This article has 144 comments

  1. Pingback: Tweets that mention High Interest Savings Accounts at Discount Brokers | Canadian Capitalist --

  2. You’re right to be concerned with fees. Even if you have $10,000 in cash lying around, a year’s interest at the highest rate you mention, 0.7%, is only $70. It wouldn’t take much in the way of fees to eat this up.

  3. Sorry for the off topic comment folks.

    CC, since your migration how does one conduct a search of your past posts? The search function on the top right seems to be for the entire site and doesn’t even go back to topics from a few months ago.

    I was looking for this post and even a search for “Kevin O’leary” didn’t bring it up. Had to manually go back through the archives to find it. That’s another annoyance with the changeover, there are very few posts per archive page, wasting additonal time.

  4. Canadian Capitalist

    @GSP: Site Search and Archives are still to do. It is on my list of issues to solve but it’s just that I haven’t had much time to spend on coding in the past little while. I will get it done in the near future. Meanwhile, here are two ways to search:'leary

    Or like this one Google: kevin o’leary

    I know it is not ideal but please bear with me until I have a search solution.

  5. I am about to move my TD money market fund to either the Manulife Bank Investment Savings Account (MIP510) (0.70%) or the Renaissance High Interest Savings Account (ATL 5000) (0.70%), which one would be preferable? Would they have different MER that affect the actual yield?

    • Canadian Capitalist

      @Sunny: First check whether you’ll be paying any fees of any kind on any of these accounts. Ask if there are any early redemption fees. Weed out the accounts that charge you fees because as Michael pointed out, a single fee might wipe out your interest and even cost you money. I can’t stress this strongly enough. Please check and make sure there are no fees before putting money in these accounts.

      The interest rate published is this post is what you’ll earn on these accounts. These accounts pay a trailer to the dealer directly, not out of the interest you are paid. TDW told me that they don’t charge a fee on Renaissance (but please check again anyway). I don’t know if there is a fee for MIP510. If all things are equal, I can’t think of a reason why I would choose one over the other.

  6. It’s telling that a 0.7% interest savings account is considered “high interest”. These are tough times for fixed income investors.

  7. The Manulife fund does seem to pay a trailer to the dealer, even if that dealer is a discount broker. See slide number 5 in this presentation:

    The Manulife fund (MIP 510) is also available in an F-class version (MIP 610), but discount brokers don’t typically offer F-class funds. (They would rather collect the “advice fee” despite providing no advice.) I’m not clear whether the trailer fee comes out of the 0.7% or not. Can anyone help?

  8. Thanks for the reply. I did check that both the MIP510 and ATL5000 will not have any load/redemption fees or holding periods (did confirm over the phone with TD Waterhouse).

    When you say refer to the trailer fees paid to the dealer directly, that’s a totally separate fee that I won’t actually see then in my statement ? So assuming I can confirm that there will be no fees of any sort, then the pure difference is the posted interested rate difference?

    Seems like Renaissance had just updated their rate to 0.80% this morning!

  9. CC: Sorry, our posts crossed in the ether. Thanks for answering these questions.

  10. Thanks for the quick reply CC. That Google site specific search could come in handy.

    To everyone else out there, sorry for the off topic comments.

  11. If these are treated as regular “No Fee Funds” then one usually must hold them for a minimum period otherwise there is a penalty. For example BMO Investorline:
    “an early redemption fee of $43 ($35 for electronic orders) will be charged for funds held for less than 90 days.”

    I am going to confirm with BMO Investorline if these funds get any special treatment (which I doubt). If they don’t then using these for parking short-term cash would not make sense.

  12. for TDW, I have confirmed both the MIP and ATL have no minimum holding period, essentially like the TD money market fund- I suppose part of the down side is you always have to call in to buy or cash out.

  13. Hi,

    This is Joseph, who mentioned these funds yesterday and on this mention CC has posted about them today.

    I’ll just add a few things:

    1) These are bought and sold like mutual funds. That makes them liquid – they typically settle next day.
    2) They do not provide a return such as an ING, President’s choice, Canadian Tire high interest savings accounts BUT these are separate accounts and you need to transfer money back and forth between your investment account and these savings accounts. This can take days and so these accounts are not as liquid.
    3) So bank-based high interest savings accounts offer you a higher rate but lower liquidity.
    4) Believe it or not, money market mutual funds can and have actually provided negative returns because they invest in money market based securities which can lose money. So money market funds can be higher risk than saving account mutual funds. Especially in these very volatile and crisis based times.
    5) In general, these savings account mutual funds do not charge a redemption fee, they do not have a minimum holding period, and most brokers (@G including BMO Investorline) have no fees to buy and sell, even on early redemption. I often buy and sell these next day.
    6) In my opinion, these are best if your broker does not offer a higher interest rate for cash in accounts and you trade often. I trade daily and just take any remaining cash at end of day and buy these funds.
    7) If you don’t trade often, then a bank based savings account is better because it gives you a higher return. But then again, it will take a few days to transfer cash between investment and savings account(s).
    8) If I have no cash in account, and want to buy a security, I figure out the purchase cost of the security, I then sell an equal amount of one of these savings account mutual funds (SAMF), and then buy the security. The cash from the sale of the SAMF will be in the account before the cash for the purchase of the security is required.
    9) Each separate type of account is covered by CDIC for up to $100K – so you are insured for up to $100K for the SAMF in a margin account, and for the same SAMF in a registered account.

