# TD Investment Savings Accounts



## Dibs (May 26, 2011)

So it seems that TD has made available some "Fund-based" investment savings accounts similar to those offered by RBC or CIBC's Renaissance line.

http://www.tdam.com/Content/Products/p_LandingPage.asp?PID=27

At the moment there is very little else that I can find on the official website about these funds. To me it seems like they are not trying hard to advertise it. 

From the terms and conditions, it doesn't look that bad. There are no comissions (although they reserve the right to change this anytime). It is CDIC insured, requires a minimum investment of $1000, and is available for registered and non-registered accounts. There is, howerver, a clause about a 0.25% Dealer compensation. The rates are 1.25%-1.5% at the moment.

I found some threads on other forums and it seems like these funds are purchasable through TD Waterhouse. 

Some questions:
1. Has anyone here used these savings accounts? 
2. Would the 0.25% dealer compensation be applied if they were bought through TD Waterhouse?
3. Does anyone know what is the difference between the regular and the F-series accounts? (aside from the different interest rates)

I've been looking for a place to park my cash in TDW and this may well be a nice choice.


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## CanadianCapitalist (Mar 31, 2009)

1. I've used ATL5000 but not the TD funds.
2. Yes. The interest rate advertised is net of dealer compensation. Other savings accounts work exactly the same way.
3. F-Series can only be purchased through an advisor.

http://www.canadiancapitalist.com/high-interest-savings-accounts-at-discount-brokers/


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## DanFo (Apr 9, 2011)

I got some cash in tdb8150...rates @ 1.25% for the moment ..no issues as of yet


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## gibor365 (Apr 1, 2011)

This sounds interesting.
What I don't understand
1. What is difference between:
TD Investment Savings Account 1.25% 
TD Investment Savings Account (TDMC) 1.25%
TD Investment Savings Account (TDPMC) 1.25% 
TD Investment Savings Account (CTC) 1.25% 

2. Is purchase/redemption is free? Any time?
3. The minimum deposit is $1000. So, can I depossit $1000 and 1 week after redeem $500? Or I have to keep at lease $1000?


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## Dibs (May 26, 2011)

gibor said:


> This sounds interesting.
> What I don't understand
> 1. What is difference between:
> TD Investment Savings Account 1.25%
> ...


1. The savings accounts are offered by four parts of TD Asset Management, being The Toronto-Dominion Bank, TD Mortgage Corporation (TDMC), TD Pacific Mortgage Corporation (TDPMC) and The Canada Trust Company (CTC). The maximum balance allowed varies among the four (5 million for TD and 150k for the rest)

2. I tried putting the fund name in the purchase page of TD Waterhouse, and it comes out with no comissions, so I guess it is free..

3. Not sure.


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## CanadianCapitalist (Mar 31, 2009)

1. These are all offerings by subsidiaries of TD Bank. If you want to park more than $100K, you can do so by splitting it between these three accounts.

2. I haven't transacted with TD Investment Savings Account but I have bought and sold ATL5000. No fees at any time.

3. I believe so.


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## TDCanada (Mar 17, 2011)

gibor said:


> This sounds interesting.
> What I don't understand
> 1. What is difference between:
> TD Investment Savings Account 1.25%
> ...


Hi Gibor. It's Chris from TD. Great questions, and we're glad to see some others have answered the first one (ie; the meaing of TDMC, TDPMC & CTC). Thanks to all. 

For more information about the investment itself, we recommend you call TD Waterhouse at 1-800-465-5463 and speak with a licensed representative. Hope that helps! ^CT


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## gibor365 (Apr 1, 2011)

I send e-mail to CIBC Investor Edge and the wrote back:
"1. Our records show that the TD Investment Savings Account Fund -Series F are not available to CIBC Investor Services Incorporated clients. The TD Investment Savings Account funds (not Series F) are not in our list of available funds. I called TD Mutual funds directly and they claim that these funds may be available only through TD's own financial advisors from the branch. However, I am still in the process of verifying this with our mutual fund desk. I will advise you as soon as the information becomes available. 

