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Scotia Itrade DYN6004
March 31, 2024
6:18 pm
AltaRed
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Brokerages and Asset Managers don't have Monday off (stock and bond markets are open) so it is hard to know if that info will be transmitted to the brokerage on Monday or Tuesday, and available for view the next day.

March 31, 2024
6:52 pm
savemoresaveoften
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As long as interest gets paid and they pay interest using A/365 or A/366 day count basis, thats all that matters. Dont really care whether is first day of month or not.

March 31, 2024
7:22 pm
zgic
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AltaRed said
Brokerages and Asset Managers don't have Monday off (stock and bond markets are open) so it is hard to know if that info will be transmitted to the brokerage on Monday or Tuesday, and available for view the next day.  

Thanks AltaRed. Good to know. Will check to see when it eventually gets credited. Eager to see "new units" as these will be my first.
Unique end of the month scenario with so many holidays.

April 1, 2024
10:08 am
Doug
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AltaRed said
Brokerages and Asset Managers don't have Monday off (stock and bond markets are open) so it is hard to know if that info will be transmitted to the brokerage on Monday or Tuesday, and available for view the next day.  

Good point, AltaRed. Also, there many brokerages will have a delay from the time the transactions settled to accounts show up in online brokerage accounts (usually a day). It quite likely was Thursday, March 28th, that was the interest payment date, but you may not see that in your transaction history until tomorrow. 🙂

April 2, 2024
9:24 am
kesa
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Entries in my accounts appear April 2, 2024.

Why does iTrade show a different settlement day?

Screenshot-2024-04-02-at-12.19.26 PM.pngScreenshot-2024-04-02-at-12.20.10 PM.png

April 2, 2024
9:52 am
AltaRed
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I doubt anyone knows without understanding back office processes of the two brokerages. Nor does it matter since it does not change the interest nor re-investment calculations which occurred and took effect Mar 28th.

My guess it is just a platform processing (programming) difference on how they manage FundSERV data. Both were 'booked' on account Apr 1st and show in your accounts the next business day (today - Apr 2nd).

There are a number of brokerage transactions that take time to complete, e.g. spinoffs, share buybacks, share consolidations, etc. They can take 5-10 days to appear in online accounts back dated to actual activity date. The delay does not affect the factual accuracy of the transaction.

April 2, 2024
10:28 am
Norman1
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The description of the transaction shown by Scotia iTRADE shows that actual reinvestment date of March 28:

Description Symbol Transaction
Date
Settlement
Date
Account
Currency
Type
BNS INVESTMENT SAVINGS ACCOUNT SR F (6004) REINVEST 03/28/24 @ $1.0000 PLUS FRACTIONS OF … BOOK VALUE $… DYN6004 Apr. 1, 2024 Apr. 1, 2024 CAD CASH DIV

The transaction and settlement dates reflect when the reinvestment was recorded by Scotia iTRADE's system and not when the reinvestment actually occurred.

April 2, 2024
10:55 am
kesa
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Norman1 said
The description of the transaction shown by Scotia iTRADE shows that actual reinvestment date of March 28:

Description Symbol Transaction
Date
Settlement
Date
Account
Currency
Type
BNS INVESTMENT SAVINGS ACCOUNT SR F (6004) REINVEST 03/28/24 @ $1.0000 PLUS FRACTIONS OF … BOOK VALUE $… DYN6004 Apr. 1, 2024 Apr. 1, 2024 CAD CASH DIV

The transaction and settlement dates reflect when the reinvestment was recorded by Scotia iTRADE's system and not when the reinvestment actually occurred.  

that’s a very good catch , thank you

April 2, 2024
2:44 pm
zgic
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@Norman1: Could you please explain to me the concept of this REINVESTED INTEREST which is then shown as Qty. There are always 2 entries for each account.
Also when the date is shown as 03/28/24 is it calculated till 28th or till 31st?

For example:
RENAISSANCE USD HIGH INT SAV ACC SR F U$ (5075) REINVESTED INTEREST AS OF 03/28/24 @ 1.00000 VALUE $231.75
RENAISSANCE USD HIGH INT SAV ACC SR F U$ (5075) REINVESTED INTEREST AS OF 03/28/24 @ 1.00000 VALUE $20.25

Should it not be a straight monthly 1 line entry interest for each account?
Thanks in advance. I really appreciate your precise replies.

April 2, 2024
3:46 pm
AltaRed
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Are there two individual holdings of this ISA in this particular account? There will be a re-invest for each holding. Two holdings can occur for a number of reasons but they should be able to be consolidated with a phone call.

The re-investment happens immediately upon the payment of interest calculated to 3/28/24 . As previously posted, the Renaissance interest cycle is the last business day of each month.

April 2, 2024
4:09 pm
zgic
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AltaRed said
Are there two individual holdings of this ISA in this particular account? There will be a re-invest for each holding. Two holdings can occur for a number of reasons but they should be able to be consolidated with a phone call.

The re-investment happens immediately upon the payment of interest calculated to 3/28/24 . As previously posted, the Renaissance interest cycle is the last business day of each month.  

Just 1 holding of Ren 5075.
So the interest was calculated for only 28 days for March and paid out? So the remaining 3 days interest will be paid out in the May payment?

April 2, 2024
5:19 pm
AltaRed
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zgic said
Just 1 holding of Ren 5075.
So the interest was calculated for only 28 days for March and paid out? So the remaining 3 days interest will be paid out in the May payment?  

