579841
HISA ETFs, NO CDIC! <= 4.96%: https://forums.redflagdeals.com/high-in ... s-2574002/
HISA ETFs, NO CDIC! <= 4.96%: https://forums.redflagdeals.com/high-in ... s-2574002/
I just want to see if you are okay with my proposal before I start changing it.