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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Jan 20th, 2023 1:10 pm

#201

ADenariusSaved [OP]: Deal Addict; Jan 11, 2020; 3965 posts; 3267 upvotes; Torontois @ 宇宙中心

Jan 20th, 2023 1:10 pm

Optimizer88 wrote: ↑ 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).

Interesting, never bought Canadian stuff (except for non-bond fixed income). But I remember Jim Flahrety going HAM on those income trusts back in the day...

HISA ETFs < 5.02% - no CDIC: https://forums.redflagdeals.com/high-in ... no-2574002
Bank ISAs < 4.25%? + CDIC: https://forums.redflagdeals.com/big-6-h ... es-2579841

Jan 20th, 2023 1:14 pm

#202

Optimizer88: Member; Dec 27, 2017; 411 posts; 300 upvotes; Ontario

Jan 20th, 2023 1:14 pm

ADenariusSaved wrote: ↑ Interesting, never bought Canadian stuff (except for non-bond fixed income). But I remember Jim Flahrety going HAM on those income trusts back in the day...

Our posts just crossed, I had edited the last post to include a link describing some of the mutual fund income complexities.

+1

Jan 20th, 2023 1:52 pm

#203

WHO: Deal Fanatic; Feb 17, 2007; 6102 posts; 2349 upvotes; Mort Réal

Jan 20th, 2023 1:52 pm

ADenariusSaved wrote: ↑ 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...

Their commission-free ETFs are usually the higher MER version (for example if you have both a Vanguard and iShares ETFs tracking the same index, the one with the highest MER will be the free one) so, might be OK for someone starting out but, as soon as you have a significant amount, still much better to pay the commission and save the recurring higher MER eating at your total portfolio. Or, better yet, trade at another broker.

I've done NB at iTrade, this was the quickest NB I ever did. Make the purchase on CND side online, while you have them (trading desk) on the phone, then they will journal the shares LIVE to the US market, and as long as you sell it the same day on the US side, it will settle in USD funds. You do the trades yourself to avoid the huge trade desk commission, you just use them to journal the shares free of charge. The settlement amounts in the account will be out of whack in the meantime while you wait for both to settle, but it works perfectly. I did it with 2700 shares (FTS) rather than DLR to avoid the huge spread. You can of course wait for the trade to settle first and send them a request through online banking (it's hidden in the "other options" tab of the account under "transfer investments between accounts") to journal the shares over, if that's what floats your boat with the typical 3 business days delay.

Buying DYN6004 and 6005 went pretty smoothly. They don't show it when you search for it in the mutual fund section, but it does show up in the trade entry. Settles the next business day and they will send you a margin call if you forgot to fund the account.

I can't afford to buy cheap stuff. Therefore, I'm thirsty for deals on durable goods.

+2

Jan 20th, 2023 2:00 pm

#204

ADenariusSaved [OP]: Deal Addict; Jan 11, 2020; 3965 posts; 3267 upvotes; Torontois @ 宇宙中心

Jan 20th, 2023 2:00 pm

WHO wrote: ↑ Their commission-free ETFs are usually the higher MER version (for example if you have both a Vanguard and iShares ETFs tracking the same index, the one with the highest MER will be the free one) so, might be OK for someone starting out but, as soon as you have a significant amount, still much better to pay the commission and save the recurring higher MER eating at your total portfolio. Or, better yet, trade at another broker.

I've done NB at iTrade, this was the quickest NB I ever did. Make the purchase on CND side online, while you have them (trading desk) on the phone, then they will journal the shares LIVE to the US market, and as long as you sell it the same day on the US side, it will settle in USD funds. You do the trades yourself to avoid the huge trade desk commission, you just use them to journal the shares free of charge. The settlement amounts in the account will be out of whack in the meantime while you wait for both to settle, but it works perfectly. I did it with 2700 shares (FTS) rather than DLR to avoid the huge spread. You can of course wait for the trade to settle first and send them a request through online banking (it's hidden in the "other options" tab of the account under "transfer investments between accounts") to journal the shares over, if that's what floats your boat with the typical 3 business days delay.

