# Parking cash in CIBC Investor's Edge



## crgf1k (Aug 8, 2015)

So I'm selling off stock and plan to magically time the market haha. I've got a good GIC ladder going and an EC Bank savings account. I'll have some money left over in my Investor's Edge RRSP, TFSA and LIRA. 
I see that I can buy a "CIBC Flexible GIC" at 0.45% in Investor's Edge, which has a one-year term, and you can take the money out anytime. If you take it out before 29 days, you get no interest. After 29 days, you get full interest you've earned up to that point (at least that's my understanding). 
Two questions: 
Am I correct that this seems like a great way to park cash if I feel I may need to buy stocks in the next year?
Is each CIBC account CDIC insured for $100k separately, or is that $100k all accounts added together?


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## like_to_retire (Oct 9, 2016)

crgf1k said:


> Am I correct that this seems like a great way to park cash if I feel I may need to buy stocks in the next year?
> Is each CIBC account CDIC insured for $100k separately, or is that $100k all accounts added together?


No, that's a poor way to park cash at CIBC. Every brokerage today offers an HISA (High Interest Savings Account) that you purchase just as you would a mutual fund. There are no fees, as they're baked in.

I believe the HISA for CIBC is ATL5000. It presently pays 0.85%

Every account is individually insured by CDIC.

ltr


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## crgf1k (Aug 8, 2015)

like_to_retire said:


> No, that's a poor way to park cash at CIBC. Every brokerage today offers an HISA (High Interest Savings Account) that you purchase just as you would a mutual fund. There are no fees, as they're baked in.
> 
> I believe the HISA for CIBC is ATL5000. It presently pays 0.85%
> 
> ...


Wow thanks! I just put an order in for some. Funny how none of my CIBC "advisors" never mentioned that to me over the past decade.


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## gocanada (Jan 3, 2014)

Depending on your trading costs, the Purpose High Interest Savings ETF (PSA) might be a good option as well.


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## james4beach (Nov 15, 2012)

Yeah it might be worth calculating which one is better for you. Purpose (PSA) pays 1.0% whereas ATL5000 pays 0.85%. You'll have to calculate the trading costs for each and see which one works out better for you.


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## like_to_retire (Oct 9, 2016)

james4beach said:


> Yeah it might be worth calculating which one is better for you. Purpose (PSA) pays 1.0% whereas ATL5000 pays 0.85%. You'll have to calculate the trading costs for each and see which one works out better for you.


Yeah, but at a minimum, everyone that has a discount brokerage account needs to have an in-house HISA to sweep cash into. It's a must.

Sure, the OP may have a one time need where a PSA will do a slightly better job in that circumstance , but it's pretty obvious that they had no idea an HISA even existed until this thread.

Lets not take the OP down the wrong road.

ltr


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## james4beach (Nov 15, 2012)

like_to_retire said:


> Sure, the OP may have a one time need where a PSA will do a slightly better job in that circumstance , but it's pretty obvious that they had no idea an HISA even existed until this thread.
> 
> Lets not take the OP down the wrong road.


Good point. Starting with the HISA is essential.


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## Eclectic12 (Oct 20, 2010)

crgf1k said:


> Wow thanks! I just put an order in for some. Funny how none of my CIBC "advisors" never mentioned that to me over the past decade.


Usually with a discount broker like Investor's Edge, there are are just customer reps who may or may not be aware of all the choices. If they have useful info that's great but I didn't think there was an expectation of an "advisor".

The other question is when ATL500 was started. So far, the farthest back I can find articles mentioning these types of products are 2010. The advice used to be to use money market funds until they returned less than the newer HISA MFs.




james4beach said:


> like_to_retire said:
> 
> 
> > Yeah, but at a minimum, everyone that has a discount brokerage account needs to have an in-house HISA to sweep cash into. It's a must.
> ...


I agree that ATL5000 should be the first priority. A smaller payout of 0.85% instead of 1.00% is likely well worth it where there are no trading costs or time commitment. It is also likely still a great option for sweeping cash into.

