Canadian High Interest Savings Bank Accounts - Forum: General comparisons

AltaRed on Brokerage investment savings accounts

Fri, 01 May 2026 04:49:48 -0700

Yes, that is a good summary.

I don't care much about missing out on Sat or Sun lack of interest. It's about $5.34 per day before tax based on $100k @ 1.95%. That is a basic Starbucks offering. Buy when one has the money to buy and sell when one needs the money for something else.

Example: I got a stock dividend yesterday that was not posted until this morning May 1st in my BMOIL account. I will simply buy units BMO95142 today knowing full well it won't Settle until Monday afternoon. I have far too many other priorities to expend my time that wringing my hands about that.

Rail Baron on Brokerage investment savings accounts

Fri, 01 May 2026 03:18:32 -0700

AltaRed said
It is the same in reverse. A sale on Friday does not settle until Monday when the cash then becomes available. By definition, interest accrues through the weekend.

It is not complicated. Settlement day (T+1) is driving factor.

So the moral of this story is to sell ISA units on a Friday, when possible, to pick up the weekend's interest and buy ISA units Monday to Thursday, to start earning interest sooner, rather than later.

AltaRed on Brokerage investment savings accounts

Thu, 30 Apr 2026 10:03:56 -0700

It is the same in reverse. A sale on Friday does not settle until Monday when the cash then becomes available. By definition, interest accrues through the weekend.

It is not complicated. Settlement day (T+1) is driving factor.

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!