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Brokerage investment savings accounts
October 28, 2022
9:19 pm
Norman1
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Jim Sherat said
That's an amazing statistic, Norman; but maybe it's an easy call from the perspective of High Wealth individuals, who've accumulated more than enough for themselves and their beneficiaries, for many lifetimes. No need to worry about earning interest, and increasing their tax burden ... or take on any risk in the equities markets. …

I don't think TD Bank is that interested in savings account deposits, judging from their 0.01% and 0.05% savings account rates.

Their TD ePremium Savings Account is better at 1.4%. But, only when account balance is $10,000 or more. Otherwise, the interest is zero.

TD Bank likely prefers clients move funds into one of their cashable GIC's once one has at least $1,000. The cashable 100-Day TD Special Offer GIC pays 2.45%.

October 29, 2022
1:18 am
Loonie
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The banks make money on all the types of accounts they offer. They make sure they structure them in such a way that they will make money. Part of that strategy is the extremely low to non-existent interest rates. And don't forget the fees!

They apparently get lots of customers for these accounts or else they wouldn't offer them; It's very cheap money, for the bank. And whenever someone outgrows the account and accumulates enough money to complain about the rate, they will introduce them to a sales rep who will promise the moon in order to sell them a house-brand mutual fund. or index-linked GIC, thus allowing the rep to meet their sales quota.

October 29, 2022
4:33 am
Jim Sherat
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lots of good observations and upon further reflection, I agree the most likely source of the mega funds sitting in Big6 Banks, near-zero rate HISAs, is tens of thousands of regular folks, who are more concerned about filling the gas tank, stocking the fridge / pantry, acquiring clothes / school supplies for the kids, etc. than shopping CUs, for a better rate on their $357 HISA balance.

October 29, 2022
5:54 am
savemoresaveoften
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Jim Sherat said
lots of good observations and upon further reflection, I agree the most likely source of the mega funds sitting in Big6 Banks, near-zero rate HISAs, is tens of thousands of regular folks, who are more concerned about filling the gas tank, stocking the fridge / pantry, acquiring clothes / school supplies for the kids, etc. than shopping CUs, for a better rate on their $357 HISA balance.  

Also there are some people that just prefer simplicity and refuse to open multiple accounts at different FIs for no good reason, and just stick it at a big bank.

October 29, 2022
6:08 am
dougjp
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Lack of instant access to funds too, because of having to move money around and wait. Lots of people don't do any planning ahead (or can't).

" We may never pass this way again " - Seals & Crofts

October 29, 2022
10:07 am
Doug
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Bill said
If I buy a CIBC gic in my Investor's Edge account does anyone know how I'd find out whether it would be held in nominee or client name?  

Definitely nominee name.

Keep in mind, nominee name means the following:

The Canadian Depository for Securities, Limited --> your CDS member participant's name --> your name (in non-registered accounts)

and:

The Canadian Depository for Securities, Limited --> your CDS member participant's name --> your CDS member participant's registered accounts trustee/custodian --> your name (in registered accounts)

Cheers,
Doug

October 29, 2022
10:58 am
Bill
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Thanks, Doug, but I have no idea what your response means. For example, if I buy a non-registered GIC directly from CIBC I think your answer suggests it would be in nominee name too - ? I'm pretty sure it's not, just me and CIBC involved.

My question was really about how I could determine whether it's in nominee or my own name.

And if the scenario is slightly different, i.e. CIBC GIC purchased directly from CIBC but held in my Investor's Edge (CIBC related entity) account. I'm guessing nominee, due to being held in broker account, but I'm wondering how I could verify that, by other than calling them. When I access my account or view my statements and view my holdings is there any way to tell whether it's in nominee name or not? As Norman1 has indicated this has implications re CDIC coverage, not that I expect CIBC to go under.

October 29, 2022
1:31 pm
Norman1
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I think one will have to ask CIBC Investor's Edge before buying. To confirm after buying, one will need to interpret the fine print of the account statements.

