ADD CI Financial to HISA Comparison chart | Site suggestions | Discussion forum

Link? Fees, transfer limits, different account types? Account verification process...

OP is new user. If related to CI, need to disclose.

Thanks to Norman pointing out its anything but a HISA.

savemoresaveoften said
OP is new user. If related to CI, need to disclose.

Thanks to Norman pointing out its anything but a HISA.  

Very unlikely they're related to CI Financial. I suspect it is just a case of the OP being new to the forums.

Welcome to the forum, OP!

We don't add HISAs to the comparison chart (at the top of the page) that are held in either self-directed discount or full service brokerage accounts or with registered deposit brokers. The eligibility criteria are listed below the comparison chart's webpage.

Instead, Norman1, AltaRed, myself and others try and regularly update users with brokerage ISA (investment savings accounts) rates, most recently with Norman1's thread here (permalink).

In the case of CI Financial, it's functionally similar to a brokerage account ISA, but is actually a HISA ETF. They offer enhanced (i.e., same-day) trading liquidiy, but do offer marginally higher risks. The fact deposit insurance in the HISA ETFs is limited collectively to $100,000 per underlying cash holding in the ETF isn't the higher risk; all holdings are with Big Five or Big Six banks, in some cases, so it's similar to exceeding one's CDIC limit with a Big Five/Six bank. The higher risk and cost are the bid/ask spread (usually about a penny per unit) and the ability or inability of the ETF issuer to maintain a constant $50.00 NAVPU of the ETF and for the market maker to have that NAVPU closely match the market value per unit of the fund.

You should consider the Scotiabank ISA, paying 3.80% (Series F), and available through Scotia iTRADE. Multiple issuers are available (Bank of Nova Scotia, Bank of Nova Scotia Trust Company, Montreal Trust Company of Canada, Scotia Mortgage Corporation, and National Trust Inc.)

https://ads.scotiabank.com/product-description-Tiered

Cheers,
Doug

Norman1 said
I don't think it was the CI High Interest Savings ETF (CSAV) that was suggested.

I think it was the CI Direct Save account/product.  

That's interesting, then, because that is a product that is issued directly by the discount broker and may actually qualify for inclusion as a non-bank HISA, essentially. It doesn't trade through FundSERV (so may not be held in typical book-entry form; it's just the cash balances of a non-registered trading account, for which the broker pays interest). It's likely not CDIC insured, but is CIPF protected.

As long as it's not held in book-entry form, I'd be okay with adding it.

Cheers,
Doug

Loonie said
I don't think we should include anything that is not insured by either CDIC or provinicially regulated insurers (in the case of CUs).
CIPF is not the same thing.
If they want to function as a bank, then let them go through the regulatory process to become one.  

Well, it may not be ideal, but that can be asterisked and noted with caveats. We can also leave the deposit insurance column blank.

It can easily also be argued including Neo Financial, which is not a bank, goes against the spirit of the comparison chart. Its future of its HISA product is also uncertain with the closure of Wyth Financial. It's quite possible Equitable Bank will partner with them, but as was seen with Wyth, I suspect they will offboard existing clients and encourage them to open up new HISAs (on the Neo Financial platform) with new account numbers, etc., that'll be issued by Equitable Bank, rather than Concentra Bank.

Cheers,
Doug

Doug said

That's interesting, then, because that is a product that is issued directly by the discount broker and may actually qualify for inclusion as a non-bank HISA, essentially. It doesn't trade through FundSERV (so may not be held in typical book-entry form; it's just the cash balances of a non-registered trading account, for which the broker pays interest).…

CI Direct Save is not offered through their discount broker. It seems to be offered instead through their roboadvisor WealthBar Financial Services Inc., a registered portfolio manager.

Wealthbar is a manager and not an investment dealer. So, it is not a CIPF member and likely cannot hold the funds. Instead, the funds are placed into cash accounts with one or more of these three CIPF members:

1. CI Investment Services Inc.
2. Credential Qtrade Securities Inc.
3. National Bank Independent Network

It is not the same thing as a brokerage CDIC insured ISA. It really is an oddball offering and I wouldn't put it on the chart any more than I would put money market mutual funds or cash ETFs on the chart.