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Investment Savings Account (ISA) Interest Rates
December 24, 2022
7:07 am
ca-tech-fire
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Hotspur, I'm not sure what kind of Scotia account you have, but if you don't already have one, it's better to deposit from your TD chequing account using bill pay.

If you go with a promotion, and say you put in $100,000 in itrade, and place it in DYN6004, you will not be able to withdraw the distributions because those will be counted against you in the promo. Itrade adds up all the contributions in the time period to July and any money taken out of the account until July counts against the 100k you put in. So for the promo to work, you have to keep the money in there until the promo bonus is paid out.

Next, to withdraw money you need to either have a Scotia account which will incur fees or force you to keep minimum balances. However, ITrade has a PDF form you can fill out to do an EFT to your TD account. You just search for it in the documents section.

As others have said, inactivity fees won't apply because of your minimum account balance. I'm happy to answer more question.

December 31, 2022
10:03 am
Hotspur
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Thanks for the advice ca-tech-fire.

I think Bill Pay has daily limits - I'm not sure. TD USA has a limit of $75,000 and my transfer would be a hefty 6 figure sum. Getting a draft or certified check is free at my TD (Canada) account, and the Scotia branch is a 2 minute walk on the other side of the street. I therefore do not see the advantage of using Bill Pay unless you can enlighten me.

That is excellent advice re. the promo. I never even thought about the consequences of withdrawing monthly distributions untll the beginning of July. Where did you learn about this? Did you work in a bank or are you just good at reading the small print?

I've had the Ultimate Package Account with Scotia for 2 years. My balance is over $5000 and I do not therefore incur any fees. There's a reason why I hold this account - a solid investment much to my advantage.

December 31, 2022
10:31 am
Norman1
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Withdrawals during the period only makes a difference if they cause one to drop to a different offer tier.

The Scotia iTRADE offer Qualifying Amount tiers are

  • $1,000
  • $5,000
  • $25,000
  • $50,000
  • $100,000
  • $500,000
  • $1,000,000

For example, if one transfers in $320,000 and withdraws $20,000 before July 2023, one is still in the $100,000-$499,999 tier that qualifies for a $500 reward:

Qualifying Amount calculation condition: Qualification will be based on combined net new assets in all eligible accounts held by a client. If you withdraw or transfer out assets from any of your Scotia iTRADE accounts at any time during the period between your enrollment and June 30, 2023, the amounts of such assets will be subtracted from the value of your Qualifying Assets for the purposes of determining your entitlement for the specific tier of cash reward and for the $6.99 commission pricing on stock and ETF trades. If you qualify for the commission of $4.99 per trade, your entitlement will not be affected by this offer.

December 31, 2022
11:59 pm
Hotspur
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That's my understanding Norm1

Although I think what cal-tech-fire may be referring to is if you transfer $100,001 for the potential $500 reward into a new iTRADE account (DNY6004) and transfer the monthly interest from iTRADE to (my) Scotia Ultimate Package account they will deduct said amount from the $100,001 and you will not get the - at least the 500 amount - reward in July. You'll get what is rewarded for the next tier (under $100,000).

Maybe cal-tech-fire knows something we don't?

January 1, 2023
9:06 am
Doug
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Note these typical new customer/new money promotional offers are generally exclusive of any transfer out fee reimbursement offers. sf-cool

Cheers,
Doug

January 2, 2023
9:45 am
Hotspur
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"exclusive of any transfer out fee reimbursement offers".

I don't know what this means.

January 3, 2023
9:41 pm
RetirEd
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I think it means that if you are transferring assets into a promotional account, don't expect any transfer or redemption fees to be reimbursed.
RetirEd

January 22, 2023
6:32 pm
digitalsky
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Hi everyone! 1st post here.
I wish I came across these accounts 10 years ago. I used to use Questrade as my main brokerage for my non-register/TFSA/RESP/RRSP account (where pretty much all my portfolio is), but have changed over to Interactive Brokers in the last 2 years. I was uncertain about the stock market last few years and had a large portion of cash just sitting in those accounts earning me nothing.

Now that I know about these ISA, I obviously want to take advantage of them (mainly the Scotia bank one) for my cash in my TFSA/RRSP accounts. However, since I can't buy these ISA from IBKR, does that mean I have to fill in the form to transfer out my cash from IBKR once I have an iTrade account? I'd imagine I can transfer from RRSP->RRSP without counting it as withdrawal/contribution?

Also, with the Manulife ISA, it says I can only buy it through and advisor. Never had an advisor, so I'd imagine every time I want to make a transaction, I have to go through them? Or do I just need them to do the initial set up and then I can manage the account myself afterwards?

Thanks for your help in advance!