I confirm that the Renaissance High Interest Savings Account (ATL5000) is available for purchase into a Investor's Edge account. 

2, 3. Please note that CIBC Investor's Edge does not charge a commission for mutual fund orders. However, any load or redemption fees will be subject to the mutual fund company. Some companies require that the funds be held for a certain period of time. Please contact the mutual fund that you are interested in for more information. 

4. Mutual fund transactions are not available for same-day viewing on the Transaction History screen, and will be displayed when the trade has settled, as we have to wait for the order to come back from the fund company. Most mutual funds have a three-day settlement period, which would mean you would see those transactions after three business days".

So, the major question "The minimum deposit is $1000. So if I invest today $1000, can I redeem in 1 week (as an example) $500 and still continue to get interest for the rest of the amount? " is left unanswered. i e-mailed question to ATL.... and as per http://www.renaissanceinvestments.ca/en/products/hisa.asp there is no any holding period


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## Dibs (May 26, 2011)

I made a purchase through TDW for $1000 into TDB8150 on Jan 31st and it came through on Feb 1st. No comissions on the buy. Keep us posted on what you find out gibor.


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## RedRose (Aug 2, 2011)

Further to this question:


> So, the major question "The minimum deposit is $1000. So if I invest today $1000, can I redeem in 1 week (as an example) $500 and still continue to get interest for the rest of the amount? " is left unanswered. i e-mailed question to ATL.... and as per http://www.renaissanceinvestments.ca...ducts/hisa.asp there is no any holding period


This is the same interest rate 1.25% as the High Interest Saving Account that I have with TD.
They allow one free withdrawal a month with a $5 charge for any others after that. I have however made more than one withdrawal a month in the early days last summer as I didn't know how much I needed each month but they never ended up charging me the $5 fees. I do have the over 60 plan so not sure if that covers that or not.

Hope this helps...


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## Argonaut (Dec 7, 2010)

RedRose: If you have over $25000 in the high interest savings, all withdrawal fees are waived. Some people with lots of cash use it as a chequing account of sorts.


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## fatcat (Nov 11, 2009)

i use tdw high interest savings and have used manulife and rennaisance in the past as well

in tdw, you just enter the symbol of the fund in a sell order and you sell whatever amount you choose or buy whatever amount you choose and the cash is there the next day

no commissions on any of these products either in or out

as always, i will also recommend ally bank for 2% hisa cdic insured and it links easily to your checking with a great web interface


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## Dibs (May 26, 2011)

I've done a buy and sell of TDB8150 and there were no commissions. The transactions do seem to take more than a day, i.e. put in an order on Monday, confirmation comes on Wednesday.


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## sdfga (Dec 29, 2014)

New here. Hope you don't mind me reviving an old thread. 

I was poking around and found that there is a HISA offered by TDDI. I have some extra cash that I want to park and at least make a bit of interest as I decide where to invest the cash next. 

Since this thread was last updated in 2012, for those that are still purchasing TDB8150, has anything changed in terms of purchasing/redemption/commission etc.


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## Retired Peasant (Apr 22, 2013)

There are four (each considered separate for CDIC coverage limits)

TDB8150 – TD Bank
TDB8155 – TD Mortgage Corp 
TDB8157 - TD Pacific Mortgage Corp
TDB8159 – Canada Trust
There’s also a USD account (not CDIC covered)

CDIC covered 
minimum $1000 (subsequent - $100)
No commission to buy or sell
Currently 1.25%


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## leeder (Jan 28, 2012)

Retired Peasant said:


> There are four (each considered separate for CDIC coverage limits)
> 
> TDB8150 – TD Bank
> TDB8155 – TD Mortgage Corp
> ...


$1000 is what TD indicates as the minimum investment. I've put in less than that as the initial investment before and it has worked. And, from what I can tell, there's no minimum holding period.


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## Xoron (Jun 22, 2010)

Retired Peasant said:


> There are four (each considered separate for CDIC coverage limits)
> 
> TDB8150 – TD Bank
> TDB8155 – TD Mortgage Corp
> ...