    *** As a disclaimer, the above information is based on my own research about a year ago with my own broker – do NOT take this info verbatim – things change, please check with your own broker and you can call each of these funds to confirm everything.

  14. Hi,

    This is Joseph, who mentioned these funds yesterday and on this mention CC has posted about them today.

    @ Sunny – I trade these electronically with my online discount broker – takes a minute and no need to call in to buy or cash out.

  15. Hi, me again.


    Are you gonna be fighting Anderson Silva? 🙂

  16. I find it so hilarious that we call 0.70% “high” interest. What’s “low” interest? And we pay taxes on that whopping 0.70%. Anybody know the annual inflation rate?

    Sort of like driving across town to save 1c on gas. Oh, these funny canucks!

    The brokerages, by the way, make a lot of money on the un-invested cash. More than the commissions. I bet the MER’s/fees on some of the funds above are higher than the interest they distribute.

  17. @joseph- do you mind if I ask you which online brokerage you use? Just like CC said previously, I can see the MIP, ATL etc but not sure if I can actually buy them online, and the phone reps have told me twice that they are phone orders only for TD Waterhouse.

  18. Hi me again 🙂

    @ Alex – Yes I agree they certainly are not high interest and since inflation is higher, I am losing money by investing in these. However, for me, the alternative is to let it sit in cash in my investing accounts in which I get even less, close to zero, or to transfer my money to a “higher” interest (not high, just higher 🙂 bank based savings account. But this takes too much time and so is not useful to me.

    @Sunny – I am with BMO – I buy these just like any other mutual fund – I called TD Waterhouse Discount Broker and they confirmed you can buy:

    Altamira Cash Performer
    Dundee C$ Investment Savings Account
    Manulife Bank Investment Savings Account

    They could not find
    ICICI Bank HIISA (IBN100): 0.65%

    • Open a savings/checking account in a foreign bank. Iranian Banks recently paid 20% interest.

  19. Note that I have previously bought and sold MIP510 (CAD) and MIP511 (US) through TD Waterhouse online brokerage without having to phone TDW. @Sunny – not sure why the rep is saying you need to call in.

  20. Both Altamira and Questrade do not charge any early redemption fee. Here is an email reponse I got from Altramira`:

    “Please also note that all management fees have already been discounted from our funds’ returns. In addition, you may purchase or redeem any of our funds at no cost whatsoever. There are no management fees in this account. “

  21. Canadian Capitalist

    @Alex: Interest rates are currently at all-time lows. That’s why “high-interest” accounts pay just 0.7% or so. But this low-rate environment may not last very long. Even when interest rates were higher, brokerages paid close to nothing on cash balances. Investors could earn some extra money on parked cash with these high-interest accounts instead of keeping it as cash.

    @Sunny: I was also told (twice) that these accounts can only be purchased via phone but when I mentioned that they are available as mutual funds, the CSRs were surprised. Looks like others have purchased through WebBroker, so it appears that TDW CSRs are just misinformed about these accounts.

    @Joseph: Thanks again for your comment. TD Waterhouse does not carry IBN100 either.

  22. “However, as reader Lorne pointed out, you could do better with an online bank such as Ally for non-registered accounts.”

    CC: above is a casual comment but … are you (now) “recommending” Ally Bank?

    I was interested in Ally a while ago, due to their rates and “straight talk” ad pitch – and given the fact that you can’t open a webpage or magazine without being inundated with their ads. Anyway, during my research of Ally it appeared to me that there is some cause for concern regarding the security of investing with Ally, since Resmor Trust and Ally are owned by GMAC Inc.(now Ally Financial Inc.). Readers should be aware that GMAC is using US government bail-out money from various sources to offer the best rates around. Which in turn is helping them raise “deposit” cash: “Ally Bank and ResMor Trust continue to contribute to GMAC’s funding flexibility through deposit growth”. (see summary of issues in web-links below)

    So what happens when the US Treasury decides to call the loans, or toss in the towel? What happens when all those new Ally customers race to cash-out their deposits?