Buying DYN6004 and 6005 went pretty smoothly. They don't show it when you search for it in the mutual fund section, but it does show up in the trade entry. Settles the next business day and they will send you a margin call if you forgot to fund the account.

Mmm margin calls. Haven't seen one of those in awhile lol...

I thought the XEQT/XGRO/XBAL/XCNS series was cheaper than the the VEQT/VGRO/VBAL/VCNS series? I would say that's what most people should use. Wish I just did that vs. going into stuff that got me margin called a few times. But yeah, I think you're right, because when they came out with the free ETF menu, I was joking with coworkers that they stuck us with the worst MER'ed shit and probably make it back on the kick-back. But they were one of the first to have a free menu?

Oh wow, that's pretty awesome about Norbert's Gambit, and the DLR/DLR.U must be on their free ETF list as well. But they'd screw you on trading commissions. My logic is, if it's "free", why not? I say "free", because I forgot about the $10,000 exemption.

Thanks for the awesome info!

HISA ETFs < 5.02% - no CDIC: https://forums.redflagdeals.com/high-in ... no-2574002
Bank ISAs < 4.25%? + CDIC: https://forums.redflagdeals.com/big-6-h ... es-2579841

+1

Jan 20th, 2023 9:17 pm

#205

frugal1: Deal Addict; Mar 30, 2009; 1213 posts; 774 upvotes

Jan 20th, 2023 9:17 pm

WHO wrote: ↑ I've done NB at iTrade, this was the quickest NB I ever did. Make the purchase on CND side online, while you have them (trading desk) on the phone, then they will journal the shares LIVE to the US market, and as long as you sell it the same day on the US side, it will settle in USD funds. You do the trades yourself to avoid the huge trade desk commission, you just use them to journal the shares free of charge. The settlement amounts in the account will be out of whack in the meantime while you wait for both to settle, but it works perfectly. I did it with 2700 shares (FTS) rather than DLR to avoid the huge spread. You can of course wait for the trade to settle first and send them a request through online banking (it's hidden in the "other options" tab of the account under "transfer investments between accounts") to journal the shares over, if that's what floats your boat with the typical 3 business days delay.

Great information!

+1

Jan 21st, 2023 10:33 am

#206

mike20002019: Jr. Member; Nov 26, 2019; 163 posts; 111 upvotes

Jan 21st, 2023 10:33 am

savemoresaveoften wrote: ↑ Actually think they pay out the interest after you sold, dont have to wait month end. Pls report back if that is the case and you rec 2 days worth of interest.
Thanks

You are right. They paid out the interest when I sold all my holding. The sell order confirmation document shows a little bit more than I bought a couple of days ago. The difference is the interest accrued for the days that I was holding.
The only thing that I am not sure is that what it will happen if a part of holding is sold. In my case, I sold all my holding. If not all the holding, I am guessing they will prorate the interest and give it to you.

+1

Jan 21st, 2023 10:37 am

#207

mike20002019: Jr. Member; Nov 26, 2019; 163 posts; 111 upvotes

Jan 21st, 2023 10:37 am

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.

savemoresaveoften wrote: ↑ Actually think they pay out the interest after you sold, dont have to wait month end. Pls report back if that is the case and you rec 2 days worth of interest.
Thanks

+1

Jan 21st, 2023 11:10 am

#208

adrian2: Deal Addict; Feb 2, 2007; 1036 posts; 1010 upvotes; GTA

Jan 21st, 2023 11:10 am

mike20002019 wrote: ↑ The only thing that I am not sure is that what it will happen if a part of holding is sold. In my case, I sold all my holding. If not all the holding, I am guessing they will prorate the interest and give it to you.

If your guess is that they "give it to you" at the date of the sale, that is incorrect. If you sell part of your holding, you will get exactly the amount that you asked for, not a penny more. The remaining holding will pay interest (usually reinvested) at the end of the month.
It's quite similar to what happens when you hold, say, $40k at the beginning of the month, and you buy an additional $20k mid-month - at the end of the month you'll get interest for 15 days x $40k + 15 days x $60k.

