Brokerage investment savings accounts | Page 30 | General comparisons | Discussion forum

Lodown said

When rates are falling - like now, MMFs can be found that always outperform HISAs. The reason being MMFs invest in short term deposits with 3-12 month future end dates while HISAs react to daily interest rate changes.  

It is not necessarily true that HISAs and ISAs react to daily interest changes. These are deposit rates set by the deposit institution. They may, or may not, react quickly to a BoC interest rate change, but generally do within 5-15 days. ISA rates, with a few exceptions, have not changed since ~August last year.

I do agree though that in a falling interest rate regime, MMF rates will almost certainly lag drops in ISA and/or HISA rates. Whether it is material or not, I doubt it because MMFs don't hold very much beyond 30-90 day paper because of exposure should they get it wrong.

hwyc said
Hm. Looks like the Renaissance fund code changed recently. It was ATL5000 in #530 dated Jan 11, 2024. Then it is ATL5070 in #553 dated Feb 17, 2024 & thereafter.

Now this ... I see a promotional rate of 0.45% on eligible new deposit, effective February 12, 2024, on their product page. Wonder anyone benefited already? Too bad TDDI only offer TD HISA   

I bought the ATL5075 USD and have got the pleasant surprise of a bonus. I didn't even know about it. Norman1 clarified it for me.

AltaRed said
I am not sure what you mean by 'switch'. You have to first sell DYN6000 and then buy ATL5070. The orders should be able to be placed on a weekend though they will not be 'confirmed' until COB on Monday, and both will settle by COB Tuesday.  

For mutual funds, "switch" is an action that's available in addition to buy / sell. It allows to switch from one mutual fund to another through a single trade request, rather than two: sell + buy orders (though the result is the same, i.e. source fund is sold, than target fund is bought w/o the wait to settle the sale).

MyUsername said

I tried for both non-reg and reg accounts - same error.

Apparently CIBC-IE only allow the "switch" action between funds that are in the same load class. DYN6000 is a no-load fund, while ATL5070 is a front-end one.  

These are not mutual funds. They are deposit accounts that use the mutual fund FundSERV system to enable the transactions. Even if they were mutual funds, they are also not in the same fund family (if that matters).

I can't imagine any brokerage allowing the use of 'switch' in ISAs.

PassiveandWary said

TDDI allows you to initiate a switch order if it's between two of their in-house ISAs. It's mostly for reallocating amounts to stay within CDIC limits. Not sure if it works for ISAs from different providers.  

Okay..sure. That is what I meant 'in the same family', i.e. the range of TDBxxxx ISAs. I probably could have said that better.

I just learned of the General Bank of Canada ISA in another thread (GBH100 Class A @ 4.75%; GBH200 Class F @ 5.00%). Any reason they are not included in the list?

CDIC limits are easily dealt with by spreading ISAs around but I wouldn't think twice about having 7 figures in ISAs with one of the big 5 banks like CIBC, RY, etc. It is a red herring.

Brokerages have $1M of CIPF protection against brokerage bankruptcy, fraud and other such risks that could result in loss of client assets. Again, I would not worry about $1M CIPF limits with any of the big bank brokerages. They have far too much to lose reputationally to let their brokerage divisions go rogue/bankrupt, etc..... BUT I would never have more than $1M in an independent like Questrade that does not have reputational pressures. The principals of such private ventures just move on to their next adventure.

I have been with Questrade for quite some time. Very sound business and very strong products. Actually the big banks should fear Questrade.
My question was not fearing about Questrade, I wanted to know when we buy ISA from a third party like CIBC-ATL on Questrade, is it covered by CIBC or Questrade. Will it come under the $1M CIPF limit of the Brokerage?

Not saying Questrade is not well run or not solid, but I dont have the behind the scene knowledge to say so and vouch for them like some here. An FI always look healthy until it isnt. And 1 week is all it takes for one to fold. History shows lots of example, may be not in Canada. But then assume Canada FIs are safer is also based on some non-proprietory info. You simple dont know what you dont know.

AltaRed said
The value of the asset itself (the ISA) is CDIC insured by CIBC in the event CIBC goes insolvent. Whether the asset is stolen or otherwise sucked up in part or in whole as part of a bankruptcy by the brokerage is covered (with all other assets like stocks in the account) by CIPF insurance.
  

Thanks AltaRed. Very Helpful.
So in case the brokerage becomes insolvent what happens to the ISAs with CIBC? Assume the assets are under $1M at the brokerage.
This is Questrade's statement on their website for Investor Protection(besides being a CIPF member):
"We go above and beyond to protect your account with an additional $10 million in private insurance."