    Resmor Trust is covered by CDIC but in reality what happens to customers’ deposits if/when a bank or trust company fails? Does the CDIC pay out directly to the trust company so they can cover all deposit withdrawals? Or do individual customers have to “apply” to the CDIC to have their lost deposits reimbursed? How long does it take? How long is a depositor left without their money?

    For myself, since I was looking for a place to park my $25K emergency fund I decided it wasn’t worth the risk and I decided to stick with banks with a proven track record (PC Financial/CIBC, ING Direct). Risk vs. return – not worth potentially standing in line at the CDIC for an extra $250 in interest per year.

    I’d be interested in your opinion and any research you’ve done on Ally.

    P.S. also a lot of negative reports regarding customer service (ironic):
    (US Ally Bank):

    Do you know of any similar customer feed-back sites for Canadian High Interest banks?

    See recent article for summary of concerns:
    “Ally (GMAC) Bank’s Bailout Deceptions” Friday, 07 May 2010

    And: “TARP Panel Finds Fault With GMAC Bailouts” Published: March 10, 2010

    Press releases NEW YORK (May 3, 2010)
    GMAC Financial Services Reports Preliminary First Quarter 2010 Financial Results: Reported first profitable quarter since fourth quarter 2008.
    Announces intention to rebrand GMAC Inc. to Ally Financial Inc. on May 10, 2010
    Deposits: Ally Bank and ResMor Trust continue to contribute to GMAC’s funding flexibility through deposit growth.

    • Canadian Capitalist

      @gazoo: I opened TFSA accounts with Ally early this year. So far, I have no complaints with opening an account, transferring money or interest deposits. I’m writing about this on Monday. Can we hold off on the discussion until then? Thanks.

  23. CC: cool, thanks.
    I found this site after commenting: looks like a good summary site.

  24. Pingback: Canadian Personal Finance Blog » Blog Archive » Random Thoughts: RDSP Week

  25. Peopletrust in B.C. beats all canadian rates with 100% safety.
    You can link an account for next day access with zero charges!

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  28. Received response from BMO Investorline:

    “You may certainly purchase online, fund ATL5000; Renaissance High Interest Savings Account, Class A. There is no fee to purchase the fund; however, an early 90 day redemption fee may apply. The minimum purchase amount is $25,000/ subsequent buys of $500.”

    Notice the wording “may apply”. I really would love to get a direct answer from them..

  29. I guess this is a good option if you want to reach the 100k threshold with TDW and you are just parking your money waiting to buy.

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  31. Just a quick update. Manulife (MIP510) is now showing 0.80% yield, the same as the also recently updated rate at Renaissance (ATL5000). Altamira and Dundee are also now at 0.75%, seems like rates are moving up!

  32. Pingback: Home Mortgage Refinancing – The Secret of Home Mortgage Refinancing | Credit and Loan

  33. For TD Waterhouse customers, I just set up with them, including a savings and chequing account. I was able to do an online transfer from my free cash balance in the TDW trading account over to my TD chequing account. The amount showed up immediately in the chequing account, and I assume the same would be true for the savings account. TD’s savings account is currently paying 0.85% when the balance is over $5000 (0.25% if below), so this might be a better alternative than one of the high interest funds mentioned above, both for interest and speed of access.

    For moving money back out, the savings account has only 1 free debit per month. However, it allows free transfers to other TD savings and chequing accounts in your name, so I can transfer from savings to chequing, and then from chequing into the TDW account. I’m going to check with them whether direct transfers from the savings to TDW should be considered free as well, as it seems somewhat silly not to allow it. For people with other big-bank brokerage accounts you may be able to do something similar, but beware of those banks where the savings accounts have sucky interest or you can’t waive the transaction fees (BMO, I mean you!).

  34. hello re Resmor, i did look at them recently and the only issue at the time was time to transfer funds. at Manulife i can have funds transfered by next day at 6pm and i gather there is an issue that trust companies are using a different system. If you can get funds from Ally next day then please tell because they could only promise T+3 over the phone which is not fast enough.

    re Ally, GMAC and bailout funds, i am uncomfortable depositing with a lender that specializes in less that best credit quality however lets be careful and assume that GMAC Canada & GMAC US are different beasts. this is a trust supervised and subject to Canadian banking rules. perhaps there was Canadian bailout funds or loans etc but this is not affiliated with GMAC US and American bailouts, or is it?, i dont think so.

    • Canadian Capitalist

      @marv: Though I have an account with Ally, I haven’t transferred money into it. The only time I deposited money was via a cheque when opening the account.

      When looking at savings account, all I look for is CDIC coverage. It is impossible for us retail investors to analyze the financial stability of the banks just to park our money.

