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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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[OP]
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Jan 11, 2020
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Torontois @ 宇宙中心
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...
Member
Dec 27, 2017
411 posts
300 upvotes
Ontario
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.
Deal Fanatic
Feb 17, 2007
6102 posts
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Mort Réal
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.
[OP]
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Jan 11, 2020
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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!
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Mar 30, 2009
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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!
Jr. Member
Nov 26, 2019
163 posts
111 upvotes
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.
Jr. Member
Nov 26, 2019
163 posts
111 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.
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.
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Feb 2, 2007
1036 posts
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GTA
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.
Newbie
Jun 25, 2007
83 posts
41 upvotes
Vancouver
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".
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May 3, 2008
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Markham
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.
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Feb 2, 2007
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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.
Deal Addict
May 3, 2008
2700 posts
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Markham
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….
Sr. Member
Mar 6, 2010
816 posts
333 upvotes
Brampton
in NBDB, i am using NBC100 but it pays just 3.80%
Has anyone found any higher paying option in NBDB?
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Feb 10, 2018
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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%
Member
Sep 8, 2010
381 posts
123 upvotes
Chambly
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?
Deal Addict
Oct 13, 2006
2792 posts
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Burnaby
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
Deal Addict
Oct 13, 2006
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Burnaby
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?
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May 31, 2007
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10 upvotes
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.
[OP]
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Jan 11, 2020
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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...
[OP]
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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.

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