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Brokerage investment savings accounts
September 16, 2024
10:59 am
AltaRed
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I surmise that all? (most?) of the discount brokerages waive commissions for the buy/sell of money market mutual funds but each should confirm that before buying. Those few that would charge commissions would certainly be non-competitive with those that do not.

Also unlike ISAs in which discount brokerages could limit one to purchasing ISAs to A class with a trailer fee of circa 0.25% (because they are not mutual funds), discount brokerages cannot sell true money market mutual funds (MMFs) with a trailer fee per regulatory rules.

This often (or sometimes) makes a MMF yield higher than that of a Class A ISA (with trailer fee). Further, an ISA yield is rather opaque in that it is a deposit account with an interest rate set by the bank just like a savings account. You can be assured the banks are pocketing some spread in that area of business.

A MMF is transparent in that it must flow through all income net of expenses such as MER each month.

As a for example for myself: In my Scotia iTrade account, I buy the DYN6004 (Class F) ISA with a current rate of 4.25% rather than DYN6000 (Class A) version at 4%. On the other hand, over at BMO Investorline, they won't let me buy their Class F version of their ISA so I would have to buy their Class A BMT104 at 4% that has an implied trailer fee of 0.25%. So I say, nuts to that and I buy their BMO95142 Class F MMF with an MER of 0.13% and current yield of 4.5%..... but floating downward as holdings mature and new ones are bought at lower yield.

All of this is pretty much 'playing at the margin' though and there is minimal benefit of chasing rabbits for 25bp here or there.

September 23, 2024
9:24 am
Dean
Valhalla Mountains, British Columbia
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Dean said
.
FWIW . . .

TDB8152 (TD USD ISA) remains @ 4.90% ... but I don't expect that to last
much longer.

    Dean

TDB8152 is now down to 4.40% .

We thank Mr. Powell for that ... LOL sf-laugh

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 23, 2024
9:27 am
fsabbagh
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So what have you guys been doing? Keep it there or moving to something else?

September 23, 2024
9:35 am
NorthernRaven
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Dean said

Dean said
.
FWIW . . .

TDB8152 (TD USD ISA) remains @ 4.90% ... but I don't expect that to last
much longer.

    Dean

TDB8152 is now down to 4.40% .

We thank Mr. Powell for that ... LOL sf-laugh

    Dean

  

The standard, 30-year fixed-rate mortgage averaged 6.09% in the week ended September 19, Freddie Mac said Thursday, down from last week’s 6.20% and substantially below a two-decade peak of 7.79% seen last fall. It’s the lowest level since early February 2023.

"We thank Mr. Powell for that", says U.S. homebuyers.

September 23, 2024
9:43 am
mordko
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It's interesting, given that yields on 30-year treasuries went up last week.

https://www.cnbc.com/2024/09/20/treasury-yields-lower-as-investors-digest-unemployment-data.html

September 23, 2024
9:56 am
Dean
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fsabbagh said

So what have you guys been doing? Keep it there or moving to something else?  

For me, there's no change planned. It stays right there, to be used as needed in my TDDI USD Account.

Better in a ISA @ 4.30%, than sitting as raw Cash @ 0.00% ... Eh ! sf-smile

    Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

September 23, 2024
10:30 am
AltaRed
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I am not fussed about the drop either. It is as expected and will continue to be so. I also never keep very much in USD cash equivalents anyway since my ongoing cash flow need for USD is minimal. A number of USD ISAs dropped late last week. I expect Scotia and BMO to follow sometime this week.

September 26, 2024
4:48 pm
AltaRed
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BMOIL was the last domino to fall in the USD universe, BMT124 @ 4.4%

September 27, 2024
6:26 pm
Norman1
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Rates stable since previous update:

ISA (Canadian Dollars) Rate
BMO High Interest Savings Account (BMT104) 4.00%
Scotiabank Investment Savings Account, Series A (DYN6000)
B2B Bank HIIA, Series A (BTB100) 3.90%
Equitable High Interest Savings Account, Series A (EQB1000)
Home Trust High Interest Savings Account, Class A (HOM100)
NBI Altamira CashPerformer Account, Series A (NBC100) 3.80%
RBC Investment Savings Account, Series A (RBF2010)
Renaissance High Interest Savings Account, Series A (ATL5070)
TD Investment Savings Account, Series A (TDB8150)
Manulife Bank Investment Savings Account (MIP510) 3.75%
October 1, 2024
3:09 pm
davidgeorge
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The rate difference between series A and series F is 0.25%. What is the reason(s) that regular investors choose series A? Does series F always charge investors more than 0.25% fees? If I choose a bank's trade platform and purchase the same bank's ISA, can I go with series F and get fees being waived?

October 1, 2024
3:23 pm
AltaRed
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In many cases, retail investors cannot buy F class (0% trailer fee) ISAs at their discount brokerage....though they should be able too since there is no advisory relationship involved. Retail investors who cannot buy F class at their discount brokerage have little choice but to buy A class (typically a 0.25% trailer fee) though that might be discounted 10-15bp or so for large sums, e.g. >$100k.

Of the big bank discount brokerages, I am aware of only Scotia iTrade that will permit its account holders to buy F class of their DYN series of ISAs. I believe some independents like Questrade that will only let their account holders purchase F class of a variety of ISAs. In other words, luck of the draw.

October 4, 2024
7:12 pm
Norman1
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The Series A versus Series F availability is a dealer pricing issue. No advisory relationship was required.