  35. Pingback: Hubert: A new online savings bank | Canadian Capitalist

  36. CC, great tip, thanks for the article !!

  37. Pingback: Hubert: A new online savings bank | MoneySense

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  39. @CC: where do you find the ticker symbols for these funds? I can’t seem to access RBF2011, even from RBCDI.

    • @Blitzkrieg: I found them at TD Waterhouse. It would be really bizarre if TD Waterhouse offers the RBC High Interest Savings Account and RBC Direct Investing doesn’t. Maybe you have to try calling RBC DI?

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  41. @CC: any idea why ICICI Bank HIISA (IBN100) is not available at TDW? I can get a quote for the other funds listed here but not this one. Also, it is interesting that TD now offers a similar product but too bad they can’t offer a better rate if bought in-house at TDW.

  42. @Michael: The last time I checked, TDW told me that IBN100 had to purchased by phoning in a buy order. I did not bother because I did not find the interest differential to be worth my time. I haven’t checked recently.

  43. Thx for updating with the TD options.

  44. Isn’t RBF2011 an F series version of RBF2010, paying the usual .25% trailer to the account holder? These typically aren’t available at discount brokers. Several other accounts on your list also have F series variants so this one kind of sticks out like a sore thumb.

    I do see it listed on TDW, has anyone been able to purchase it? I’d try but it would require me selling another product first.

    • @gsp: It does appear that RBF2011 is a F-series fund. I went through the screen until the final placement of the order and it appears TDW will sell it to me. But I can’t be sure until I actually place an order and I’m not sitting on the minimum initial investment required to go through the order. Also, I don’t want to call TDW and ask because they might discover a mistake and take it away!

  45. @CC: I think you mean RBF2011. I tried to purchase this and TDW accepted my order. However, since I don’t have a fee-based account the order was rejected and I got a call from the mutual funds dept indicating the reason. I was just surprised it allowed the order entry in the first place.

    • @Michael: Thanks for your comment! I’ll remove RBF2011 from the list and add a note that though the F-Series product appears in the TD Waterhouse list, it can only be purchased in fee-based accounts.

  46. Just now I phoned TDW to place an order for IBN100 for my RSP account- after the agent checked, was told that IBN100 is NOT eligible for RSP accounts, but okay for non-registered or TFSA accounts.

    Wonder if there is anything to do with the credit rating of ICIC bank- the agent says for some reason, the “government” isn’t allowing that to be in RSP accounts.

  47. I couldn’t seem to access any of the funds listed by CC through RBCDI except RBC’s own RBF2010. Previously, I had bought and still hold ATL5000, so I wondered what was going on. I sent them this message:

    “Hi, I hold the fund ATL5000 in one of my registered accounts. However, I no longer seem to be able to buy or sell units of this fund. What can I do?”

    Here is the reponse I received:

    “My name is Mathew and I’ll help you with your trade inquiry.

    Kindly be advised you will need to call in to sell your units of RENAISSANCE HIGH INTEREST SAVINGS ACCOUNT (5000).

    Consistent with how RBC products are offered at the RBC branch level, effective April 18th, 2011 all retail brokerage clients at RBC — including our RBC Direct Investing clients — will now only be offered our own competitive RBC products and solutions within High Interest Savings Accounts (HISAs) and Cashable GICs. While we will no longer be offering third-party solutions, existing client holdings in non-RBC HISAs and cashable GICs are not affected by this decision and can continue to be held in clients’ accounts. Automatic investment plans that were set up for non-RBC HISAs prior to April 18, 2011 will also remain in place. Additional purchases of non-RBC HISAs are no longer available but distributions will continue to be reinvested. Any clients who wish to liquidate any non-RBC HISA holdings can do so by contacting one of our RBC Direct Investing representatives at 1-800-769-2560. For more information on HISAs offered through Direct Investing please visit;

    We appreciate your business and thank you for choosing RBC Direct Investing.”

  48. @Sunny: It’s very strange that IBN100 would be eligible for TFSA accounts but not for RRSP accounts. Thanks for checking this.

    @Blitzkreig: Thanks for checking with RBC DI. It’s good to know that at least RBF2010 is available. At least the interest rate is comparable.

  49. @Canadian Capitalist: Yes, I found that odd too, although he was quite sure that RSP was not allowed and I did confirm again that non-registered accounts and TFSA accounts were okay.

    If anyone else had been able to place IBN100 thru TDW in a RSP account, please let us know.

  50. Sunny, the IBN product does not allow for RRSP inclusion at this time, no matter who your broker is. ICICI has said they are working on making the product RRSP compliant. How long that takes is anyone’s guess.

