Personal Finance

Big 6 High-Interest Cash Funds/Accts [4.25% - 3.25%] [CAD/USD] [CDIC: Yes!] [i.e. HISAs for the discerning saver/client]

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  • Jan 28th, 2023 4:31 pm
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Deal Addict
May 3, 2008
2700 posts
1758 upvotes
Markham
mike20002019 wrote: I will report this by early next month here.

Just wondering if someone can do a try test on money market mutual fund. I sold DYN6000 and bought CIB237 (money market fund) because of CIB237 has a higher return (4.5%). I am wondering if the similar interest payout will be the same as DYN6000?

In the CIB237 document, it says "strives to maintain a NAV per unit of $10 by allocating income daily and distributing it monthly...", "The Fund allocates net income daily and distributes it monthly". It does not use "accrue" wording here like ISA. If it is same, for CIB237, you may see some amount of CIB237 will show up again in the beginning of next month after you sell it.
yes I beleive that is the case. The MM funds distribute monthly only. So if short term dabbling, I choose $ instead of units for the interest.
Deal Addict
Mar 30, 2009
1213 posts
774 upvotes
mike20002019 wrote: I will report this by early next month here.

Just wondering if someone can do a try test on money market mutual fund. I sold DYN6000 and bought CIB237 (money market fund) because of CIB237 has a higher return (4.5%). I am wondering if the similar interest payout will be the same as DYN6000?

In the CIB237 document, it says "strives to maintain a NAV per unit of $10 by allocating income daily and distributing it monthly...", "The Fund allocates net income daily and distributes it monthly". It does not use "accrue" wording here like ISA. If it is same, for CIB237, you may see some amount of CIB237 will show up again in the beginning of next month after you sell it.
Is the 4.5% that you are getting after you discount the MER for CIB237? There are no fees associated with DYN6000 - what you see as the posted rate for DYN6000 is what you get.
Jr. Member
Nov 26, 2019
163 posts
111 upvotes
frugal1 wrote: Is the 4.5% that you are getting after you discount the MER for CIB237? There are no fees associated with DYN6000 - what you see as the posted rate for DYN6000 is what you get.
For CIB237 yield, I am using the number from my broker account information. My broker does not have the DYN6000 info, I am using the OP link, https://ads.scotiabank.com/ADS/Download/980/en. It says 4.10 to 4.15.
Deal Addict
Mar 30, 2009
1213 posts
774 upvotes
mike20002019 wrote: For CIB237 yield, I am using the number from my broker account information. My broker does not have the DYN6000 info, I am using the OP link, https://ads.scotiabank.com/ADS/Download/980/en. It says 4.10 to 4.15.
Thanks! Sorry for the confusion - I realized that I was looking at the yield for the F-Series Premium (CIB238) yielding 4.59% and was wondering if you were deducting the MER! I now see that the plain vanilla F-Series (CIB327) is yielding 4.53%. I'm relying on the information on the CIBC website: https://www.cibc.com/en/personal-bankin ... funds.html.

I haven't looked at money market funds for ages as at one point some had negative returns. Of course, these money market funds are very different from what's being discussed in this thread, but it's a good reminder that there's are other savings options for those who want to take a little bit more risk. I'm no expert, but I think money market funds would even be considered riskier than high interest savings ETFs, such as PSA, CSAV, CASH, etc., which have a separate threat also created by @ADenariusSaved. Those ETFs seem to yield just slightly more than CIB327.
Jr. Member
Nov 26, 2019
163 posts
111 upvotes
frugal1 wrote: Thanks! Sorry for the confusion - I realized that I was looking at the yield for the F-Series Premium (CIB238) yielding 4.59% and was wondering if you were deducting the MER! I now see that the plain vanilla F-Series (CIB327) is yielding 4.53%. I'm relying on the information on the CIBC website: https://www.cibc.com/en/personal-bankin ... funds.html.

