Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this9:32 pm
April 6, 2013
Offline
Rates up since last time. Was 3.25% to 3.90%. Now, 3.60% to 4.10%:
| ISA | Rate |
| Scotiabank Investment Savings Account, Series A (DYN6000) CAD | 4.10% |
| Manulife Bank Investment Savings Account (MIP510) CAD | 4.00% |
| BMO High Interest Savings Account (BMT104) CAD | 3.90% |
| Equitable High Interest Savings Account, Series A (EQB1000) CAD | 3.85% |
| Home Trust High Interest Savings Account, Class A (HOM100) | |
| RBC Investment Savings Account, Series A (RBF2010) CAD | 3.80% |
| TD Investment Savings Account, Series A (TDB8150) CAD | |
| Renaissance High Interest Savings Account, Series A (ATL5000) CAD | 3.65% |
| B2B Bank HIIA, Series A (BTB100) CAD | 3.60% |
3:07 am
September 21, 2022
Offline
Doug mentions above (post 94):
"...The one downside to them would be registered plan transfers whereby the transfer out fee is typically $125-150 per account. They will generally reimburse your transfer out fees when you transfer money in, if you're transferring in at least $15,000-25,000 per each account transfer. So bottom line, you will not want to "rate shop" in registered accounts and, with TFSAs, wait till December to manually withdraw your funds."
When do these regist.acc fees apply?
Would following 2 examples to answer my question be correct:
For example if U buy a Scotia ISA from within a Scotia RRSP brokerage account = no fee ;
...but if U buy the same Scotia ISA from let's say TD RRSP brokerage account = 125-150$ fee ??
Is this what Doug meant by not rate shop registered accounts and staying within ISA emitter as brokerage.acc used to avoid these xfer fees?
5:17 am
March 30, 2017
Offline
U can only buy the scotia one in ur Scotia acct only, same with TD account can only buy the TD version etc.
If u transfer account from one broker to another, u have to sell the fund as TD account can not hold a Scotia ISA HISA fund.
If an outside account is allowed to buy the Scotia ISA fund, investors will only put money in the highest yield fund only.
The $150 fee refers to when u move account only.
5:34 am
October 27, 2013
Offline
Agree with post #104. One can only buy Scotia in Scotia iTrade, TD in TDDI, etc. Transfer out of accounts ranges from $135-150 so one would not want to do that unless the receiving institution was willing to pick up the 'fee'.
There is also a fee to close accounts in most cases if, for example, one was to want to move funds out from a Scotia iTrade TFSA to another institution. The best way to do that would be to first transfer funds out of a Scotia iTrade TFSA to a Scotia chequing account and then transfer funds to a third party institution.
Accounts at brokerages are meant to be long(er) term investment accounts.
8:13 am
December 12, 2009
Offline
Miked said
Doug mentions above (post 94):"...The one downside to them would be registered plan transfers whereby the transfer out fee is typically $125-150 per account. They will generally reimburse your transfer out fees when you transfer money in, if you're transferring in at least $15,000-25,000 per each account transfer. So bottom line, you will not want to "rate shop" in registered accounts and, with TFSAs, wait till December to manually withdraw your funds."
When do these regist.acc fees apply?
Would following 2 examples to answer my question be correct:
For example if U buy a Scotia ISA from within a Scotia RRSP brokerage account = no fee ;
...but if U buy the same Scotia ISA from let's say TD RRSP brokerage account = 125-150$ fee ??
Is this what Doug meant by not rate shop registered accounts and staying within ISA emitter as brokerage.acc used to avoid these xfer fees?
I just mean, if the ISAs no longer lead, to transfer out of your brokerage account, you'll need to do a T2033 registered plan transfer, for which there's a fee. There's no fee to sell one ISA and buy another in the brokerage account. 🙂
Cheers,
Doug
8:16 am
December 12, 2009
Offline
Norman1 said
Rates up since last time. Was 3.25% to 3.90%. Now, 3.60% to 4.10%:
ISA Rate Scotiabank Investment Savings Account, Series A (DYN6000) CAD 4.10% Manulife Bank Investment Savings Account (MIP510) CAD 4.00% BMO High Interest Savings Account (BMT104) CAD 3.90% Equitable High Interest Savings Account, Series A (EQB1000) CAD 3.85% Home Trust High Interest Savings Account, Class A (HOM100) RBC Investment Savings Account, Series A (RBF2010) CAD 3.80% TD Investment Savings Account, Series A (TDB8150) CAD Renaissance High Interest Savings Account, Series A (ATL5000) CAD 3.65% B2B Bank HIIA, Series A (BTB100) CAD 3.60%
Sweet! 4.25% on the BNS family of ISAs Series F, then. 🙂
I recently decided to buy a currently under construction studio condo in Kelowna, so am hoping to maximize my interest earned on my large cash balance until I have to satisfy the remainder of the purchase price. 4.25% on my brokerage ISAs in mainly registered accounts, together with 4.75% at Tangerine helps significantly. If Tangerine doesn't offer me something comparable to what they're offering currently April 1st, I can easily transfer funds to Scotia iTRADE.