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  53. With the recently added TD Investment savings account, I have been able to buy the TDB 8150, 8155 and 8159, through my TDW WebBroker account, but not the TDB8157 (8158 is the F series equivalent), which is also listed on their own site. Has anyone had any success with that particular one?

    TD Investment Savings Account (TDPMC) – TDB8157
    TD Investment Savings Account (TDPMC) – F Series – TDB8158

  54. Just called TDW to try to purchase IBN100 (ICICI bank at 1.30%), was told that on the TDW system they don’t see a load or trailer fee but the rep said that the ICICI bank website says there is a 0.25% trailer fee on sale, just wonder if anyone can confirm that there is a fee to sell IBN100?

    the rate seems to be the best currently of all the other options at 1.30%

  55. Addition note:

    Note: I looked up the terms of the IBN100 and the document is here…ave_Sp_may.pdf

    In the fine print for series A (which is what IBN100 is): states
    Series A: 25 bps annualized calculated on the daily closing
    balance and paid out monthly to the Dealer.
    Series F: No commissions paid

    Fund Code:
    IBN 100 Series A – CAD
    IBN 101 Series F – CAD

    Does it mean that the 1.30% is AFTER the 25bps is calculated? or does it mean it’s 1.30% before this fee?

  56. @Sunny: You won’t be able to buy the F-series versions through TDW. One reader tried to but the order was rejected.

    The interest rate quoted is *after* the trailer. So an investor in IBN100 will receive 1.3%.

  57. sorry pls ignore the above post, typo

    @Canadian Capitalist: thanks for the answer.

    In addition, just called TDW and was told that RBF2001 no longer exists- if one pulls up the quote on RBF2001, the last date of the price was June 2011, so I was told that RBF2001 is now replaced RBF2010… is that correct?

  58. Quick update:

    2 more HISA now at 1.25%- seems to be the standard now (apart from ICICI at 1.30%), both upped their rate from 1.20% to 1.25% in the last week.

    Altamira Cash Performer (NBC100): 1.25%.
    Dundee C$ Investment Savings Account (DYN500): 1.25%

  59. People’s Trust and Canadian Direct Financial offer savings accounts paying 1.9% interest and cash TFSAs paying 3%.

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  61. Since ScotiaMcLeod has transformed to Itrade they changed the minimum buys on mutual funds and these mutual fund like savings accounts to $500. I think the minimum buy was $50 in the past. Very annoying. It takes a fairly long time to accumulate $500 in a $25000 TFSA with a 3% dividend yield. My money sits around not earning any interest until I get to the next $500 increment. They seem to want to try to keep money sitting around in the account earning nothing.

  62. I take it back. For the MIP510 the minimum buy is $100. I guess I was confused. The initial buy is $2000 though.

  63. @CC you may want to update this post again as disappointingly TD Waterhouse no longer allows brokerage customers to park their cash in competing ISA funds. The only option now is to buy the TD ISA. At least you would think they could offer a better rate if it is offered in-house? Are other institutions doing the same? The (rock bottom) rates for all these products is nearly the same today but this won’t necessarily be the case in the future and is a negative for the customer…

    • @MB: I agree that this post needs to be updated. I just did a test buy on ATL5000 and I get the error that only a sell order is allowed for the fund. The only options available are TDB8150, TDB8155 and TDB8159. I’ll have to check if other institutions are doing the same. The TD funds also pay 1.25% but I agree with you that it is a negative of choice is reduced for clients.

  64. I still think places like Achieva Financial area better bet. I don’t recall there being any limit and there are no fees. transfers take a couple of days once you’ve set things up. They pay 2% on their savings account. They are insured by the Deposit Guarantee Corp of Manitoba without the $100,000 limit. They also offer much better rates on GICs. I’ve moved a lot of my money from ING over the last year since ING no longer provides good rates.

  65. @Bob: I guess online banks such as Achieva Financial may make sense if you have cash in a taxable investment account. One can easily move money to or from the taxable account without tax implications. However, within registered accounts such as RRSPs, it is simply not practical to park cash in an online HISA. That’s when these funds come in handy. Thanks for your comment.

  66. In a TDW RRSP account, a significant advantage of using a HISA to hold spare cash is that you can enter buy orders up to the value of the HISA without having to enter a sell on the HISA (a nag pops up asking you to enter a sell order, but you don’t have to). So you can keep the cash in the HISA, making nominal interest, until up to 2 days after the buy order executes (if it does). You can’t do this if the cash is in a savings account at another bank/credit union.

  67. @Peter: Good point. I think you’ve explained it better than I have in the post 🙂

  68. Since the likes of TD Waterhouse and RBC now only offer in-house ISA products and seeing as they don’t have to pay trailers, it is disappointing that the rates are not higher. It would be nice to get the extra 0.25% and be allowed to purchase F-series version (e.g. TDB8151) or get the equivalent rate. It is not like I am paying for advice on the discount brokerage side to justify the lower rate version (e.g. TDB8150)….