I haven't looked at money market funds for ages as at one point some had negative returns. Of course, these money market funds are very different from what's being discussed in this thread, but it's a good reminder that there's are other savings options for those who want to take a little bit more risk. I'm no expert, but I think money market funds would even be considered riskier than high interest savings ETFs, such as PSA, CSAV, CASH, etc., which have a separate threat also created by @ADenariusSaved. Those ETFs seem to yield just slightly more than CIB327.
For the risk level, here is my thought in the order. HISA < HISA ETF < Money market < money market ETF <bond…
Jr. Member
Jul 29, 2021
111 posts
80 upvotes
For Questrade platform where can I find the DYN6004 ?
Deal Fanatic
Feb 17, 2007
6102 posts
2349 upvotes
Mort Réal
sapulous wrote: If anyone is using or plans to use Scotia iTrade, be aware of the Low Activity Account Administration Fee stipulations and exceptions:
https://www.scotiaitrade.com/en/home/pricing-fees.html (administration fee, see point #2 at the bottom).
I doubt anyone would bother with this for less than 10k savings, but you do raise a good point in case there are a few of those people. My guess is such individuals would not have an iTrade account anyway, and they would obviously read the fee schedule before opening one, right?
I can't afford to buy cheap stuff. Therefore, I'm thirsty for deals on durable goods.
Deal Addict
Jan 31, 2007
4968 posts
5084 upvotes
Richmond Hill
savemoresaveoften wrote: It’s under the mutual fund section under trading.
Found it, thanks.
I was looking at Quote section of mutual fund, not Trade section, that's why I can't find it.
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
Deal Addict
Jan 31, 2007
4968 posts
5084 upvotes
Richmond Hill
savemoresaveoften wrote: Takes 2 days. IE allows dyn6000, can’t do dyn6004. You will be fine,
I saw DYN6004, does it mean I can only see it but can't actually buy it?
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
[OP]
Deal Addict
User avatar
Jan 11, 2020
3967 posts
3268 upvotes
Torontois @ 宇宙中心
WHO wrote: I doubt anyone would bother with this for less than 10k savings, but you do raise a good point in case there are a few of those people. My guess is such individuals would not have an iTrade account anyway, and they would obviously read the fee schedule before opening one, right?
Clearly, I haven't read it lol...Or maybe I did at one point and just forgot cuz I just leave random amounts of money piled in random places...Pretty disorganized. But I'm very cheap and I'd flip my shit if I saw a fee that I did not need to pay.

I figured I'd have to put that disclaimer in, don't want to knowingly give bad advice (even though it may happen accidentally).
[OP]
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Jan 11, 2020
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Torontois @ 宇宙中心
BuyCar wrote: For Questrade platform where can I find the DYN6004 ?
Oh man, you don't want to use Questrade for that, $9.99 commission...If you really want to peek it, go into the mutual fund section.

If you plan to pack more than 10k in these things, you might as well grab an iTrade account, but I should be banned from telling people to open more brokerage accounts...

Not the worst broker though. If you stay on the TSX, you get all these ETFs commission free:
https://www.scotiaitrade.com/en/home/in ... e-etf.html
Click "See full list here"
I haven't actually done Norbert's Gambit here though...And without the free list (and if you don't use anything on it), not good at all...
Last edited by ADenariusSaved on Jan 20th, 2023 8:58 am, edited 4 times in total.
Newbie
Jun 25, 2007
83 posts
41 upvotes
Vancouver
frugal1 wrote: Thanks! Sorry for the confusion - I realized that I was looking at the yield for the F-Series Premium (CIB238) yielding 4.59% and was wondering if you were deducting the MER! I now see that the plain vanilla F-Series (CIB327) is yielding 4.53%. I'm relying on the information on the CIBC website: https://www.cibc.com/en/personal-bankin ... funds.html.
...
In the table in the above CIBC link, anyone know how to definitively tie the name of the fund, e.g., CIBC Money Market Fund - Class F Units (with it's accompanying performance yields) to its symbol, CIB237?
Seems to me that the publicly available table should really include the symbol of the fund, like Scotiabank does here.
Deal Addict
May 3, 2008
2700 posts
1758 upvotes
Markham
cheapshopper wrote: I saw DYN6004, does it mean I can only see it but can't actually buy it?
when you try to place the order, it will tell u its not available.

