Canadian High Interest Savings Bank Accounts - Forum: General comparisons

Warwick111 on Brokerage investment savings accounts

Thu, 30 Apr 2026 08:58:25 -0700

Norman1 said
Because of the T+1 settlement, the ISA buy order would need to be entered before the cutoff on Thursday if one has funds arriving in the account Friday. That way, the ISA purchase will settle on Friday and the funds will start earning interest Friday instead of Monday.

Thanks, Norman1, this is a good tip.

I supposed when I sell the ISA on Friday before the cutoff, I get to keep the interest from Friday to Sunday. Is that correct?

AltaRed on Brokerage investment savings accounts

Thu, 30 Apr 2026 08:15:48 -0700

It is essentially a Cash ETF like many others with slight variations on a theme. It is not CDIC insured but the majority of its holdings are from the big 6 banks or T bills. That is pretty darn close to the ultimate in safety.

I would not hesitate to own it or any one of numerous money market mutual funds.

It is not unlike whether you sleep on a mattress on a frame raised from the floor or sleep on the mattress on the floor.

christinad on Brokerage investment savings accounts

Thu, 30 Apr 2026 07:17:19 -0700

Thanks, then it wouldn't be recommended to be invested in as not as safe?

Norman1 on Brokerage investment savings accounts

Thu, 30 Apr 2026 04:13:38 -0700

The Purpose High Interest Savings Fund is not a brokerage ISA.

It is a fund that parks money in bank deposits and treasury bills. It is more of a money market fund.

christinad on Brokerage investment savings accounts

Thu, 30 Apr 2026 03:38:26 -0700

Sorry this is a long thread - I'm wondering if anyone has invested in the purpose savings fund - it's available at TD Direct Investing. It's supposed to have a net yield of 2.18% and a fee of .15%

Norman1 on Brokerage investment savings accounts

Wed, 29 Apr 2026 23:46:05 -0700

Because of the T+1 settlement, the ISA buy order would need to be entered before the cutoff on Thursday if one has funds arriving in the account Friday. That way, the ISA purchase will settle on Friday and the funds will start earning interest Friday instead of Monday.

Warwick111 on Brokerage investment savings accounts

Wed, 29 Apr 2026 05:16:15 -0700

Thanks, AltaRed.

AltaRed on Brokerage investment savings accounts

Wed, 29 Apr 2026 04:47:21 -0700

No, because you don't actually pay for it until the next business day. The brokerage transfers the funds to the ISA issuer on settlement day. Remember that the brokerage is simply the agent for the issuer, not the issuer itself.

Warwick111 on Brokerage investment savings accounts

Wed, 29 Apr 2026 03:22:37 -0700

If I buy an ISA before the cut off time on a Friday, even though it is not settled until the following Monday, am I entitle to the interest earned on Friday, Saturday and Sunday?

Norman1 on Brokerage investment savings accounts

Wed, 29 Apr 2026 01:09:15 -0700

Rates have been stable since previous update:

ISA (Canadian Dollars)	Rate
BMO High Interest Savings Account (BMT104)	1.95%
Scotiabank Investment Savings Account, Series A (DYN6000)	1.95%
B2B Bank HIIA, Series A (BTB100)	1.90%
Equitable High Interest Savings Account, Series A (EQB1000)
Home Trust High Interest Savings Account, Class A (HOM100)
NBI Altamira CashPerformer Account, Series A (NBC100)	1.80%
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)	1.65%

Norman1 on Brokerage investment savings accounts

Mon, 27 Apr 2026 22:21:13 -0700

I don't remember when Scotia iTRADE changed it. My order records show the 3:30 pm text on mutual fund orders as far back as May 2021.

AltaRed on Brokerage investment savings accounts

Mon, 27 Apr 2026 02:58:05 -0700

My main brokerage is Scotia iTrade and that 3:30pm cutoff must be relatively new (within a year or two I mean) from what was a previous 'best efforts' that late in the trading day. Not that it matters to me as I am a net seller of securities given I am in my withdrawal phase (retirement). Good news though!

Norman1 on Brokerage investment savings accounts

Mon, 27 Apr 2026 02:40:19 -0700

Brokerage ISA's are settled T+1, just like regular stock transactions.

Scotia iTRADE has a 3:30 pm cutoff for mutual fund orders:

Orders must be submitted by 3:30 pm for current day consideration.

If you redeem or switch your mutual fund within 90 days of the purchase date, there are fees that may be relevant to you: Early Redemption Transaction fees may be charged and deducted from the settlement amount by some mutual fund companies including Scotia Mutual Funds. Please refer to the prospectus of each fund for details.

Scotia iTRADE makes the increased buying power of a brokerage ISA sale available within 20 minutes. The recognition isn't immediate. But, one does not need to wait until the next day.

Rail Baron on Brokerage investment savings accounts

Mon, 27 Apr 2026 02:22:33 -0700

With Q Trade, it takes a day or two to settle ISA withdrawals, depending on what time of the day the sale order is received.

Once, in the last three years, I missed the 2 pm ET cutoff on a day when I bought about $6,000 of MFC. It cost me about $3 in interest for the one day gap between the MFC purchase and the ISA settlement.

Since then, I make sure to sell ISA units the day before I make any equity purchases.

AltaRed on Brokerage investment savings accounts

Sun, 26 Apr 2026 06:05:36 -0700

In reality, MMF and ISA funds are assumed to be available by the brokerage for purchase of other products such as equities, just like Cash ETFs
IF the order to sell the ISA or MMF is done before mutual fund cut off time which is typically in the order of 2pm Eastern, or perhaps a bit later with some brokerages.

I seem to recall brokerages, TDDI in particular, identified the potential problem and made the in-house TD ISA cutoff closer to 4pm. A few others IIRC have indicated 'best efforts' to make ISA funds available even if the ~2pm cutoff was missed.

Mordko is correct in saying that would not be an issue with margin accounts. At most, a day's interest might be payable.

That all said, it is a potential glitch with ISAs and MMFs that does not exist with Cash ETFs.