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Email this7:41 pm
August 29, 2023
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ISA HISA, Best current rates, British Columbia, lower mainland, Credit Union only.
Have a friend that needs to invest $800,000 on a short term basis in an HISA Account. Will need the funds back on short call so GICs or redeemable GICs may not be a good idea.
Credit union......because they insure, unlimited.
Any ideas or CUs with good rates?
8:11 pm
December 12, 2009
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friskyib said
ISA HISA, Best current rates, British Columbia, lower mainland, Credit Union only.Have a friend that needs to invest $800,000 on a short term basis in an HISA Account. Will need the funds back on short call so GICs or redeemable GICs may not be a good idea.
Credit union......because they insure, unlimited.
Any ideas or CUs with good rates?
1. Do they have an existing self-directed brokerage account?
2. For how long do they plan to save the funds?
If "yes" to Q. 1, my "top pick" would be either the Series A ISA of a Big Five bank and/or a combination of several Big Five banks and Equitable Bank, Equitable Trust, Home Bank, and Home Trust. If their brokerage account is with Scotia iTRADE, Qtrade, or Desjardins Online Brokerage, they have access to Scotiabank's highest yielding Series F ISAs.
If the answer to Q. 1 is "no" and Q. 2 is "less than six months," they are honestly best off with sticking with an easy-to-open digital direct-to-consumer HISA. Tangerine and Simplii Financial have decent promotional interest rates, and the banks themselves are well-capitalized and low risk banks, thus no need to worry about CDIC insurance. 
Cheers,
Doug
11:40 pm
October 21, 2013
Online
Doug's points are worth considering.
I'm not sure a BC CU is the best bet for this situation. Your friend should consider carefully how they will get the money OUT of the FI when they want it. Many FIs make this difficult. Tangerine, for example, has limit of 25K per whatever online (and it's an online bank); this can be circumvented by using a cheque, but then the receiving FI has to be able to accept a large cheque. And, with cheques, you have to wait a week or two for them to clear, maybe longer for a really large one and may depend on credit rating and history with the FI. Wire transfer may be better,but be very careful to get all data correct.
Not as simple as it first appears!
Even if this person doesn't have a brokerage account, it could be a good idea to open one for the ISAs, but definitely choose the brokerage associated with their main big bank, assuming they have one. This should make it much easier to access the money when needed.
Where is the money now?
10:35 am
August 29, 2023
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Loonie said
Doug's points are worth considering.
I'm not sure a BC CU is the best bet for this situation. Your friend should consider carefully how they will get the money OUT of the FI when they want it. Many FIs make this difficult. Tangerine, for example, has limit of 25K per whatever online (and it's an online bank); this can be circumvented by using a cheque, but then the receiving FI has to be able to accept a large cheque. And, with cheques, you have to wait a week or two for them to clear, maybe longer for a really large one and may depend on credit rating and history with the FI. Wire transfer may be better,but be very careful to get all data correct.
Not as simple as it first appears!Even if this person doesn't have a brokerage account, it could be a good idea to open one for the ISAs, but definitely choose the brokerage associated with their main big bank, assuming they have one. This should make it much easier to access the money when needed.
Where is the money now?
Not yet received, proceeds of sale of property.
12:15 pm
October 21, 2013
Online
In that case, one could deposit the money directly into an FI where one intends to invest it or to their brokerage. This will ensure that the funds are available when needed. Lawyer who closes the deal can arrange for wire transfer deposit so no hold. Get the receiving FI to print out details for wire and give that to lawyer so that there is no risk of seller making an error. Be aware that some FI staff don't know that wire transfers are not subject to holds, legally.
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