I think only Itrade (scotia) customers and full service advisors have access to the dyn6004.
Sr. Member
Sep 14, 2009
810 posts
455 upvotes
Kingston
jbr439 wrote: In the table in the above CIBC link, anyone know how to definitively tie the name of the fund, e.g., CIBC Money Market Fund - Class F Units (with it's accompanying performance yields) to its symbol, CIB237?
Seems to me that the publicly available table should really include the symbol of the fund, like Scotiabank does here.
Wild how they would omit the most basic and important part of the data...I found this that ties the name & symbol together :
https://www.cibcassetmanagement.com/ema ... 237_en.pdf
Sr. Member
Sep 14, 2009
810 posts
455 upvotes
Kingston
savemoresaveoften wrote: when you try to place the order, it will tell u its not available.

I think only Itrade (scotia) customers and full service advisors have access to the dyn6004.
For anyone considering switching out of iTrade to another brokerage - CIBC Investors Edge allows you to transfer in and hold DYN6004.
Deal Addict
Jan 31, 2007
4968 posts
5084 upvotes
Richmond Hill
If seem like DYN6000/6004 give us highest rate, correct?

Too bad i cant buy DYN6004, thinking about buy $6000 DYN6000 TFSA.

Now the rate go up and down with BoC rate change. Correct?

How liquid is it? If rate go down, will I run into i want to sell but no one want to buy it?

Or is actually sell back to the issuing bank??
******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************
[OP]
Deal Addict
User avatar
Jan 11, 2020
3967 posts
3268 upvotes
Torontois @ 宇宙中心
cheapshopper wrote: If seem like DYN6000/6004 give us highest rate, correct?

Too bad i cant buy DYN6004, thinking about buy $6000 DYN6000 TFSA.

Now the rate go up and down with BoC rate change. Correct?

How liquid is it? If rate go down, will I run into i want to sell but no one want to buy it?

Or is actually sell back to the issuing bank??
These aren't traded on a public exchange, so you don't have to worry about liquidity and spreads. These are bank products offered to (theoretically) bank clients. It is basically like a bank mutual fund without the fees, in the case of DYN6004.
DYN6004 has tracked BoC rates almost exactly for the very very few months I've been monitoring it? (like a quarter? lol)
Member
Dec 27, 2017
411 posts
300 upvotes
Ontario
ADenariusSaved wrote: These are bank products offered to (theoretically) bank clients. It is basically like a bank mutual fund without the fees, in the case of DYN6004.
Just to refine this a bit, they are different from mutual funds, even though they get bought and sold through the mutual fund system. There are three key differences though, as they are legally bank savings accounts, not mutual funds:

1. They have CDIC insurance.
2. They pay interest instead of dividends.
3. They are not PFIC, which is critical for anyone with U.S. tax reporting needs.
[OP]
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Jan 11, 2020
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Optimizer88 wrote: Just to refine this a bit, they are different from mutual funds, even though they get bought and sold through the mutual fund system. There are three key differences though, as they are legally bank savings accounts, not mutual funds:

1. They have CIDC insurance.
2. They pay interest instead of dividends.
3. They are not PFIC, which is critical for anyone with U.S. tax reporting needs.
True, they are bought and sold like mutual funds and that's where the similarities end. I should have contextualized that.
Do bond mutual funds and ETFs distribute dividends or interest? I never put those in my taxable so I dunno, actually, I don't even mess with bonds at all...
Member
Dec 27, 2017
411 posts
300 upvotes
Ontario
ADenariusSaved wrote: True, they are bought and sold like mutual funds and that's where the similarities end. I should have contextualized that.
Do bond mutual funds and ETFs distribute dividends or interest? I never put those in my taxable so I dunno, actually, I don't even mess with bonds at all...
It depends on the legal structure of the fund. Many Canadian domiciled funds operate as trusts and distribute income (and typically would generate a T3).

RBC has a little article describing all the possible types of reporting on mutual funds here https://www.rbcgam.com/en/ca/learn-plan ... ork/detail that you may find useful.
Last edited by Optimizer88 on Jan 20th, 2023 1:12 pm, edited 1 time in total.

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