Dealers accepted orders for Series F ISA's and mutual funds if they were already being paid directly by the client under a separate agreement. Some refused because they weren't large enough to justify the cost of a direct client billing system that would charge the same amount as what the Series A trailer fees would be.

Not all the mutual fund dealers on FundServ are as large as BMO InvestorLine, BMO Nesbitt Burns, Scotia iTRADE, or ScotiaMcLeod. One small dealer I dealt with didn't even have a system to print their own client statements or provide online account access. Instead, the online account access and the quarterly statements were done by the mutual fund company!

October 11, 2024
8:51 pm
Norman1
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Rates unchanged since previous update:

ISA (Canadian Dollars) Rate
BMO High Interest Savings Account (BMT104) 4.00%
Scotiabank Investment Savings Account, Series A (DYN6000)
B2B Bank HIIA, Series A (BTB100) 3.90%
Equitable High Interest Savings Account, Series A (EQB1000)
Home Trust High Interest Savings Account, Class A (HOM100)
NBI Altamira CashPerformer Account, Series A (NBC100) 3.80%
RBC Investment Savings Account, Series A (RBF2010)
Renaissance High Interest Savings Account, Series A (ATL5070)
TD Investment Savings Account, Series A (TDB8150)
Manulife Bank Investment Savings Account (MIP510) 3.75%
October 12, 2024
10:54 am
Dean
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.
Best I can tell, there's been little to no changes with US$ ISAs as well.

    (e.g. TD's TDB8152 US$ ISA Remains @ 4.40% )

.
Dean

sf-cool " Live Long, Healthy ... And Prosper! " sf-cool

October 24, 2024
2:03 pm
hwyc
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1.1% gap in general between C$ and U$ version ISAs until Nov 7 !!

October 24, 2024
8:49 pm
Norman1
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Equitable Bank, Manulife Bank, National Bank, Royal Bank, and TD Bank lowered their rates since previous update:

ISA (Canadian Dollars) Rate
BMO High Interest Savings Account (BMT104) 4.00%
Scotiabank Investment Savings Account, Series A (DYN6000)
B2B Bank HIIA, Series A (BTB100) 3.90%
Home Trust High Interest Savings Account, Class A (HOM100)
Renaissance High Interest Savings Account, Series A (ATL5070) 3.80%
Equitable High Interest Savings Account, Series A (EQB1000) 3.40%
NBI Altamira CashPerformer Account, Series A (NBC100) 3.30%
RBC Investment Savings Account, Series A (RBF2010)
TD Investment Savings Account, Series A (TDB8150)
Manulife Bank Investment Savings Account (MIP510) 3.25%
October 26, 2024
6:27 am
Norman1
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B2B Bank and Home Trust lowered their rates since previous update:

ISA (Canadian Dollars) Rate
BMO High Interest Savings Account (BMT104) 4.00%
Scotiabank Investment Savings Account, Series A (DYN6000)
Renaissance High Interest Savings Account, Series A (ATL5070) 3.80%
B2B Bank HIIA, Series A (BTB100) 3.40%
Equitable High Interest Savings Account, Series A (EQB1000)
Home Trust High Interest Savings Account, Class A (HOM100)
NBI Altamira CashPerformer Account, Series A (NBC100) 3.30%
RBC Investment Savings Account, Series A (RBF2010)
TD Investment Savings Account, Series A (TDB8150)
Manulife Bank Investment Savings Account (MIP510) 3.25%
October 29, 2024
9:11 am
kesa
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DYN6000 now 3.45%

October 29, 2024
8:34 pm
Norman1
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Bank of Montreal, Renaissance, and Scotiabank lowered their rates since previous update:

ISA (Canadian Dollars) Rate
BMO High Interest Savings Account (BMT104) 3.45%
Scotiabank Investment Savings Account, Series A (DYN6000)
B2B Bank HIIA, Series A (BTB100) 3.40%
Equitable High Interest Savings Account, Series A (EQB1000)
Home Trust High Interest Savings Account, Class A (HOM100)
NBI Altamira CashPerformer Account, Series A (NBC100) 3.30%
RBC Investment Savings Account, Series A (RBF2010)
Renaissance High Interest Savings Account, Series A (ATL5070)
TD Investment Savings Account, Series A (TDB8150)
Manulife Bank Investment Savings Account (MIP510) 3.25%
November 9, 2024
1:21 pm
usephrase
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Norman1 said
Bank of Montreal, Renaissance, and Scotiabank lowered their rates since previous update:

ISA (Canadian Dollars) Rate
BMO High Interest Savings Account (BMT104) 3.45%
Scotiabank Investment Savings Account, Series A (DYN6000)
B2B Bank HIIA, Series A (BTB100) 3.40%
Equitable High Interest Savings Account, Series A (EQB1000)
Home Trust High Interest Savings Account, Class A (HOM100)
NBI Altamira CashPerformer Account, Series A (NBC100) 3.30%
RBC Investment Savings Account, Series A (RBF2010)
Renaissance High Interest Savings Account, Series A (ATL5070)
TD Investment Savings Account, Series A (TDB8150)
Manulife Bank Investment Savings Account (MIP510) 3.25%

  

ScotiaBank ISA:
https://ads.scotiabank.com/investment-savings-account

Can a Personal ISA account buy Series F at 3.70% rate?
What is Trailer Fee 0.1% for Series A at 3.60% rate? Is the actual interest rate =3.60%-0.1%=3.50% ?

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