January 23, 2023
6:08 am
Bill
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Any amounts you want transferred from Interactive to iTrade (it appears you're keeping your Interactive accounts open) is done from iTrade end, contact them re how to do it once your iTrade accounts are open. Make sure any registered funds go directly from Interactive registered account to iTrade registered account. Ask them if they'll reimburse you any transfer fees Interactive charges you, they normally do if your business is large enough. Don't have to tell Interactive anything.

If iTrade offers Manulife MIP510 & 710 (I don't know if it does) then you should be able to buy them yourself online, no advisor, once your iTrade accounts are open and funded. They have to be bought as mutual funds even though they're not.

January 23, 2023
6:36 am
Norman1
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If one does open Scotia iTRADE accounts, be sure to use offer code C23 for their current promotion. One can receive a bonus if the transfer is completed by March 31:

Qualifying Amount Reward
$1,000 - $4,999 $50
$5,000 - $24,999 $100 + $6.99 commission pricing
$25,000 - $49,999 $150 + $6.99 commission pricing
$50,000 - $99,999 $200 + $6.99 commission pricing
$100,000 - $499,999 $500 + $6.99 commission pricing
$500,000 - $999,999 $1,000 + $6.99 commission pricing
$1,000,000 + $2,000 + $6.99 commission pricing
January 23, 2023
6:50 am
Norman1
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According to their FAQ, the Manulife ISA's require a dealer, not an advisor:

How do I open an Investment Savings Account for my clients?
Deposits to the Investment Savings Account must be made through FundServ, the investment fund trading system.

What are the Investment Codes for this account?
MIP510 Manulife Bank ISA
MIP610 Manulife Bank ISA F-Class
MIP511 Manulife Bank US$ ISA
MIP611 Manulife Bank US$ ISA F-Class
MIP710 Manulife Trust ISA
MIP810 Manulife Trust ISA F-Class

What do I do if my dealer doesn’t offer the Investment Savings Account?
Before a dealer can offer an Investment Savings Account, they must contact Manulife Bank. Please ask your dealer to contact Manulife Bank at 1-800-… to establish the distribution arrangement.

January 23, 2023
7:48 am
Bill
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I noticed when I first tried to buy the Manulife products in my CIBC Investors Edge account it doesn't let me, message gives me the impression they're not available. I tried again, this time selecting the option of having monthly interest reinvested instead of paid out and it worked.

Also in my Investors Edge account I can buy DYN5000 & 6000 but not the other DYN series ISAs that are offered by other than Scotia. At least I haven't figured out a way yet.

Point being sometimes it's finicky using a big bank discount broker to buy ISAs offered by other providers.

January 23, 2023
8:39 am
AltaRed
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Not all brokerages will offer the full range of ISA offerings (either limited by the brokerage or the issuer) and at least since of the big bank brokerages will restrict offerings to their own in-house Series A ISAs, never mind their Series F trailer fee options. This has been discussed quite extensively in ISA threads.

It is what it is. Accept it from your brokerage or move on.

January 23, 2023
3:57 pm
Norman1
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I tried a few at Scotia iTRADE. The ISA offerings seem to be in flux right now.

I was able to go as far as being asked to confirm the order with MIP510 (Manulife Bank ISA) at Scotia iTRADE. But, not with MIP610, its class F flavour.

Surprisingly, Equitable Bank ISA offerings EQB1000 (Series A) and EQB1001 (Series F) got as far as asking for confirmation!

January 23, 2023
5:57 pm
Bill
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In Investors Edge I only tried the two Manulife listed on Mr Thrifty site, MIP510 & 710, and as I said I was able to purchase only after I selected the reinvest monthly payout option.

January 23, 2023
6:57 pm
AltaRed
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It has never occurred to me over the years to consider anything other than the re-invest option.

January 23, 2023
7:32 pm
Bill
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Well there you go, something new to consider!

January 23, 2023
11:03 pm
digitalsky
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Thank you Bill and Norman1. Glad to hear the Manulife ones are available from other brokerages and the promo with iTrade.

I do intend to buy these ISA while I wait for opportunities with stocks, so when I do see an opportunity, I do want to sell the ISA and buy stocks. If I move the funds over to iTrade, then my stock trade will have to go with it since it won't be feasible moving the money back and forth brokerages, unlike bank accounts.

I'll look into the riskier ETFs to see if I want to go with those instead for funds I intend to eventually trade stocks with.

January 24, 2023
7:08 am
Norman1
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At Scotia iTRADE, the best ISA's are the Scotiabank ones, series F, like DYN6004 (Bank of Nova Scotia) and DYN5004 (The Bank of Nova Scotia Trust Company).

They yield 4¼%.

January 30, 2023
12:30 pm
Hotspur
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Scotia DYN6004 raised to 4.5% this morning
https://ads.scotiabank.com/Rates

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