Anyone have an opinion on Home Trust? | General comparisons | Discussion forum

NorthernRaven said

Just some notes, they don't seem to have a savings account, just GICs. Also, the one-year rate is 1.7%, but that's compounded annually. For monthly compounding (the way most daily interest HISAs effectively offer), the rate drops to 1.55%. You can get CDIC HISA rates of 1.9% (Peoples Trust), or up to 2% from the Manitoba CUs, and also better GIC rates (1-year seems to top out around 2.05%, but check who does what sort of compounding).

If you are going to the trouble of finding a new parking place anyway, Home Trust seems sort of "meh".

My theory is, over the years.....if a financial institution has the word TRUST in its name.....dont deal with them!

Thanks for the links, Yatti.

I thought I'd correct something, though, the Home Trust HISA (apparently they do offer a high-interest savings account) is not a Mutual Fund offering as it is fully CDIC insured and that is something Mutual Funds are definitely not. I think you may have been confused by the "fundserv code", which is probably used by deposit brokers and financial advisors/self-directed brokerage services to offer this product directly to their clients, of which Home Trust likely deals with primarily.

Interesting they use a separate domain name for high-interest savings accounts versus their GIC/term deposit website - must be for search engine optimization reasons! With this news, and because I'm assuming they offer online access either through a broker/financial advisor and possibly directly, I'd encourage Home Trust (along with Implicity Financial) to be added to the comparison chart. In short, they're higher than ING or PCF so they should be.

Cheers,
Doug

You're quite right, NorthernRaven, and they are not held in your own name directly as they are held in the name of your broker/deposit broker/financial intermediary in trust for your name in what is called a "nominee account". They are also most definitely not mutual funds.

That said, I would still be supportive of adding the Home Trust HISAs to the comparison chart if there is interest (no pun intended). I certainly see there's value. We include PCF and ING Direct Canada accounts and they are roughly on par with the "Big 5" banks and have been for over a year and a half.

I'd just recommend a new column that states "FIB" for "financial intermediary banking" and a link to a note in the footer that states what that means (see above).

Cheers,
Doug

I edited the original post.. So all money market funds and nominee cash accounts are cdic insured? For example Manulife offers a money market and isa account..

https://repsourcepublic.manulife.com/wps/wcm/connect/fa74448046a0a07ab649be1152a44cd6/inv_mmf_invsavingsfundsalesconcept.pdf?MOD=AJPERES&CACHEID=fa74448046a0a07ab649be1152a44cd6

It's hard to find an account or fund these days with decent returns.. There are so many of those cash nominee accounts however.. Might be worth a list on its own..

Yatti - "money market funds", while less volatile and while they try to maintain a constant Net Asset Value (NAV), there can be no assurances as such and they are mutual funds, which are not guaranteed by any deposit insurer.

While it's a nominee account, held through a broker, what determines the CDIC insurance is the product and if that product is held through an active CDIC member institution. CDIC eligible products (generally CAD savings accounts and GICs/term deposits with maturities less than 5 years) are insured even in a nominee account as they are "in trust for" you and trust deposits are insured separately since each nominee account the brokerage house holds is effectively in trust for a separate person. If you held more than one nominee account with the same brokerage house, then presumably standard CDIC deposit insurance maximums apply.

Cheers,
Doug