+2

Jan 21st, 2023 6:42 pm

#209

jbr439: Newbie; Jun 25, 2007; 83 posts; 41 upvotes; Vancouver

Jan 21st, 2023 6:42 pm

DYN6000 vs CIB237?
I presently have money in ATL5000. Thanks to this forum, I'll be selling it to buy something with a higher yield. I was going to buy DYN6000, but I've since been alerted to CIB237 (money market fund).
My question is: other than the fact that DYN6000 would be CDIC insured whereas CIB237 isn't, is there any reason to not go for the higher yield of CIB237?
FWIW, I don't put a whole lot of stock in the CDIC insurance of DYN6000 anyway, given that CIB237 is a CIBC fund, and the likelihood of CIBC getting into financial difficulties is slim to none, not to mention that it would be considered "too big to fail".

+1

Jan 22nd, 2023 7:26 am

#210

savemoresaveoften: Deal Addict; May 3, 2008; 2700 posts; 1758 upvotes; Markham

Jan 22nd, 2023 7:26 am

jbr439 wrote: ↑ DYN6000 vs CIB237?
I presently have money in ATL5000. Thanks to this forum, I'll be selling it to buy something with a higher yield. I was going to buy DYN6000, but I've since been alerted to CIB237 (money market fund).
My question is: other than the fact that DYN6000 would be CDIC insured whereas CIB237 isn't, is there any reason to not go for the higher yield of CIB237?
FWIW, I don't put a whole lot of stock in the CDIC insurance of DYN6000 anyway, given that CIB237 is a CIBC fund, and the likelihood of CIBC getting into financial difficulties is slim to none, not to mention that it would be considered "too big to fail".

Chances are you won’t lose 100% if the cib237 is in distress. But at the same time chances are cibc will NOT make it whole. A cibc mm fund is very different from bank itself. Don’t even think there is any implicit guarantee of any kind, in 2009, a few money market fund did lose some money, just not a lot.

The mm fund performance will be more volatile than the ISA, as mm invests into products with credit implication and thus the higher yield.

+1

Jan 22nd, 2023 8:11 am

#211

adrian2: Deal Addict; Feb 2, 2007; 1036 posts; 1010 upvotes; GTA

Jan 22nd, 2023 8:11 am

savemoresaveoften wrote: ↑ Chances are you won’t lose 100% if the cib237 is in distress. But at the same time chances are cibc will NOT make it whole. A cibc mm fund is very different from bank itself. Don’t even think there is any implicit guarantee of any kind, in 2009, a few money market fund did lose some money, just not a lot.

No Canadian money market fund has ever lost money.
Not in 2009, not at any time.

+1

Jan 22nd, 2023 9:03 am

#212

savemoresaveoften: Deal Addict; May 3, 2008; 2700 posts; 1758 upvotes; Markham

Jan 22nd, 2023 9:03 am

adrian2 wrote: ↑ No Canadian money market fund has ever lost money.
Not in 2009, not at any time.

OP asked about money market fund…. What you said is not wrong either. I am also correct to say some mm fund broke the buck in 2009…
What has / has not happened in the past does not predict the future….

+1

Jan 22nd, 2023 7:10 pm

#213

luking: Sr. Member; Mar 6, 2010; 816 posts; 333 upvotes; Brampton

Jan 22nd, 2023 7:10 pm

in NBDB, i am using NBC100 but it pays just 3.80%
Has anyone found any higher paying option in NBDB?

+1

Jan 22nd, 2023 7:23 pm

#214

EDL67134234: Deal Addict; Feb 10, 2018; 1756 posts; 1171 upvotes

Jan 22nd, 2023 7:23 pm

luking wrote: ↑ in NBDB, i am using NBC100 but it pays just 3.80%
Has anyone found any higher paying option in NBDB?