    • @MB: I agree with you. TD and RBC have cut out 3rd party ISAs from their offering. Granted their in-house ISAs pay the same rate as the competition but the double dipping leaves one with a bitter taste.

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  70. For anyone interested on how BMO InvestorLine offers high interest savings account mutual funds, I’ve written an explanation at
    The kicker is they only permit investments of a minimum of $25,000 in these HISAs.

    • @Bet Crooks: Thanks for researching HISAs at BMO. I’ve added your research to this post and linked to your source. One wonders why BMO even bothers offering these accounts. A $25K minimum and 1% penalty makes it pretty much useless for almost everyone.

  71. I hate to say it, but I think it’s an advertising gimmick. So they can say, honestly, if someone asks, do you offer HISA no load mutual funds. But then I’m cynical!

  72. Just an update. I did test whether the minimum really is $25,000 for an investment at BMO InvestorLine, as I was getting some mixed messages from client support. I tried selling some of my 25,000 of DYN500, but the sale failed with the error message that I have to sell it all or none. Details are at
    (Also just to clarify. There is no 1% penalty for the “true” HISAs listed as choices by InvestorLine. They can be sold anytime. However if a new HISA was created by a mutual fund company and was available for sale on InvestorLine without being on their approved listed of HISAs, it would be subject to the 1% early redemption fee, if sold within 90 days, even though it might not be subject to the minimum holding requirement of $25,000.)

  73. I just sold some MIP510 today from my Itrade TFSA account in preparation for the new TFSA year. I had tried to sell it a couple days ago and there would have been a $38.88 early redemption penalty. I last bought on some MIP510 on October 1st, 2012. So I held off until today and there was no early redemption fee. $38.88 seems crazy when I only made around $10.00 in interest all year! It’s a scam that they don’t throw you some amount of interest on the cash that accumulates in your accounts and instead force you to jump through a bunch of hoops just to earn a few dollars in interest.

  74. BMO InvestorLine has added new BMO HISA (AAT770 for CAD; AAT780 for USD) options. These can be purchased and held with a minimum $5,000 balance. Still not as good as the $1,000 minimum at CIBC Investor’s Edge, but it’s much more reasonable than the old $25,000 limit. Thanks to John who tipped me off to this new improvement.

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  76. Does anyone know where to park US $? I have my account with Interactive Broker. They don’t seem to offer above mentioned accounts. Thanks!

  77. This is an excellent resource. Good work CC.
    Ok, now everyone bookmark this webpage. 🙂

  78. The minimum initial purchase of DYN500 and DYN1300 is $2000, not $1000 in the table.

  79. I tried searching for DYN1300 on Scotia itrade and it doesn’t show up. Only DYN500 shows up and it doesn’t show an option to Buy from the quote. Any tips?

  80. Canadian Capitalist

    @Central: I’ll double check and post back later whether the table is incorrect. Also, note that the table minimums are set by the fund but your brokerage minimums may be different.

    @JC: I’ll ask my contact at Scotia to look into this. I asked Scotia iTrade if they can add DYN1300 and my understanding was that it was done.

    • In itrade mutual fund trade screen, it does show that the initial purchase is $2000 for both DYN1300 and DYN500. Subsequent purchase is $100

  81. @CC @JC I made a purchase of DYN1300 in my Scotia iTrade account, on Aug 15.

    I tested it again, right now and yes, DYN1300 is available.
    Your selection tabs should be ‘Trade – Mutual Funds’ (i.e. not Equities). Your screen should look like this,

  82. Canadian Capitalist

    Thanks Avrex for checking up on this. It turns out both DYN1300 and DYN1350 have no account minimums but Scotia iTrade may impose some requirements.

  83. I am interested in the BTB100 account but I want to know what is the minimum period of investing and do I have to pay any charge if i take money out within 30 days.

  84. I recently learned (the hard way) that Scotia charges 90 day early redemption fee on all mutual funds, including ISA. This is Scotia-own fee and it is on top of any mutual fund early redemption fee. The exceptions are: Scotia Money Market Funds, Dynamic Money Market Funds, and all Scotia Mutual Funds. I had an ISA from another company.
    Does anyone know if Scotia ISA are included in the exception?

    Question 2: TD allows you to place a buy order when you don’t have enough cash in your account, as long you have enough money in an ISA or money market fund (they expect you to sell those to cover the amount). It appears that Scotia does not allow it and you have to wait for the next day for the ISA sale to settle. Does it behave differently with the Scotia ISA?

