What is the best HISA for large amounts $1 million++ | General comparisons | Discussion forum

montrealdeals said

What account has the highest interest rate for larger deposits
over $1 million?  

All those ⬆ eggs in One basket ❓❗

Dean

pooreva said
…I might be out of touch, but never heard FI will limit deposit on its saving account. They want our money, don't they?

EQ Bank limits the balance on their Savings Plus Account to either $500,000 or $200,000, depending on when one signed up with them.

No, they don't want our money, especially money that they pay 1.7% or 2% for.

Tangerine Bank is now owned by Bank of Nova Scotia. If needed, Tangerine Bank can ask its parent for money. The parent, Bank of Nova Scotia, has a DBRS debt rating of AA. That high rating allows it to issue short term notes and bankers acceptances for around ¼% per annum. If the parent were to offer 0.75%, the pension funds and institutional investors would just pile in!

Hubble, you get a new promo rate at Tangerine when you call before the end of your present promo term? What's the number and name of the person you call? I've always been told to call back the day or day after my present promo expires. For some years now I've not been turned down, though I never threaten to move my money or threaten anything for that matter, I make sure to introduce zero negative sentiment to the conversation. The customer rep usually has to go consult with someone, that usually goes very quick, so my impression based on the fact I'm treated the same every time is there's a rating for each customer re how badly they want to retain you. Just a feeling.

Bill...
I have done it the way I suggested earlier, for years now. I am not at liberty to offer any names or numbers...but I do talk to the same person every time I call. I also never threaten to move my money. Clearly they are aware the money would find a new home if, in fact, they decided not to offer a competitive rate. I do not tell them much about where the funds might go in that circumstance and I do not link any other HISA FI's in my transfer list other than the BNS, my main big 5 bank. My other HISA accounts are linked to BNS and I pull from there rather than move money around from HISA to HISA. Tangerine has no idea of who else I might be dealing with....if by some chance it should form part of an analysis. My contact also has to go up the chain to get approvals....or at least that is the impression get when they put me on hold for that minute or so.

Worth noting I questioned my last approval in mid August. Most on this site were getting either 1.8% or 1.6% at that time...They would only offer me 1.6% and offered that the lower rate offer was in part due to the large amount of money. They also always close the call with...."If something better comes up I'll be sure to contact you"....that has never happened.

OP has not asked about safety, only about rate and size of account.
I find it hard to imagine depositing that much money with little insurance, no matter what DBRS says. It's just a little bit of extra work to spread it around and make sure it is all insured.

Occasionally, I do keep a large amount in a Big Bank, but only for short periods. Right now I have a lot at CIBC because they are paying me 2.35%, but that won't last.

Seems to me you have six things to consider:

1. Rate.
2. Maximum deposit.
3. Insurance limits.
4. Stability of rate.
5. Access. Some FIs have withdrawal limits which would be quite puny for an account of this size. It can take time for transfers to go through and to clear. Can you get a companion chequing account to make it easier to withdraw a large amount?
6. How often you are willing to move your money around.

The Facts:
You are not going to find one account that consistently has the best rate.
2. CDIC will only insure 100K per account holder in non-registered funds. You may be able to double up by using Oaken (200K) or by opening joint accounts with others.
In Ontario, credit union insurance is 250K.
In Manitoba, credit union insurance is unlimited. Also, I think it is unlimited in BC, but you should check if this matters to you. Watch out for a few federally insured credit unions like Coast Capital.
At various times, some FIs offer higher rates for higher deposits, and sometimes they offer lower rates for higher deposits. A good example of this is Steinbach credit union in MB. Sometimes their highest rates are for largest amounts but other times for smallest.
You need to monitor rates regularly. They do and will change, usually without notice.
Some FIs will not serve residents of Quebec. Hubert is one. Check the Comparison Chart on this site for others or contact them directly. I point this out because your name suggests you live in Quebec.

Action:
If it were me, and i didn't care much about insurance, I'd probably put it in Motive and EQ, especially if I lived in BC.
If I cared somewhat about insurance, I'd go with one of the MB credit unions, probably Steinbach or Rosenort because they have graduated rates. Steinbach can be a nuisance because they don't give out the interest monthly and it's hard to know where you are at, but they are quite large and have no limits. Rosenort may have limits; not sure.
If I cared a lot about insurance, it would depend somewhat on where I lived. I would spread it around and be prepared to move it periodically. This is what I in fact do, because I do care about insurance limits and I do find it worthwhile to move money around for best rates.

My experience with Tangerine has discouraged me from continuing to play the game with them. You would certainly have to be prepared to renegotiate with them every few months, and that is likely to take about 2 hours and may or may not be successful. Everyone's experience with them is different and unpredictable. Everyone who succeeds thinks they have the ideal formula, but then others find it doesn't work for them.

Canadian Tire Bank would be fine as long as you don't care about insurance and are prepared to move your money out when the rate drops as it likely will. Historically, they have not offered great HISA rates often.

It's very unlikely that there will ever be any one place that meets all your needs all the time.

Loonie ...couldn't agree more...What works for some does not work for all.

CDIC coverage is my main worry and as a result of this dialogue I may start to investigate MB credit unions as I was unaware of the 100% coverage. Any advice on upper limits would be appreciated. Often you have to work your way thru an application in order to access the account T&C's only to find out they have a promo deposit limit.

My main consideration in chasing rates is ease of opening the new account. If I can't open an account in one sitting at my computer, I won't. If I have to mail something ...or go thru the identity bs at a post office....or wait for something in the mail ...that is a deal breaker no matter what the offer is. Opening an account in some cases from what I can gather from this forum , can take weeks. In this day and age that is totally unacceptable.

Really good post there Loonie. I pretty well agree with everything you say.

To Bill: I guess my life is fairly "sweet" as a senior. But from what I understand, opening an account with Canadian Tire, I will have to fill out their on-line form, and send that along with a cheque by mail. That isn't the same as opening many on-line banks. So yes, for me, at my age it is "work". Regardless though, I just may phone them tomorrow to get confirmation on that procedure.

I'm hoping EQ comes out with something good re their up and coming TFSA's. They might even give a special rate for all new GIC's for the big event.

Right now, I am only getting 1.6% at Tangerine til March. Next week when I have a large GIC maturing at Coast Capital, I may phone CIBC to see if they can give me a reasonable rate in my HISA. My agent there is really accommodating and he does everything he can on a request.