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Email this4:59 pm
October 27, 2013
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I agree. Anyone with a Scotia iTrade account can buy either the DYN A or F series ISAs. I have done both by error, meaning I bought A series instead of F series.
These deposit accounts do not fall under the CIRO mutual fund directive to NOT pay trailer fees to 'order execution only', i.e. discount brokerage, accounts. That directive does apply to money market mutual funds (true mutual fund trusts), but not ISAs (deposit accounts).
Indeed, as far as I know, at least some discount brokerages deny access to their F series ISAs to their account holders. BMO Investorline is one for sure as I have an account there, and I believe both RBC DI and TDDI are others. OTOH, I think Questrade only allows their clients to buy F series.
Norman1's table is appropriate since a significant number of investors cannot access F series ISAs within their discount brokerage accounts.
10:35 am
June 22, 2023
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AltaRed is correct with respect to RBC DI only allowing clients to buy RBC A series. The irony is not lost on me, as I discovered (upon opening a QTrade account) that I could buy RBC F series products on QTrade but not on the RBC DI flatform. Nothing like destroying customer loyalty (although that was compromised long ago).
Maybe Peter could entertain the idea of creating a BISA chart. Maybe he could allow Norman limited access to update Peter's website. Thus, Peter would benefit from another fancy chart and Norman would still have his mojo flowing related to being the BISA guy.
10:47 am
October 27, 2013
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I am not sure of the benefit. F series ISAs almost exclusively have a yield 25bp more than that of A series, i.e. the amount of the trailer fee. I cannot imagine anyone is going to open a brokerage account at Qtrade just to buy, for example, the F series of the RBC ISA....versus buying A series of the in-house ISA at the brokerage they are already with.
I am lucky to be with Scotia iTrade anyway to avail myself of their DYN F series, but if that was not the case, I would buy an equivalent F series MMF that would achieve the same thing. As another example, with my account at BMO Investorline, I can only buy the A series of their BMT series of ISAs. I thus skip that and instead buy the F series of their MMF, i.e. BMO95142 to get about the same yield as an F series ISA. The point being, there are easy and effective workarounds.
10:29 am
April 6, 2013
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NokomisStation said
Maybe Peter could entertain the idea of creating a BISA chart. Maybe he could allow Norman limited access to update Peter's website. Thus, Peter would benefit from another fancy chart …
The brokerage ISA rates I post from time to time are intended to raise awareness of the alternative to savings accounts. My posts are not intended to be top rates surveys like the GIC Chart.
As you and AltaRed discovered, the brokerages do not offer all the brokerage ISA's. I think people choose particular brokerage accounts for reasons other than their shelf of brokerage ISA's. Such people are aiming for much more than the ¼% or ½% improvement from switching brokerage ISA's or series of them.
1:17 pm
October 27, 2013
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Agreed. I would never pick a brokerage on the basis of what ISAs it offers, nor the rates offered.
The ISAs offered by any brokerage are simply a convenient way to store cash, secondary to the primary purpose of a DIY brokerage account.
2:53 pm
January 12, 2019
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.
It's amazing how many people still aren't aware that ISAs are
available to them in their investment accounts!
They let their uninvested cash sit as Raw Cash ... earning ZIP.
- Dean
" Live Long, Healthy ... And Prosper! "
5:18 pm
January 7, 2023
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I have been keeping some short term cash in TDB8150 and currently it is paying 1.8%.
I just noticed that I can buy ETF: TCSH for free and the yield is 2.74%, 1-year return is 2.63% according to yahoo.finance.
Why would I use TDB8150 when I can get better return from TCSH with no fees?
5:41 pm
April 27, 2017
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Warwick111 said
I have been keeping some short term cash in TDB8150 and currently it is paying 1.8%.
I just noticed that I can buy ETF: TCSH for free and the yield is 2.74%, 1-year return is 2.63% according to yahoo.finance.Why would I use TDB8150 when I can get better return from TCSH with no fees?
According to TD, it's 2.59% for TCSH. I wouldn't use Yahoo for this. You will lose a bit on the spread as well. Does not matter if you plan to hold for a while but can be meaningful over short term.
You are essentially comparing something with risk that is close to zero (an ISA) to a very low but non-zero risk product (TCSH). Your pick.
9:09 pm
October 27, 2013
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I agree with Mordko TCSH is not for a short term hold, e.g. cash in and out perhaps each month. You will likely lose 1 cent either way on bid/ask spread and you can incur a cap gain and/or loss depending on when you buy/sell within the month, i.e, interest accrual results in price climbing through out the month and then dropping back towards $50 after record date for monthly interest. These are best for multi-month holds.