  85. Ask RBC the difference between RBF2010, RBF2020, RBF2030, RBF2040. RBF2010/20/30 are the same. The agent speculated they offer three identical funds for clients that want to invest more than $100,000 yet remain insured. RBF2040 is USD.

    • Canadian Capitalist

      @Brian: Thanks for your comment. I had already noted in my post that many HISAs are provided by subsidiaries and help in skirting the $100K CDIC limit.

  86. Great post!

    I have two quick questions for virtual-broker users. Which above fund did you choose to hold, and how about the holding penalty?


  87. Just to update the BMO InvestorLine info as of September 2013:
    -You can buy units in CAD of AAT770 *only*
    -You can no longer buy units in any other HISA through InvestorLine (e.g. you can no longer buy from Altamira, Dundee etc.)
    -The minimum initial purchase is $5000. The minimum additional purchase is $500.
    -You can redeem easily anytime with no penalty
    -You can buy units in USD of AAT780 *only*

    If you still hold units of a HISA issued by another financial institution you can keep them but when you sell that’s it. You can’t buy them again later.

    • Canadian Capitalist

      Thanks for keeping us posted Bet! I’ll update this post shortly.

    • Update to the BMO InvestorLine info as of 2013-11-22

      I called the number provided by BMO InvestorLine for clients who will exceed the $100K CDIC coverage limit and spoke to a live person about other Fund-based Investment Savings Accounts. The following were available:

      IBN100 ICICI Bank HIIS

      If you want to buy a third-party Investment Savings Account (ISAs) at BMO InvestorLIne, you have to talk to a live person. Once the third party ISAs are in your account, you can redeem them online.

  88. BMO InvestorLine has dropped their rates:

    AAT770 is now 1.25%
    AAT780 is now 0.20%
    as of November, 2013

    Funny how rates on mortgages and LOCs are going up but the rates WE get paid are going down. (I guess the answer is: buy bank stocks.)

  89. When I try to redeem my DYN1300 that I purchased from my itrade account in Oct/13, the confirmation page shows that there would be a $38.88 commission charge. I did not click proceed because of my concern about this commission fee. Are you sure that there is no commission charge for itrade customers with DYN1300?

  90. I saw a mention of these HISA’s in a G&M article and managed to google brought me to your post.

    Thanks for the information. I went straight ahead and picked up my broker BMO IL’s AAT770.

    Eventually, will check to see how I can pick up/look at the other institution’s HISAs.

    @Bet Crooks – At least it’s higher than getting 1.05% with the SmartSaver (though SS is more liquid and no longer has the 5K minimum).

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  92. Great article CC. Heads up that I tried BTB100 in my CIBC Investors Edge account and it could not find the fund. No problems with ATL5000 though.

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  94. Just curious. The article mentioned that some brokers automatically sell your HISA to cover any stock purchases you make. That’s handy. Currently I need to sell, wait the 1 day settlement, and then make a purchase.

    What brokers offer this service?

    • Ram Balakrishnan

      @Mike: At TDDI, the current holdings in TDB8150 are considered as part of buying power. You can make a stock purchase and cover part or all of it with the TDB8150 balance. Since stock purchases are settled in T+3 and TDB8150 sale is settled T+1, you can put a sell order on TDB8150 after you make a stock purchase.

  95. What about Scotia DYN1325 Series E with a minimum 100K investment. 1.3% return. I can seem to pull it up with itrade

  96. BMO Nesbitt Burns now charges $40 fee to buy the HISA if under $100K.

  97. Does anyone know if it is possible to buy any HISA’s through Questrade? I’ve called and they have said no, but the client services person did not seem very knowledgable…

  98. Kevin McGivern

    Does anyone know if the underlying security on these investment accounts is a portfolio of loans of some sort. The B2B acronym is giving me pause.

    More generally (and leaving the CDC coverage issue aside) is there any credit or performance risk here?

    Thanks for any info, even “quick and dirty”!

    • Ram Balakrishnan

      @Kevin: It is virtually impossible for retail clients buying GICs or even parking cash in their savings and chequing accounts to make a judgement on the credit quality of the issuer. That is why we have deposit insurance. As long as you have CDIC coverage, I wouldn’t be worried.

  99. I can second @Milllion Dollar Journey comment that B2B’s BTB100 is no longer available at CIBC Investors Edge. I could not find it , even after though searching…

  100. Does anyone have any thoughts or experience with the Purpose High Interest Savings ETF (TSX:PSA)?

    Appears to be 1.35% interest. Advantage I’m considering is that because it’s an ETF, could buy from Questrade for free and only pay the selling fee.


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  102. First of all congratulations for such an informative blog!

    Great job Ram!