The OP can take their time figuring out if their needs fits PSA or other choices for their needs.


Cheers


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## Eder (Feb 16, 2011)

How hard is it to transfer to a credit union HISA? Maybe 3 days total for double the yield?


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## getliquid (Mar 2, 2014)

james4beach said:


> Yeah it might be worth calculating which one is better for you. Purpose (PSA) pays 1.0% whereas ATL5000 pays 0.85%. You'll have to calculate the trading costs for each and see which one works out better for you.


I already have ATL5000 with Investors Edge which has no trading fees correct? where the PSA ETF is $9.95 per trade? I assume the settlement days is both 2 days? 

Is it correct to say ATL5000 count as cash balance for example if I bought $10000 stocks with $5000 balance and $5000 HISA, I would not be charged margin interest? where for the PSA it would be in negative margin balance?


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## getliquid (Mar 2, 2014)

like_to_retire said:


> No, that's a poor way to park cash at CIBC. Every brokerage today offers an HISA (High Interest Savings Account) that you purchase just as you would a mutual fund. There are no fees, as they're baked in.
> 
> I believe the HISA for CIBC is ATL5000. It presently pays 0.85%
> 
> ...


its insured per fund or Investors edge account?
If I have $100K worth of equities insured by FDIC
$100K ALT5000 insured by CDIC?
$100K cash balance insured by CDIC or FDIC?


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## Eclectic12 (Oct 20, 2010)

Eder said:


> How hard is it to transfer to a credit union HISA? Maybe 3 days total for double the yield?


Don't know about credit unions but one of the online banks says five days where some others seems to be two days.

The OP says "Investor's Edge RRSP, TFSA and LIRA". The RRSP/LIRA are likely around 30+ days after the transfer paperwork is filled out, with typically around $100 transfer/withdrawal fee. The TFSA can have transfer paperwork done as well, with typically a smaller transfer/withdrawal fee. Some avoid the TFSA fee by withdrawing in Dec then putting the $$ into the second TFSA in Jan the following year.

For the registered accounts, it is not clear that transfers are the way to go.




getliquid said:


> I already have ATL5000 with Investors Edge which has no trading fees correct? where the PSA ETF is $9.95 per trade? I assume the settlement days is both 2 days?


I believe I have seen in write ups that ATL5000 will have no trading fees or holding period with Investor's Edge but they can confirm. They can also confirm the settlement time. For my broker, their flavour of HISA MF settles next business day, as long as the order is placed before the MF trading deadline.




getliquid said:


> ... Is it correct to say ATL5000 count as cash balance for example if I bought $10000 stocks with $5000 balance and $5000 HISA, I would not be charged margin interest? where for the PSA it would be in negative margin balance?


I suspect so as that is the way it works at my brokerage. Where the order for $9K of stock goes in where only $5K is cash, a warning that the HISA MF has to be sold is part of the order process but the order goes through. Maybe a IE client can confirm?

The PSA ETF likely will not be seen as cash so it would change the flexibility somewhat.


Though when you mention margin - that confuses me as your OP talks about registered accounts, where I don't believe margin would be available to you. 


Cheers


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## Beaver101 (Nov 14, 2011)

Eclectic12 said:


> ...
> 
> I believe I have seen in write ups that ATL5000 will have no trading fees or holding period with Investor's Edge but they can confirm. They can also confirm the settlement time. For my broker, their flavour of HISA MF settles next business day, as long as the order is placed before the MF trading deadline. ...
> Cheers


 ... ATL5000 has no trading fees and settles next business day.

RE OP's post:



> its insured per fund or Investors edge account?
> If I have $100K worth of equities insured by FDIC
> $100K ALT5000 insured by CDIC?
> $100K cash balance insured by CDIC or FDIC?


 ... equities are not insured by FDIC/CDIC. 

ALT5000 (C$ only) is eligible / insured by CDIC up to $100K as with cash balance and GICs.


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