Deposit Rates: ING etc. (2009)

[squash500]

TDW has recently added DYN 500 presently paying 2.55% to the mix . DYN 500 stands for Dundee Investment savings account. Similar to MIP 510 which is also at present paying 2.55%. No transaction fees for either choice.

IMHO, for safe cash these two choices seem to be the best alternatives with GIC rates being so low. I would like to wish everyone on FWF a happy new year .

[$seeker]

I was looking at IFA Canada site and they show DYN 500 as their one year fixed selection so it should be a decent option

[Okanagan]

When buying DYN500 through TDW - it appears you have to phone in the order vs. buying online - when I tried to place order online it indicated only sell orders may be placed??

Perhaps you could clarify this for me. Thanks

[squash500]

When buying DYN500 through TDW - it appears you have to phone in the order vs. buying online - when I tried to place order online it indicated only sell orders may be placed??

Perhaps you could clarify this for me. Thanks

With TDW, you do have to phone in the order. For some reason, you can't buy either MIP 510 or DYN 500 online. I thought sell orders on these two securities had to be placed with a TDW rep as well?

When you key in both these securities on symbol lookup on Webbroker nothing comes up. Sometimes even when you call the TDW reps they don't even know the rates for the MIP 510 or DYN 500 themselves .

I'm just speculating here . ISTM, that the TDW reps sometimes are promoting the tdb 164----TD mmf instead even though it's only yielding 1.43% . I guess that's TDW for you .

[Bylo Selhi]

When you key in both these securities on symbol lookup on Webbroker nothing comes up.

I get the message "The symbol that you entered is not valid" even when selling from an existing position. D'oh! (So how did I buy it in the first place and how did it manage to show up in my holdings if the symbol is invalid?)

You have to phone and ask to buy/sell MIP510. As you have experienced they often don't even know what it is, never mind the current interest rate (from the horse's mouth.) Every time I ask when that fund will be available on WebBroker the agent beetles off to ask a superior then comes back and mumbles some bullshit about how they're working on it. Yeah, even as recently as a couple of weeks ago -- several years after they started offering MIP510 -- they're still working on it

[squash500]

You have to phone and ask to buy/sell MIP510. As you have experienced they often don't even know what it is, never mind the current interest rate (from the horse's mouth.) Every time I ask when that fund will be available on WebBroker the agent beetles off to ask a superior then comes back and mumbles some bullshit about how they're working on it. Yeah, even as recently as a couple of weeks ago -- several years after they started offering MIP510 -- they're still working on it.

Bylo, you're 100% right . I think that the TDW reps have been told to try to promote the tdb 164 instead. The reason being obviously that the td mmf is of course an affiliate with TDW. Therefore, more fees for the TD subsidiaries I could be totally wrong on my speculation . However, it has happened to me personally when a couple of tdw reps have suggested the tdb 164 eventhough at the time the yield on the tdb 164 was much less then the mip 510 .

As you correctly stated whenever I mention the mip 510 most tdw reps get all flustered .

[pmj]

For some time I've been using TDB164 until I accumulate $1000, then moving it over to MFC298. But MFC298 has been dropping - 3.5% at the beginning of March, around 2.65% in September, 2.3% at the beginning of December, to a current rate of 1.43%. I'm guessing the rate is set ?every day? based on market conditions?

So I've just been checking out MIP510. The rate doesn't seem to change too often, if this page is complete:
http://www1.manulifebank.ca/Rates/histo ... Rates.html - see Investment Savings Account about half-way down:

19-Mar-08 3.100%
08-May-08 3.000%
18-Nov-08 3.050%
10-Dec-08 2.550%

In all probability, MIP510 might drop soon - but it does seem to maintain a premium of about 0.5% over MFC298.

Is there anywhere that can be used to search daily rates? I know how to find daily rates at GlobeFund - but only for a particular fund. And I haven't yet anywhere found historical daily rates - I back-calculated the above MFC298 rates from our returns.

[IdOp]

I think the TD-Waterhouse agents are mainly order-takers, not advice givers, so it's not surprizing they just direct people to TDB164. For better advice from TDW about current yields on mutual funds call the FundSmart line, 1-800-461-3863. In my experience they have been good about looking through their yield tables and pointing out non-in-house funds.

I don't know if it's the current "best", but Royal's C$ MMF, RBF271, is yielding around 2.22 %. Better than MFC298 but not as good as MIP510 (more convenient though).

[Doug]

Money transfers into my ING account have a hold on them for up to 7 business days. For my TD account, I haven't had any holds. Is one of the reasons that ING has higher interest is that an ING bank account has characteristics of a 7 day CD? Similarly, Peoples Trust offers higher interest yet than ING. However, its holding period is longer than ING. Once again, is a Peoples Trust banking account more like a ultrashort term CD? These holding periods will dissuade someone who might need that money within 7 (or more for Peoples Trust) business days from having an account.

[Serdic]

I think the TD-Waterhouse agents are mainly order-takers, not advice givers, so it's not surprizing they just direct people to TDB164.

Since my statement says that I have an "Order Execution account. No advice or recommendations given", I'll be interested to see if they direct me to TDB164 when I phone and place my order for dyn500.