    For investors seeking High Interest on their savings, the maximum possible return would be between 1.25% to 1.75% on their investments. However, the Consumer Price Index is at it’s lowest and has crept up to 2.30% as of May 2014. Manulife Bank offers 1.55% on their Regular Savings Account. The money can be withdrawn any time. This is far better way of investing in the HISA.

  103. Another update on CIBC Investor’s Edge. Aside from BTB not being available, additional contributions to ATL5000 have a $1000 minimum (even if you already have a position).

  104. Open your mind to alternative possibilities…

    When I move from securities to cash for an extended period I always park the cash in a Credit Union no-fee account in Manitoba, which presently pays 2% interest (this is not a special time-limited offer). Compare that to any Ontario account. Moving cash in & out of Questrade accounts can be done online and moving out in 25k$ e-transfers carries no fees. Check out Accelerate Financial.

    CDIC is not without limits. Cash accounts in Ontario are insured to 100k$ max, and there are additional limitations on that. Anyone concerned with stability of Credit Unions in Canada should do their own research.

    I ditched my bank, never to return.

  105. Hi, I tried to find rates for DYN1300 for Scotia iTrade but couldn’t find them anywhere.

    Eventually, on the phone with them they said the current rage (2014-12-04 is 1.25%). The rates are listed here:

    Unfortunately Google search doesn’t seem to find that site, nor is the information linked to from the Scotia Fund site or in iTrade itself.

  106. You forgot the HOM100. HOME Trust HISA @ 1.4%

  107. On these Discount Brokerage ONLY vehicles – note that the Current rates are @ 1.25% – it is also best to always us your own Institution – NO FEES, MINIMUM $ 1k, NO minimum holding days, AND ONE (1) day Settlement day NOTE: especially Scotia I-trade – this is the case for sure. NOW – for all those that like higher Int. Rates with NO service fees of any kind – look at PEOPLES TRUST ( Wishing you all a VERY MERRY CHRISTMAS

  108. Most of the brokerage HISA mutual funds, such as ATT770 and RBF2010 and TDB8150 have now (2015 01 26) dropped their interest rates to 1% because of the drop in the overnight rate.

  109. Should update the rate for DYN1300 to 1% now.

  110. Pingback: How to Buy Units in a High Interest Savings Account Fund at RBC Direct Investing | Financial Crooks

  111. I would like more information on where the risk is for these accounts. All I ever read is how great the ISAs are because they pay higher interest for comparable products (BA/MM accounts).

    In the event that a Canadian bank took a massive loss, is there exposure somehow because of where the funds sit or are used by the bank. Doesn’t matter that the additional risk is very very low, it would just be good to know.

    Sounds paranoid, but 6 years ago all the major US banks went bankrupt (well they should have anyway) and everybody seems to act like it never happened or that everything was fixed (it wasn’t).

    • Ram Balakrishnan

      @rab: It is good to be paranoid. It is always worthwhile asking where the extra risk is when looking at higher returns. These accounts are CDIC insured, therefore in the scenario that the issuing bank goes insolvent, CDIC should be making us whole.

  112. I also have a question regarding risk. If I am using a brokerage such as Questrade that is not a member of the CDIC but is a member of the IIROC and they should get into trouble would the cash in the HISA (margin, tfsa, rrsp) still be insured?Thanks for your advice.

  113. On the topic of paranoia I have a further concern that you can hopefully clarify. If I am using a brokerage account such as Questrade who is not a member of the CDIC but is a member of the IIROC and they end up in financial trouble will the cash in a hisa fund in either a tfsa, rrsp, or margin account be safe?

    • Any cash balances held with an IIROC firm, such as Questrade, is insured under the CIPF – up to $1 million. This is for cash balances with the brokerage firm itself.

      Any deposits in a HISA through a chartered bank will have $100,000 insurance coverage through CDIC.

      The two are separate. So if something were to happen with Questrade any cash balance up to $1 million would be insured and any balances in a HISA would also be insured, up to $100,000.

      Call us if you need more clarification or ask about our “100% CDIC Covered – Waterfall Account”

  114. April 7, 2015: The rates are outdated but HOM100 still pays the most.
    HOM100: 1.40%
    B2B100: 1.25%
    ATL5000: 1.10%

  115. What is wrong with dealing with Peoples trust and Hubert(Sunova)
    Their rates for HISA daily,us daily,and TFSA are by far higher than anyone else.



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  117. Equitable Bank HISA (EQB 100) currently pays 1.45%. I tried to buy the F-class version (EQB 200) which pays 1.7% but Credential Direct rejected the trade. 🙁

  118. People’s Trust HISA TFSA pays 2.25 % on cash savings.

    Hubert( HISA pays 1.90% on cash deposits as well as .75% on USD
    No costs whatsoever and both offer online transfers in and out to any other financial institutions.