$USD Svgs Acct Offer 2019 09 10 | Ideal Savings | Discussion forum

The very low rate on the first $5000 makes this very unattractive indeed.

Alternatives include 0.75% at Hubert, or 0.8% at Tangerine, on all US$ deposits. So if you just have a few thousand to deposit, forget Ideal.

https://ads.scotiabank.com/ADS/Download/942/en A series available in Scotia iTrade brokerage accounts. Bought and sold as mutual funds, but are actually deposit accounts. CDIC insured to CDIC limits.

Also available as DYN5000 (CAD) and DYN5001 (USD).

The difference is the issuer.

DYN5000 is issued by CDIC member ADS Canadian Bank. DYN6000 is issued by CDIC member Bank of Nova Scotia.

AltaRed said
https://ads.scotiabank.com/ADS/Download/942/en A series available in Scotia iTrade brokerage accounts. Bought and sold as mutual funds, but are actually deposit accounts. CDIC insured to CDIC limits.

Also available as DYN5000 (CAD) and DYN5001 (USD).  

Thank you for this info.

One thing I noticed after reading the product knowledge page is that it states "Offered exclusively through Advisors", so I'm wondering if I don't have an investment account with Scotia and I only want to open this account to park some USD cash I have, will Scotia allow it?

moneyhelp said

Thank you for this info.

One thing I noticed after reading the product knowledge page is that it states "Offered exclusively through Advisors", so I'm wondering if I don't have an investment account with Scotia and I only want to open this account to park some USD cash I have, will Scotia allow it?  

That's just saying that it's only available through an independent network of broker dealing firms. If you have a self-directed discount brokerage account (i.e., Scotia iTRADE), that counts.

I have held both DYN5000 (ADS Canadian Bank) and DYN6000 (Bank of Nova Scotia) in multiple Scotia iTRADE accounts, registered and non-registered, since 2014.

Some points to remember:
- Interest is calculated on the daily closing balance, but accrues and pays monthly. So, remember that if you sell your entire holding, leaving no units, part way through the month, you forfeit that month's interest payment (since you no longer hold anything);
- You "deposit" or "withdraw" funds via the "Trade" screen of Scotia iTRADE's Scotia OnLine interface. Each unit is valued at $1.00 and the transaction is processed at end of day and settles the following business day; and,
- Despite having a "fund code," unlike some mutual funds that hold principally these HISAs, this is an investment savings account held beneficially for you by your brokerage firm or trust company through CDS. As such, redemptions are not subject to broker-dealer short-term or frequent trading fees as may be the case with mutual funds/ETFs that hold HISAs like PSA and CSAV.

Cheers,
Doug

There isn't supposed to be loss of partial month interest with the ScotiaBank ADS ISA's.

According to the ADS FAQ, interest is also paid at the time of redemption:

How is interest calculated and paid?

Interest is calculated daily on the opening balance of the account, excluding the date of purchase and is paid monthly on the last Friday of each month, or if the last Friday of any month is a holiday, on the immediately preceding business day. … Interest is calculated daily and credited to the ISA account monthly or at the time of withdrawal or transfer. For partial months, interest is prorated for the number of days the funds are invested.

Every brokerage has their in-house ISAs, or access to a pseudo in-house ISA. Both USD and CAD. These have been around for quite a long time and mostly fall into line with similar/same interest rates.