So, how does one actually use these? Are they bought and sold like a mutual fund? IE if you have a TDWH or TD Bank Mutual fund account, can they be purchased that way? If they are within either account, are the CDIC insured?


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## gardner (Feb 13, 2014)

Yes, you buy/sell them in TDDI using the symbol TDB8150, etc. During the trade there are a few warnings about potential trailing commissions and such, but these do not apply to the specific HISA products. The trades seem to always take an extra 12-24 hours to execute, but settle immediately.


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## Retired Peasant (Apr 22, 2013)

Xoron said:


> ... if you have a TDWH or TD Bank Mutual fund account, can they be purchased that way? If they are within either account, are the CDIC insured?


Yes, they are CDIC insured in either account.


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## Xoron (Jun 22, 2010)

Retired Peasant said:


> There are four (each considered separate for CDIC coverage limits)
> 
> TDB8150 – TD Bank
> TDB8155 – TD Mortgage Corp
> ...


We setup a TD Branch Mutual Fund account (Not with TDWH/TDIS). 

Logged on and couldn't find these funds listed for purchase. Even called into TD to see about it, and was told that these funds aren't eligible for a TD Bank MF account.


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## heyjude (May 16, 2009)

You need a TD Waterhouse account to purchase these funds. TDB8150 is priced at $10 per unit, and instead of interest, the distributions come as fractions of new units. You buy and sell them just as you would a stock or mutual fund, but there is no commission.


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## james4beach (Nov 15, 2012)

I continue to use TDB8150 throughout my various accounts at TDDI. I've only tried it from the discount brokerage, and never seen any commissions.

Just to clarify: it's not actually a mutual fund. There is no unit price (like a fund's NAV) and it's not a money market fund. They are just using the mutual fund interface to give the instrument a name and a mechanism for moving money in & out.

The way this works is, the brokerage opens a savings account with the TD Bank or whatever and manages the allocations of which amounts belong to which individual account. Compared to a traditional savings account, there is an extra middleman here -- the brokerage. For instance, the brokerage can decide to delay or temporarily freeze deposits and withdrawals. They've never done this, but they certainly could.

My rule of thumb in investing is to reduce the number of middlemen, so I would still say that a traditional savings account directly at a bank is superior to one of the HISA vehicles. HISAs do offer convenience, and I use them myself. But for large amounts I still go directly to the bank and cut out of the middleman.

Liquidity is superior when you go directly to a bank.


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## NorthernRaven (Aug 4, 2010)

There's probably no need for these in a branch mutual fund account. For regular non-registered funds, the main advantage would be to get semi-decent interest inside the brokerage account waiting to re-invest, without sending to an external institution and potentially not being able to get them back in time to cover an equity purchase. If you aren't inside a brokerage account, just park the cash in the HISA of your choice.

For registered accounts that obviously isn't possible, but I don't think anyone is going to be holding cash medium/long-term inside a registered account?


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## Retired Peasant (Apr 22, 2013)

james4beach said:


> I continue to use TDB8150 throughout my various accounts at TDDI. I've only tried it from the discount brokerage, and never seen any commissions.
> 
> My rule of thumb in investing is to reduce the number of middlemen, so I would still say that a traditional savings account directly at a bank is superior to one of the HISA vehicles. HISAs do offer convenience, and I use them myself. But for large amounts I still go directly to the bank and cut out of the middleman


HISA at the bank pays a lower interest rate than tdb8150 at TDDI, though.


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## Xoron (Jun 22, 2010)

NorthernRaven said:


> There's probably no need for these in a branch mutual fund account. For regular non-registered funds, the main advantage would be to get semi-decent interest inside the brokerage account waiting to re-invest, without sending to an external institution and potentially not being able to get them back in time to cover an equity purchase. If you aren't inside a brokerage account, just park the cash in the HISA of your choice.