NBC200 at 4.05%

+1

Jan 22nd, 2023 10:49 pm

#215

mcu: Member; Sep 8, 2010; 381 posts; 123 upvotes; Chambly

Jan 22nd, 2023 10:49 pm

I was going to put some USD cash into HSUV.U after reading a post here, but just saw that They are not taking anymore orders. Any other equivalent ETF that is considered a capital gain for taxes and pays well on USD funds?

+1

Jan 22nd, 2023 10:56 pm

#216

amplified: Deal Addict; Oct 13, 2006; 2792 posts; 1256 upvotes; Burnaby

Jan 22nd, 2023 10:56 pm

luking wrote: ↑ in NBDB, i am using NBC100 but it pays just 3.80%
Has anyone found any higher paying option in NBDB?

Buy the Scotia one DYN6000

+2

Jan 22nd, 2023 10:56 pm

#217

amplified: Deal Addict; Oct 13, 2006; 2792 posts; 1256 upvotes; Burnaby

Jan 22nd, 2023 10:56 pm

EDL67134234 wrote: ↑ NBC200 at 4.05%

I don't think you can buy it as a retail investor. Can you call in and buy it?

+1

Jan 23rd, 2023 12:36 am

#218

digitalsky: Member; May 31, 2007; 201 posts; 10 upvotes

Jan 23rd, 2023 12:36 am

Optimizer88 wrote: ↑ HSBC Investdirect does not change any commission to purchase or sell DYN6000 (or any of the other ISAs that they offer). Additionally, with DYN6000 it is actually 4.25%-.15% which ends up paying you the 4.1% interest.

Can you please confirm that I can buy DYN6000 from Investdirect and that it's commission-free buy and sell? Is DYN6004 also available or is it iTrade only? I want to buy these in my RRSP/TFSA accounts but they are with IBKR. I'll need to either create account with HSBC or iTrade to get DYN600x, just trying to figure out how much fee it takes to transfer cash from TFSA/RRSP from IBKR to another brokerage.

Last edited by digitalsky on Jan 23rd, 2023 12:54 am, edited 1 time in total.

+1

Jan 23rd, 2023 12:41 am

#219

ADenariusSaved [OP]: Deal Addict; Jan 11, 2020; 3965 posts; 3267 upvotes; Torontois @ 宇宙中心

Jan 23rd, 2023 12:41 am

mcu wrote: ↑ I was going to put some USD cash into HSUV.U after reading a post here, but just saw that They are not taking anymore orders. Any other equivalent ETF that is considered a capital gain for taxes and pays well on USD funds?

The exchange is taking orders, but Horizons is not producing any new share units. So as a result, you will pay a premium or a discount as people always need to load/offload these ETFs, in these times, you're definitely paying a premium lol. Same setup as HSAV. How much are you willing to pay in premium to dodge taxes and/or to stick it to the man? Buy them before the next Fed hike lol...

HISA ETFs < 5.02% - no CDIC: https://forums.redflagdeals.com/high-in ... no-2574002
Bank ISAs < 4.25%? + CDIC: https://forums.redflagdeals.com/big-6-h ... es-2579841

Jan 23rd, 2023 12:45 am

#220

ADenariusSaved [OP]: Deal Addict; Jan 11, 2020; 3965 posts; 3267 upvotes; Torontois @ 宇宙中心

Jan 23rd, 2023 12:45 am

digitalsky wrote: ↑ Can you please confirm that I can buy DYN6000 from Investdirect and that it's commission-free buy and sell? Is DYN6004 also available and or is it iTrade only? I want to buy these in my RRSP/TFSA accounts but they are with IBKR. I'll need to either create account with HSBC or iTrade to get DYN600x, just trying to figure out how much fee it takes to transfer cash from TFSA/RRSP from IBKR to another brokerage.

I'll check IBKR if I can remember my password...

Edit: I didn't find a Mutual Fund section unfortunately. But I did find a new bitchin' Pre-paid MC.

HISA ETFs < 5.02% - no CDIC: https://forums.redflagdeals.com/high-in ... no-2574002
Bank ISAs < 4.25%? + CDIC: https://forums.redflagdeals.com/big-6-h ... es-2579841

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