My BMOIL monthly statements have this fine print:

All security positions displayed under Your investment details are segregated unless otherwise indicated. Should there be a security in which the account holds a portion of the quantity segregated and a portion registered in your name, this will be indicated under the security description column.

In BMOIL statements, holdings are held by a nominee and segregated unless otherwise indicated.

The nominee does not have to be The Canadian Depository for Securities (CDS). A GIC issuer could maintain its own register of ownership and not issue actual certificates that need to be returned when the GIC is transferred or matures.

October 29, 2022
7:05 pm
Bill
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That's helpful, thanks, Norman1.

October 31, 2022
7:43 am
Bob
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Norman1 said

ISA Rate
Scotiabank Investment Savings Account, Series A (DYN6000) CAD 3.65%
B2B Bank HIIA, Series A (BTB100) CAD 3.25%
Home Trust High Interest Savings Account, Class A (HOM100)
RBC Investment Savings Account, Series A (RBF2010) CAD
TD Investment Savings Account, Series A (TDB8150) CAD
Equitable High Interest Savings Account, Series A (EQB1000) CAD 2.95%
BMO High Interest Savings Account (BMT104) CAD 2.90%
Renaissance High Interest Savings Account, Series A (ATL5000) CAD
Manulife Bank Investment Savings Account (MIP510) CAD 2.80%

  

BMO BMT104 HISA CAD is now 3.25%

October 31, 2022
3:58 pm
dougjp
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CIBC and BMO (intentionally?) asleep at the switch, as in oh, did BoC change rates? sf-confused Try to grab some more days of free money....

" We may never pass this way again " - Seals & Crofts

October 31, 2022
4:59 pm
AltaRed
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It is my anecdotal experience each of the major banks make changes on their own time schedule. The BoC change was on Oct 26... 4 business days ago. Not anything I would lie awake at night over.

Recently TD has usually been first, followed immediately by RY and then the others over a matter of days thereafter. This time, Scotia was first on Oct 26th and then TD.

November 1, 2022
7:23 am
Bob
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CIBC Renaissance High Interest Savings Account, Series A (ATL5000) CAD raised to 3.25%, after BMO raised theirs to 3.25% yesterday

National Bank's Altamira cashperformer NBC100 is still at 2.90%

November 1, 2022
8:16 am
Bill
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T&C for ATL5000 indicate it's held in nominee name only, so my understanding is the CDIC coverage would be separate from one's own CIBC coverage.

T&C for TD's TD8150 say "2. Operation of the TD ISA
Your Dealer has asked the Bank to open the TD ISA in the
Dealer's name on your behalf. The Bank has agreed to open a
TD ISA for your Dealer on your behalf and has designated the
Servicing Agent to act as a recordkeeping agent and to perform
certain administrative, trust accounting and other services with
respect to the TD ISA." So, again, am I correct to assume the CDIC coverage for TD8150 is separate from one's own deposits with TD?

November 1, 2022
11:23 am
Loonie
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Why don't you phone or email CDIC and ask them for a definitive answer and let us know?

November 1, 2022
12:39 pm
Bill
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I'm pretty comfortable with my understanding, just want to bounce it off folks here in case anyone has any helpful input.

November 1, 2022
1:55 pm
AltaRed
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i agree with Loonie it would be best to phone and confirm if it is that important to you. I would never care about it with a big 5 bank. It is not uncommon for people or businesses to have millions (tens of millions even) with a big 5 bank.

November 2, 2022
8:00 am
hwyc
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TDB8152 @ 3.20% (TD ISA USD)

November 2, 2022
8:57 am
AltaRed
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3.5% Series A USD at Scotia iTrade (3.55% >$100k)

November 2, 2022
8:18 pm
savemoresaveoften
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Does the TDB8150 and usd equivalent both have minimum holding period of 30 days ? The product description says no holding period but when my friend put it an order to sell, it warns of a $45 or something like and quote min holding period of 30 days ? (I am repeating what he said so the exact wording for the warning may not be 100% precise)
I don’t trade with TD web broker so can’t confirm if it’s true or not.

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