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Renaissance High Interest Savings Account
July 13, 2020
7:45 am
Londonguy
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dougjp said

So if you had a broker account at, for example, CIBC Investor's Edge, what alternative to ATL5000 (CIBC owned Renaissance Cdn. Savings) @ 0.3% would you look at to preserve capital that is in cash, and do better in terms of return? Maybe there is no answer, they "gotcha"? People with RRIFs in particular generally keep some $ in cash for the future withdrawals, rather than put everything in stocks and bonds.  

Yes, they "gotcha" as you put it. The standard alternative for holding cash is the various bank ISAs, but those rates have all cratered down to 0.25% along with everything else.

If you want or need to be in cash and can't commit to term, you're hooped

July 13, 2020
5:48 pm
AltaRed
BC Interior
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True enough but people generally have a fixed income component in their RRIFs of a term of appropriate length for a future withdrawal. For example, a two year GIC for a withdrawal 2 years from now, or if one had the RRIF in a brokerage account, a short term bond mutual fund or ETF.

July 14, 2020
2:43 am
Doug
British Columbia, Canada
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dougjp said
I'm actually glad this subject got resurrected, because savings rates on cash are so bad compared to what is routinely available outside Investment Accounts (and always has been so), lots of people are trying to figure where else to go.

So if you had a broker account at, for example, CIBC Investor's Edge, what alternative to ATL5000 (CIBC owned Renaissance Cdn. Savings) @ 0.3% would you look at to preserve capital that is in cash, and do better in terms of return? Maybe there is no answer, they "gotcha"? People with RRIFs in particular generally keep some $ in cash for the future withdrawals, rather than put everything in stocks and bonds.  

Good question, dougjp. You are captive, yes, but these brokerage HISAs are still useful in that they allow you to earn something on your funds that are otherwise earning nothing. And, as AltaRed said, many people have fixed income components to their RRIF portfolios. And, as you've pointed out, you do usually have to keep a portion of your fixed income component in cash to cover mandatory minimum withdrawals. These are great for that.

And, really, 0.30% isn't that bad when you consider it's comparable to the Simplii Financial and Tangerine base, non-promotional savings rates, and directly matches the Manulife Bank HISA held directly.

I've used them for the past five years (the Scotia and ADS Canadian Bank equivalents, through Scotia iTRADE). Product literature is generally available on the asset management subsidiary websites of the major banks.

Cheers,
Doug

July 14, 2020
4:02 am
dougjp
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Thanks, I figured there was no "magic wand" to escape out into the 1.8 - 2% world of savings. 😉

Good idea about fixed income with expiries matching annual RRIF withdrawal timing too. For me, both the amount and timing of that withdrawal are variables due to tax planning, so it would only work to a small extent.

It's not so bad being senile; you get to meet many more people.

February 23, 2022
7:48 am
hwyc
GTA
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Starting March 7, CIBC will begin charging an upfront fee of $6.95 a trade to buy or sell mutual funds on Investor’s Edge. I hold the HISA fund in self-directed RSP. Now with a charge like that, it's hardly worth to hold or maintain.

February 24, 2022
6:50 am
dougjp
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hwyc said
Starting March 7, CIBC will begin charging an upfront fee of $6.95 a trade to buy or sell mutual funds on Investor’s Edge. I hold the HISA fund in self-directed RSP. Now with a charge like that, it's hardly worth to hold or maintain.  

I have written to them, as you probably did, to see if it applies. I want to see it in writing either way.

I stopped using it anyway when the rates became useless. I just wait until dividends accumulate enough and buy some dividend stock with those proceeds. Works OK.

It's not so bad being senile; you get to meet many more people.

November 3, 2022
7:25 am
MiltonsOwn
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November 3, 2022
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3.25% at the moment. I could not find an answer on the commission/fee question I had as well, as this is not really a mutual fund but access to a hisa. Going through the motions of a purchase to the final screen before submitting shows a commission of $0.00 as opposed to trying the same with a known 'real' mutual fund which shows the $6.95 commission.
Felt ok with this and made purchases - Order status also shows $0.00 commission.

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