To my knowledge, yes. The next cycle is Mar 29-Apr 30th and should show in account May 1st or May 2nd. 33 days in this next cycle if I have done my math right.

April 2, 2024
5:43 pm
Norman1
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zgic said

For example:
RENAISSANCE USD HIGH INT SAV ACC SR F U$ (5075) REINVESTED INTEREST AS OF 03/28/24 @ 1.00000 VALUE $231.75
RENAISSANCE USD HIGH INT SAV ACC SR F U$ (5075) REINVESTED INTEREST AS OF 03/28/24 @ 1.00000 VALUE $20.25

Should it not be a straight monthly 1 line entry interest for each account?

Renaissance HISA's currently have a promotional 0.45% bonus interest on new deposits, from February 12 to June 12. That second entry looks like the bonus interest:

0.45% x $231.75 / 5.15% = $20.25

April 2, 2024
7:41 pm
zgic
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Norman1 said
Renaissance HISA's currently have a promotional 0.45% bonus interest on new deposits, from February 12 to June 12. That second entry looks like the bonus interest:

0.45% x $231.75 / 5.15% = $20.25  

Thanks a lot Norman1. 5.6% interest --- nice. Need to transfer more to REN immediately.sf-laugh

April 3, 2024
4:30 am
savemoresaveoften
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zgic said

Thanks a lot Norman1. 5.6% interest --- nice. Need to transfer more to REN immediately.sf-laugh  

https://www.renaissanceinvestments.ca/products/hisa

It's not 5.6%

April 3, 2024
5:13 am
kesa
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zgic said

Thanks a lot Norman1. 5.6% interest --- nice. Need to transfer more to REN immediately.sf-laugh  

Norman1 said

zgic said

For example:
RENAISSANCE USD HIGH INT SAV ACC SR F U$ (5075) REINVESTED INTEREST AS OF 03/28/24 @ 1.00000 VALUE $231.75
RENAISSANCE USD HIGH INT SAV ACC SR F U$ (5075) REINVESTED INTEREST AS OF 03/28/24 @ 1.00000 VALUE $20.25

Should it not be a straight monthly 1 line entry interest for each account?

Renaissance HISA's currently have a promotional 0.45% bonus interest on new deposits, from February 12 to June 12. That second entry looks like the bonus interest:

0.45% x $231.75 / 5.15% = $20.25  

Interesting. This bonus appears to be 2 months old. My first sighting of it.

April 3, 2024
7:48 am
mikee
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The issue with Scotia Itrade is the settlement date and when funds are actually available. If the distribution is reinvested, it does not matter if the transaction is backdated. However, if you wanted to withdraw the distribution, it is not available until the following day, backdated by 1 day to make it appear that it was paid on time. The same applies to a sell order. Dividends are also posted and available 1 day after the payment date....or as I was told at 23:59 on the due date which is the following day. Scotia has use of client funds for 1 day interest free as it is not possible to withdraw the funds on the day they are due. The time value of money works in their favour. The agent I spoke to at Itrade recently admitted that Itrade has received complaints about this. At Royal Bank Direct Investing, dividends are posted and available for withdrawal on the payment date. If you initiate a transfer to pay for a DYN purchase after their cutoff time of 13H, they will charge an overdraft fee. Does anyone know if there are any regulations regarding when brokerage firms must credit accounts when dividends or payments are due. In the old days, dividend cheques were sent by mail, post dated a few days before the payment date.

April 3, 2024
8:51 am
AltaRed
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It is not clear to me that any brokerage is different. I have ISAs at Scotia iTrade and BMO Investorline, and spouse has an ISA at RBC Direct Investing. No brokerage I know posts distributions online on transaction date because the information isn't available from the ISA provider until the next day (settlement day) and settlement time (receipt of funds into the brokerage) is not early in the day on settlement day. Unless the settlement funds are being used to buy another holding within the brokerage that day, the funds for cash withdrawal (transfer out) are simply not available until at least after COB on settlement day and most likely not until the following morning.

The same is true for buy and sell which is T+1 in any event in the FundSERV system under which these ISAs are bought and sold.

If folks are tore up about how the FundSERV system works, and how brokerages work, and are fussed about the 1 day delay, I suspect they should simply stick to digital banks. FWIW, Money Market mutual funds and Cash ETFs in brokerages work exactly the same way. Funds are not available for withdrawal (transfer out) until the day following settlement day.

Added later: For ourselves, the proceeds of ISAs, whether interest or the sale of units themselves are either re-invested within our brokerage accounts (can be done the same day as settlement day) or is cash to be transferred out for cash flow expenses. It is immaterial to us whether we transfer that cash out on settlement day, the day after settlement day, or a week after settlement day.

April 3, 2024
8:54 pm
Norman1
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Dividends are not quick either.

Dividends are declared weeks or months in advance. The record date is weeks before the payment date. For example, the May 24 Bank of Montreal common dividend will be paid to those holding the shares at the close of business April 29. The dividend is not paid to those who are holding the shares May 22 or May 23.

April 4, 2024
4:56 am
kesa
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mikee said
...Scotia has use of client funds for 1 day interest free as it is not possible to withdraw the funds on the day they are due. The time value of money works in their favour. ...  

we are on the same page.

if it were unprofitable for the FI this surely would change.

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