Its actual yield will be close to that of TD's F series money market funds (whatever they may be) and/or the likes of BMO95142 money market fund.
These posts should be re-located to the appropriate thread.. This thread is exclusively for ISA offering updates.
5:04 am
April 27, 2017
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The 1 cent spread will cost 2 basis points (0.02%) given ~$50 price range.
It's the same asset class as an ISA but looking under the hood, I would expect higher “in the pocket” interest rate on TCSH. Slightly longer duration, more corporate credit exposure. And I think it's aligned with what we are seeing today with ISA rates -0.5% less.
And I would expect more of a lag when BoC rate changes for TCSH.
8:13 am
October 27, 2013
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mordko said
And I would expect more of a lag when BoC rate changes for TCSH.
Just as there is for money market mutual funds with duration in the order of 90-120 days. While I agree they are in the same asset class, i.e. ISAs vs MMFs vs Cash ETFs, they are not identical animals. Investors need to understand why they would buy, or not buy, each of those offerings.
10:04 am
January 12, 2019
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Warwick111 said
I have been keeping some short term cash in TDB8150 and currently it is paying 1.8%.
I just noticed that I can buy ETF: TCSH for free and the yield is 2.74%, 1-year return is 2.63% according to yahoo.finance.Why would I use TDB8150 when I can get better return from TCSH with no fees?
Say What ... an ETF @ TDDI with No fees/commissions⁉️
How's that❓
- Dean
" Live Long, Healthy ... And Prosper! "
11:29 am
October 27, 2013
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List of commission free ETFs at TDDI https://www.td.com/ca/en/inves.....-free-etfs
I think every DIY brokerage has some now. Certainly BMO IL and Scotia iTrade and RBC DI do (the brokerages where I and/or spouse use).
12:18 pm
January 12, 2019
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Thanks for that ⬆️ Link, AltaRed❗
I wasn't aware ... Much Appreciated 
- Dean
" Live Long, Healthy ... And Prosper! "
3:11 am
October 21, 2018
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I recently sold all my TDB8150 and bought TCSH. My son recommended it. It's what he uses for readily available cash.
5:09 am
February 14, 2023
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surely nothing can go wrong with holdings named SURE, SOUND, and STABLE !
8:02 am
October 27, 2013
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pwm said
I recently sold all my TDB8150 and bought TCSH. My son recommended it. It's what he uses for readily available cash.
Just remember that sells of TCSH will? likely? end up on a T5008 due to different acquisition and disposition prices. Can be good given cap gains/loss tax rates but can also be a real nuisance.
10:19 am
April 27, 2017
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You will also get return of capital and capital gains distributions with TCSH which need to be tracked in taxable accounts.
In addition to higher yield, you get the advantage of being able to sell and use the money right away to buy something else when re-balancing. With ISAs/MMFs the process is a bit painful as you have to wait until the next day.
11:07 am
August 4, 2010
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Aren't unsettled ISA/MMF (and mutual funds in general) sale funds available for purchases in the same way as unsettled exchange equities sales funds? I thought they were all involved in the same net wash, and you wouldn't have to wait for the cash to settle the next day.
TDDI has a concept called "near cash", which includes your holdings in ISAs and certain other liquid equivalents such as MMFs. Even without selling you can make a purchase up to their value, and sell off in the near cash positions that same day so that they all settle on the same T+1. I believe TD will forcibly sell if you don't. I'm can't remember if this is available in registered accounts, but I'm 99% sure I was able to use unsettled ISA/Mutual proceeds ("trading cash") for purchases the same day. It may be different at different brokers?
11:25 am
April 27, 2017
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NorthernRaven said
Aren't unsettled ISA/MMF (and mutual funds in general) sale funds available for purchases in the same way as unsettled exchange equities sales funds? I thought they were all involved in the same net wash, and you wouldn't have to wait for the cash to settle the next day.TDDI has a concept called "near cash", which includes your holdings in ISAs and certain other liquid equivalents such as MMFs. Even without selling you can make a purchase up to their value, and sell off in the near cash positions that same day so that they all settle on the same T+1. I believe TD will forcibly sell if you don't. I'm can't remember if this is available in registered accounts, but I'm 99% sure I was able to use unsettled ISA/Mutual proceeds ("trading cash") for purchases the same day. It may be different at different brokers?
ISA/MMF orders are processed at the end of the day based on NAV, so the proceeds are not available instantaneously when you need them, like with ETFs.
TDDI and margin accounts in general may give you credit vs assets including MMFs, and that's my understanding of TDDI’s “near cash” concept. Credit is different from using proceeds of unsettled ETF sale.
It's not a big deal but I find ETfs more convenient for re-balancing.