By the by, Dyn 500 is listed as yielding 2.35 at the time of this posting.

[pmj]

MIP510 dropped today to 2.300%
Yesterday's yields of the other contenders:
DYN500 2.35% (thanks Serdic)
RBC271 2.19%
MFC298 1.48%
TDB164 1.33%

So why does RBC do so much better than TDB It's consistent over a long period

Here's a link to current and historic rates at DYN500 - dropped to 2.35% yesterday.
It's listed at GlobeInvestor - but only with 1 star 'cos Globe doesn't seem to know about the dividend payments

(edited to add DYN500 info)

[Shakespeare]

RBF1002 ($10K minimum) is showing 2.4%.

[adrian2]

Money transfers into my ING account have a hold on them for up to 7 business days. For my TD account, I haven't had any holds. Is one of the reasons that ING has higher interest is that an ING bank account has characteristics of a 7 day CD?

You still get the full interest due during the hold period. How many times do you need all the money you have in the account during the next 7 business days starting from the deposit date?

[Serdic]

RBF1002 ($10K minimum) is showing 2.4%.

Stupid question; do you know if that's available through TDW? From Bylo's upthread linkage, my assumption would be yes, since it's an RBF.

No Transaction Fee... Royal Mutual Funds (RBF)

I'm further assuming that I'd have to call TDW to place the order, as is the case for MIP510 and DYN500, as the symbol comes up invalid in WebBroken (sic.).

Are these assumptions correct? I'm happy to confirm on my own at the start of Feb, just checking if someone knows ahead of time.

[Shakespeare]

do you know if that's available through TDW?

No I don't. It may only be available from RBC.

[Serdic]

Ok, thanks - I'll check and report back.

[Bylo Selhi]

Ok, thanks - I'll check and report back.

Mutual Fund Name Load Type Symbol
RBC CANADIAN MONEY MARKET No Load Canadian Money Market RBF271
RBC CANADIAN MONEY MARKET FUND Back Load Canadian Money Market RBF112
RBC CANADIAN T-BILL No Load Canadian Money Market RBF262
RBC PREMIUM MONEY MARKET No Load Canadian Money Market RBF447

When I plugged RBF1002 into the Buy screen I got the same "The symbol that you entered is not valid" that I get with MIP510

Meanwhile RBCDI accepts the order for $10k of RBF1002 quite happily. Everyone needs multiple discount brokers

[Happyboy]

RBCDI's e-account is showing 2.5% so I've been leaving cash there rather than RBF1002.

[Shakespeare]

RBCDI's e-account is showing 2.5% so I've been leaving cash there rather than RBF1002.

The e-account isn't accessible for RRSP funds.

[banker]

When you key in both these securities on symbol lookup on Webbroker nothing comes up.

I get the message "The symbol that you entered is not valid" even when selling from an existing position. D'oh! (So how did I buy it in the first place and how did it manage to show up in my holdings if the symbol is invalid?)

You have to phone and ask to buy/sell MIP510. As you have experienced they often don't even know what it is, never mind the current interest rate (from the horse's mouth.) Every time I ask when that fund will be available on WebBroker the agent beetles off to ask a superior then comes back and mumbles some bullshit about how they're working on it. Yeah, even as recently as a couple of weeks ago -- several years after they started offering MIP510 -- they're still working on it

Its not going to be offered online anytime soon.

[Taggart]

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Become a member at our NEW Citizens Bank Toronto Boutique on Front Street before March 31st and get up to $100.*

[broke]

Pc financial Interest Plus account lowered to 2.25%.

TFSA at PC account still at 3.05%


So far, Ing ISA Ivestment Savings Account still at 2.70%

Ing TFSA still at 3.0%

The savers suffers the sins of the spenders.

EDIT: bolded above has been added for clarity. :oops:

[Clock Watcher]

The savers suffers the sins of the spenders.

I don't have much in savings, but I look at my parents who struggled and saved, and now they are treated like dirt, subsidizing those who took unreasonable risks, and it kinds of rubs me the wrong way. Not investment-wise of course, but philosphically.

Investment-wise, I notice that some countries are paying significantly higher interest rates (such as Australia). For large portfolios I wonder if some kind of currency hedging strategy will allow one to capture the higher rates with essentially the same risk as buying Canadian bonds?

BTW, it is interesting how the banking index took care of the huge spread in credit default swaps that developed last week in a single day (yesterday) - it reminded me of October and November all over again. I was wondering when it would happen, but didn't have the guts to get put options. The banking index is now 31% below its Nov low.

[adrian2]

Investment-wise, I notice that some countries are paying significantly higher interest rates (such as Australia). For large portfolios I wonder if some kind of currency hedging strategy will allow one to capture the higher rates with essentially the same risk as buying Canadian bonds?

Currency hedging theory and practice would tell you that you do not gain anything by keeping your savings in hedged A$ compared to C$.

[Descartes]

Pc financial Interest Plus account lowered to 2.25%.

TFSA at PC account still at 3.05%


So far, Ing still at 2.70%

ING has been at 3.00% since January 11th.