Cheers,
Doug
8:21 am
April 10, 2013
Offline
I was quite happy with these rates, like BMO's 3.9%, until I see them charging 8% for debit balances. For US debit balances it is 9.5%. The spread is enormous.
8:23 am
December 12, 2009
Offline
savemoresaveoften said
U can only buy the scotia one in ur Scotia acct only, same with TD account can only buy the TD version etc.
If u transfer account from one broker to another, u have to sell the fund as TD account can not hold a Scotia ISA HISA fund.If an outside account is allowed to buy the Scotia ISA fund, investors will only put money in the highest yield fund only.
The $150 fee refers to when u move account only.
AltaRed said
Agree with post #104. One can only buy Scotia in Scotia iTrade, TD in TDDI, etc. Transfer out of accounts ranges from $135-150 so one would not want to do that unless the receiving institution was willing to pick up the 'fee'.There is also a fee to close accounts in most cases if, for example, one was to want to move funds out from a Scotia iTrade TFSA to another institution. The best way to do that would be to first transfer funds out of a Scotia iTrade TFSA to a Scotia chequing account and then transfer funds to a third party institution.
Accounts at brokerages are meant to be long(er) term investment accounts.
Not sure if anyone's mentioned it, but there's also typically an annual administration fee if your or your household account balances (i.e., people with the same residential address, provided you haven't opted out to having your household balances aggregated for this purpose, of course) drops below $15-25,000. For example, Scotia iTRADE will charge an annual registered plan fee if your account equity for all your accounts and/or your household's drops below $25,000. They will charge a quarterly Low Activity Account Administration Fee of $25/quarter where the total value of your accounts drop's below $15,000 (I think?) and you do not hold a registered plan. (Note it's also possible to avoid the latter fee with account balances below $15,000 if you make commissionable trades per quarter at or above $25 in commissions.) It's easy to avoid these administrative fees, but if pulling all your money, it's something to be mindful of. 
Cheers,
Doug
9:02 am
April 6, 2013
Offline
Bob said
I was quite happy with these rates, like BMO's 3.9%, until I see them charging 8% for debit balances. For US debit balances it is 9.5%. The spread is enormous.
Those margin account borrowing rates are not out of line.
Bank of Montreal's variable rate open mortgage is currently 8.15%. Open loans that may be repaid any time, without penalty, have a premium built in the rate.
10:48 am
October 27, 2013
Offline
Indeed. Margin loans are also technically high(er) risk even if backed by account collateral. Remember PACE executives blew their business up with margin loans that got called.
10:52 am
December 12, 2009
Offline
AltaRed said
Indeed. Margin loans are also technically high(er) risk even if backed by account collateral. Remember PACE executives blew their business up with margin loans that got called.
And, more recently, Elon Musk has had to sell more of his Tesla stock, to cover the portion of his Twitter acquisition financed by Tesla stock-backed loans.
Cheers,
Doug
1:33 pm
April 10, 2013
Offline
Norman1 said
Rates up since last time. Was 3.25% to 3.90%. Now, 3.60% to 4.10%:
ISA Rate Scotiabank Investment Savings Account, Series A (DYN6000) CAD 4.10% Manulife Bank Investment Savings Account (MIP510) CAD 4.00% BMO High Interest Savings Account (BMT104) CAD 3.90% Equitable High Interest Savings Account, Series A (EQB1000) CAD 3.85% Home Trust High Interest Savings Account, Class A (HOM100) RBC Investment Savings Account, Series A (RBF2010) CAD 3.80% TD Investment Savings Account, Series A (TDB8150) CAD Renaissance High Interest Savings Account, Series A (ATL5000) CAD 3.65% B2B Bank HIIA, Series A (BTB100) CAD 3.60%
Is it possible to include National Bank's discount broker HISA (Altamira Cash Performer) in your next update? Currently paying 3.25%
11:48 am
November 3, 2022
Offline
I wonder whether CDIC insurance coverage limits apply to each fund code offered by the banks that sell ISA's through multiple fund codes, or whether all the fund codes offered by a banking "group" are covered by a single CDIC insurance limit?
For example, I note that Scotiabank sells USD ISA's under codes DYN6005 and DYN5005. If I was approaching the CDIC limit in one of these ISA's, would I be covered for another 100k in deposits held through the other ISA code?
