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HISA rate change
September 13, 2022
8:57 am
Lodown
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Norman1 said
2% is a sign that LBC Digital is not really that interested right now in much more savings deposits.

The TD and Royal Bank ISA's are leading. But, unfortunately, many of the brokerage ISA's are still around 2¼%:

ISA Rate
TD Investment Savings Account, Series A (TDB8150) CAD 2.85%
RBC Investment Savings Account, Series A (RBF2010) CAD 2.75%
Home Trust High Interest Savings Account, Class A (HOM100) 2.35%
Equitable High Interest Savings Account, Series A (EQB1000) CAD 2.30%
Scotiabank Investment Savings Account, Series A (DYN6000) CAD 2.25%
BMO High Interest Savings Account (BMT104) CAD 2.25%
Renaissance High Interest Savings Account, Series A (ATL5000) CAD 2.25%

  

Thanks. Are there any buy/sell charges or any other fees with these brokerage ISAs?

September 13, 2022
10:36 am
AltaRed
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No buy/sell commissions in any of the big discount brokerages that I am aware of. All of these Series A ISAs pay a 15-25bp trailer fee on a quarterly basis and that is the basis of 'zero' commissions.

However, as I previously mentioned, there might be a minimum 90 day hold (to avoid an early redemption penalty) for third party ISAs. For example, DYN6000 is an in-house ISA for Scotia iTrade brokerage accounts and there is no fee of any kind for any purpose. However, it is possible that if I bought EQB1000 in my Scotia iTrade account, I might have to hold it for a minimum 90 days to avoid an early redemption penalty.

One other consideration. All of these ISAs have minimum initial purchases of generally at least $1000 and then followup minimums of $50-100. This may vary from brokerage to brokerage. IIRC, the minimum initial purchase of EQB1000 is $5000 at Scotia iTrade. This may vary from brokerage to brokerage.

September 13, 2022
10:46 am
AltaRed
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I notice BTB100 is now at 2.75%. That is quite a bit more than LBC Digital's HISA at 2% which says LB is more interested in attracting funds (or stopping any bleed) through the brokerage channel than it is through the LBC Digital retail channel.

Chatter on these brokerage ISAs has increased significantly the last month or so because their rates tend to follow BoC overnight rates a bit more closely than many online bank HISA rates. There wasn't any chatter at all when BoC overnight rate was 0.25% and these brokerage ISAs were only paying 0.2-0.25%. As with everything, times change and they will change again on the way back down when interest rates decline in the future.

I don't think I would open a DIY discount brokerage account just to capture current ISA rates unless there were other reasons to have an investment brokerage account, e.g. purchase of mutual funds, ETFs, bonds, etc. Most brokerages today charge $135-150 to close accounts and also have $15-25k minimums to avoid quarterly account administrative fees.

September 13, 2022
8:59 pm
Lodown
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Thanks. I have a QTrade trading account and could not find an ISA account code that works in QTrade. My desire is to park cash in the account while waiting for a new investment opportunity.

September 13, 2022
10:14 pm
Norman1
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Does Qtrade no longer allow the ones mentioned in previous thread HISA at Qtrade currently available?

Qtrade FAQ Which Money Market or High Interest Saving Account (HISA) funds can I buy? suggests the series F or class F ones should be allowed.

September 13, 2022
10:20 pm
Lodown
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I meant to state " I could not find a TD ISA account code".

September 13, 2022
10:24 pm
Norman1
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How about one of these series F ones from TD that currently yield 3%?

TDB8151 TD Investment Savings Account - F Series
TDB8156 TD Investment Savings Account (TDMC) - F Series
TDB8158 TD Investment Savings Account (TDPMC) - F Series
TDB8160 TD Investment Savings Account (CTC) - F Series

Full details of the TD A-series and F-series ISA's are at TDAM: Additional Solutions.

October 21, 2022
6:55 am
hwyc
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HISA 3.00%, rate effective as of close of business on October 20, 2022 (LBCdigital.ca & B2Bbank.com)

October 21, 2022
7:33 am
picassocat
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As far has having my money in a savings thru a brokerage firm, I presently chose the Evolve High Interest Savings Account Fund ETF at 3.74%

The following article, a bit dated, from the Globe & Mail, may be useful to shop for a good brokerage HISA account.

https://www.theglobeandmail.com/investing/article-is-now-a-good-time-to-buy-a-high-interest-savings-etf/?fbclid=IwAR3IlwSPLR5mdOaBRWO1MwEnvSyArSYa26WzAZtld7H46TkBXqrZKZxhkHM

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