Brokerage investment savings accounts | Page 36 | General comparisons | Discussion forum

Since last update, National Bank, Royal Bank, and Manulife Bank reduced their rates:

Fritz23 said
I just found the following in TDs ISA fineprint: "Daily interest will be accrued beginning on the Business Day following the deposit in the TD ISA and ending on the Business Day on which the order to withdraw funds in the TD ISA is received from your Dealer."

Does this mean interest starting to accrue at T+2 (the day after settlement (T+1)) until trading day when units are sold?

Wording is a bit ambiguous as to whether day of "deposit" means the day of the transaction order or the day of the transaction settlement. Could just be highlighting the effect of paying interest on the opening account balance instead of the closing account balance:

The interest payable by the Bank on the TD ISA is calculated daily on the opening credit balance and paid monthly by way of credit to the TD ISA on the last Business Day of each month.

The Scotiabank ISA's have similar wording:

… Interest is calculated daily on the opening balance of the Account, excluding the date of purchase, and is payable monthly byway of credit to your Account on the last Friday of each month or, if the last Friday of any month is a holiday, on the immediately preceding business day. …

Since last update, B2B Bank, Equitable Bank, Home Trust, Renaissance, and ScotiaBank reduced their rates:

Since last update, rates have been stable:

People are expecting another ¼% drop to be announced on September 4. One-month treasury bills are now 4.30%, down from the 4.47% they were at on July 24, the Bank of Canada's previous rate announcement.

July CPI inflation is 2.5%, inside Bank of Canada's target 1% to 3% band. Economy is slowing. Employment demand is down. People are finding it isn't as easy as it was before to find a job or switch jobs.

Things are meeting Bank of Canada's conditions for another rate cut.