Brokerage investment savings accounts | Page 12 | General comparisons | Discussion forum

No increases at all from the 25 basis point increase? Booo hisss!

No capital gains in ISAs, it's all interest income.

DYN6000 4.35% (under $100K), 4.40% ($100K or more) !

TDB8150 increased to 4.05% today

Norman, BMT104 has now moved to 4.35%, probably sometime today Feb 1.

This has been discussed numerous times but.....

1. These ISAs are bought through the mutual fund system at brokerages with a T+1 settlement. That means an order placed today before cut off time of circa 1400EST will close (be filled) at the COB tomorrow, and earning interest as of 12:01am Wednesday in the case of a purchase, or available as cash in the event of a sale.

2. These are deposit accounts (like a bank account) so there is no MER per se. However, in most cases, these ISAs are sold as Series A which pays a trailer fee or 15bp or 25bp to the brokerage. So, for example, Series A DYN6000 at Scotia currently yields 4.35% to the customer net of a trailer fee of 15bp, while the equivalent Series F DYN6004 yields 4.5% to the customer net of a trailer fee of 0. Whether a customer can purchase Series F of any ISA at any given brokerage depends very much on the brokerage (like Questrade) and/or the issuer (like Scotia). I am not aware of any early redemption fees anywhere.

3. I have only ever received one T5 for annual interest paid per issuer (e.g. Scotia) per brokerage (e.g. Scotia iTrade) but there should be separate T5s if the same ISA was owned at two different brokerages.

4. You will need to ask National Bank as regards NBC100 but if I was guessing, I would suggest it is more difficult (and an administrative cost) issuing monthly interest through a brokerage. It should make no difference to you since if you really wanted too, you can simply sell some units of NBC100 every month to gain access to the interest. The point of these ISAs is for investment/savings, as in the name Investment Savings Account.

Bill said
Regarding point #4, I noticed in my Investor's Edge account that DYN5000 & 6000 both reinvested in additional units even though at time of purchase I'd selected pay the monthly interest into the account. For MIP510 & 710 the initial orders only worked if you selected reinvest option.

No big deal, as AltaRed indicated you just sell some units every month if you either want the interest or don't want to exceed CDIC limit.  

There is difference, I noticed someone talked about reinvestment will have a very complicated T3 form ? it is a nightmare to do tax return, caculating by myself for how much I earned? Not sure it is same for ISA