Sure there are a few good reasons. If you trust the big banks (and most do) and you want the best rate of return, then these "funds" offer 0.20% more than TD's HISA account. Not to mention that the HISA is only CDIC insured up to 100k, but each of the MF's are insured up to 100k each (If I understand the CDIC coverage correctly). So presumably you could have up to 400k insured by CDIC, earning 1.25% at a single institution.


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## sdfga (Dec 29, 2014)

heyjude said:


> You need a TD Waterhouse account to purchase these funds. TDB8150 is priced at $10 per unit, and instead of interest, the distributions come as fractions of new units. You buy and sell them just as you would a stock or mutual fund, but there is no commission.


So if it's priced at $10 per unit, and you decide to buy 1000$ worth at the beginning of the month, that would be 100 units.
At 1.25% (i think this is 1.25% per year, calculated daily and paid monthly).. then after 1 month, this would be worth $1001.

Instead of getting $1 in interest, you would be getting 0.1 of a unit?


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## AltaRed (Jun 8, 2009)

sdfga said:


> So if it's priced at $10 per unit, and you decide to buy 1000$ worth at the beginning of the month, that would be 100 units.
> At 1.25% (i think this is 1.25% per year, calculated daily and paid monthly).. then after 1 month, this would be worth $1001.
> 
> Instead of getting $1 in interest, you would be getting 0.1 of a unit?


Yes, you will see that as a 'reinvested distribution' each month on your monthly statement (something like 0.1 units reinvested @ $10). 

Mutual funds are calculated to 3 decimal places, e.g. 105.234 units.


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## GreatLaker (Mar 23, 2014)

sdfga said:


> Instead of getting $1 in interest, you would be getting 0.1 of a unit?


 Yes. You would see a DRIP transaction of 0.1 units with a value of $1.00. Your month end holding would be 100.1 units for a value of $1001.
(Note the values are rounded for simplicity... the actual interest on $1000 for a month would be slightly higher)


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## Eclectic12 (Oct 20, 2010)

james4beach said:


> I continue to use TDB8150 throughout my various accounts at TDDI. I've only tried it from the discount brokerage, and never seen any commissions.


+1 ... plus after the initial purchase, I've been able to buy in say my registered accounts for as small as $100.




james4beach said:


> Liquidity is superior when you go directly to a bank.


YMMV ... for example, another advantage is that when held in a registered account - it's added to one's cash balance when placing an order to buy. If the order does not go through, there's still interest being earned. If the order does go through, I'll usually place the sell order for the TFSA the following day.




NorthernRaven said:


> ... For registered accounts that obviously isn't possible, but I don't think anyone is going to be holding cash medium/long-term inside a registered account?


Regardless ... where one has chosen to keep receiving dividends instead of a DRIP, it's nice to be able to park it in amounts as small as $100 while waiting for a big enough build up to redeploy into another investment plus there can be a delay in finding a suitable investment.

Add to the the difference between what is being paid on cash and then IMO, the question becomes why would one choose the much reduced rate paid for cash, especially in a registered account?


Cheers


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## fatcat (Nov 11, 2009)

james4beach said:


> I continue to use TDB8150 throughout my various accounts at TDDI. I've only tried it from the discount brokerage, and never seen any commissions.
> 
> Just to clarify: it's not actually a mutual fund. There is no unit price (like a fund's NAV) and it's not a money market fund. They are just using the mutual fund interface to give the instrument a name and a mechanism for moving money in & out.
> 
> ...


say what ? ... the td savings account is cdic insured and thus governed by their mandate .... i seriously doubt they would apple the rules differently to an account held as savings at say scotia and an account held as savings at tddi

i can walk up the window at td and withdraw money directly and easily from my tddi

i do need to sell the savings account first though, that is different from a pure savings account but of course the interest paid is completely different


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## leeder (Jan 28, 2012)

I was looking through my portfolio today, and I was curious to see if they dropped the TD Investment Savings Account rate as a result of the rate cut. They did. Now it's 1.00%.


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## james4beach (Nov 15, 2012)

Brutal. Thanks for letting us know.


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