12:28 pm
October 27, 2013
Offline
The general assumption is each would have separate CDIC insurance due to each being a separate CDIC member.
It is pretty clear DYN6005 and DYN5005 are separately insured because DYN6005 is from Bank of Nova Scotia and DYN5005 is from Bank of Nova Scotia Trust Company, each of which is a CDIC member per https://www.cdic.ca/your-coverage/list-of-member-institutions/
12:44 pm
December 12, 2009
Offline
AltaRed said
The general assumption is each would have separate CDIC insurance due to each being a separate CDIC member.It is pretty clear DYN6005 and DYN5005 are separately insured because DYN6005 is from Bank of Nova Scotia and DYN5005 is from Bank of Nova Scotia Trust Company, each of which is a CDIC member per https://www.cdic.ca/your-coverage/list-of-member-institutions/
To add to what AltaRed said, with holding ISAs across multiple currencies, each currency could have a separate fund code, but each may be the same issuer. In this case, if you held DYN6004 (BNS in CAD) and DYN6005 (BNS in USD), you would want to watch your positions, if concerned with going over your CDIC limit, as your CDIC limit of $100,000 applies to both of those together. Remember, CDIC insures USD deposits in CAD funds, and uses the Bank of Canada's noon foreign exchange rate, as a basis of calculating the combined CAD and USD deposit insurance limit. It would only do this, of course, on the valuation date in the event of a financial institution's failure, but if it concerns you, you should still be aware of it. 🙂
Cheers,
Doug
1:13 pm
November 3, 2022
Offline
Thanks for the advice on insurance implications of these different funds. I figure that since I'm paying for the insurance, implicitly, I might as well as take full advantage of it, which means picking the right combination of fund codes to put my savings into.
1:18 pm
December 12, 2009
Offline
Rail Baron said
Thanks for the advice on insurance implications of these different funds. I figure that since I'm paying for the insurance, implicitly, I might as well as take full advantage of it, which means picking the right combination of fund codes to put my savings into.
You're not really paying for deposit insurance, even implicitly. You might be surprised how little the federally-regulated financial institutions pay in deposit insurance premiums (it's in basis points, so less than a percent or, actually, less than 0.25-0.40% as a percentage of their total insured deposit book). Spread out over all their depositor (i.e., customer) base, I'd be surprised if the amount you'd be paying would amount to even a penny per depositor per year. In short, you probably pay more implicitly in deposit interest rounding errors than CDIC deposit insurance premiums. 😛
Still, if it gives you comfort, then it's well worth it for you to stay within your CDIC limits and brokerage ISAs are a great way to do that. 🙂
Cheers,
Doug
Footnote: As of CDIC's annual
report 2022, there were four (4) differential premium categories, with category 1 assigned to institutions of the lowest risk by the CDIC bank risk scorer/adjudicator and category 4 carrying the most risk.
For 2021-22, the basis points of insured deposits were as follows:
Category 1: 7.5 bps (0.0007%)
Category 2: 15 bps (0.0015%)
Category 3: 30 bps (0.0030%)
Category 4: 33.3 bps (0.0033%)
Cumulatively, based on total CDIC insured deposits, CDIC generated $$772 million in premium revenue, which averaged out to 7.5 bps of insured deposits.
There were 91 CDIC members in Category 1, 6 in Category 2, 3 in Category 3, and 0 in Category 4.
The formula the CDIC risk scorers/adjudicators used is public, but banks and CDIC employees are strictly prohibited by Regulation from making public the category to which a CDIC member is in.
2:50 pm
September 30, 2017
Offline
Hey Doug, I think it should read 91% of CDIC members in Category 1, ...
3:37 pm
November 3, 2022
Offline
Thanks for clarifying how little the banks pay for CDIC insurance.
While I may not be paying much for the CDIC insurance premium, the way I look at it, CDIC insured fixed income investments pay a lower rate of return than uninsured investments. So I'm paying the banks a premium for their insured funds, which is ok since I also hold bank stocks. But and I might as well get that insurance coverage, up to the statutory limits.
I assume this is why the banks issue their investment savings accounts through various subsidiaries, like Oaken does GICs and HISAs with Home Bank and Home Trust. But since I'm relatively new to ISA's I wanted to check with the collective wisdom of this community.
6:50 pm
March 30, 2017
Offline
Doug said
For 2021-22, the basis points of insured deposits were as follows:
Category 1: 7.5 bps (0.0007%)
Category 2: 15 bps (0.0015%)
Category 3: 30 bps (0.0030%)
Category 4: 33.3 bps (0.0033%)
7.5bps = 0.00075 0r 0.075%, not 0.00075%
Just remember 100bps = 1%
Please write your comments in the forum.