Every now and then, I check the HISA chart and open an account with whoever the leader is, then move my spare money over to them. Anybody else do this? | General comparisons | Discussion forum

There is a fault with having so many accounts. Every account must be made/kept active. Some are annually and some bi-annually. If they fall dormant or inactive, you may face penalty fees for maintenance. 🙂

HermanH said
There is a fault with having so many accounts. Every account must be made/kept active. Some are annually and some bi-annually. If they fall dormant or inactive, you may face penalty fees for maintenance. 🙂  

I put quarterly calendar reminder for myself, to login to each of my accounts and transfer few dollars between those that I am not using on a regular basis.

Logging into each account once every 3 months is not a big deal. When it gets too annoying because of too many of them, I'll be closing the most unused ones.

I do check HISA regularly and also go for highest interest paying accounts, but I exclude credit unions. My personal preference.

I did that for a while but my wife was complaining that I was making things overly complicated in the event she needed to take over the cash management responsibilities.

So I am now keeping it between Tangerine and Hubert.

I have been with Tangerine for years. Their rates have been mediocre at best in recent years but they frequently have relatively good special rate offers on new funds for 3-6 months.

I'm presently on one at 1.5% through October. So, near October end, the $ will go back to Hubert.

Having a proliferation of accounts would be a nightmare for a POA should they have to take over the financial and legal affairs of a person, and ultimately an Executor albeit the latter is a 'one off' event, i.e. account closure.

Over the past 20 years, I have had accounts at various online banks but when it is time to move on, I have closed them after a year or two of dormancy. My general rule of thumb is 2 such accounts, and currently those are LBC Digital and EQ Bank. Over the years I have closed Tangerine (ING), PC Financial, Simplii, Motive, and Peoples. I have no interest in promo games other than short term GICs EQ and/or LBC might have.

0.1% difference on $100k is $100/yr before tax. That is one nice restaurant dinner per year for a couple. Not worthy of consideration to open/close accounts.

Wow ...

As I said earlier, I don't chase HISA rates as much anymore, just for complexity. You should also keep in mind that your interest is likely 0 while $ are moving between institutions.

On CC's ...

My wife has her BMO MC. She's been with BMO since the 70's and there's no moving her.

I have my TD Visa.I've been with TD since the 70's and there's no moving me.

I had a Tangerine MC for about 12 months but it got "violated" 3 times. I cancelled that.

We now use PC MC for groceries. With PC Optimum, that's been worth about $1000/year of Cash back since 2018; tracking to about $1300-1400 in 2021. That's on groceries for 2 seniors at Loblaws, No Frills and Costco ...

I've never closed a HISA account, got lots though some sit empty for long periods. I don't want to go through the hassle of opening one again if their rate becomes attractive again, e.g. Canadian Tire bank was useless for years & years until a year or so ago it pretty much topped the list for a while. For some I just buy a 1-year gic for their minimum amount and have it deposited to the HISA when it comes due and then I'll just buy another 1-year gic, keeps the accounts alive.

Not worried about executor, etc, I've left detailed info, if they're too lazy to do what it takes to get at it that's ok with (the non-existent) me.

If/when I notice I'm losing the ability to keep track of things I'll simplify, close accounts, etc. And if I die before then my executor is also a beneficiary so if it's too much of a headache can choose whether or not to root out every last dollar or just leave immaterial amounts for the fi to appropriate after the requisite time period. (Also I believe an executor is allowed reasonable compensation for their time, so if it takes excessive time they can bill the estate for it.)

Re executor and POA, totally agree these are thankless tasks, best left to those who enjoy managing others' finances.

Loonie said
The last time I was involved with an estate, the funeral director charged a fee for every death certificate beyond the first few (I think 5). I think it was $5 each. That alone would make it pointless to pursue Bill's penny accounts.  

Interestingly, I was the executor for my mother's estate in 2020 and used very few original death certificates. BMO made a photocopy of an original as well as a photocopy of the will. Tangerine accepted a scanned copy of the death certificate as did many other institutions. And I was told I could have as many as I wanted by the funeral home. I guess it just depends.

Executors use Statements of Death that are issued by funeral homes in most, if not all, jurisdictions. Actual death certificates are only issued by provincial Departments of Vital Statistics (or equivalent) and they take months to get. Funeral homes can churn Statements of Death out by the dozen. We didn't pay for any of the several we used in 2015 with my mother's death.

It was The Simple Alternative, Pickering (I believe it's considered a no-frills funeral home) that offered as many free Statements of Death as I wanted.