# Scotia iTrade high interest savings accounts



## ChrisR (Jul 13, 2009)

I've been looking into the high interest savings accounts offered by iTrade, and I've found that all the popular accounts seem to have a 5k minimum investment (ie. Manulife, Renaissance, RBC, Dundee).

I'm just looking for a place to park a little money (slightly less than 5k) until the summer volatility has passed. I'm hoping another iTrade user can give me a suggestion on where best to park this money?

Does anyone use the cash optimizer account? If so:
-Are there any fees associated with it? (ie. low activity fees? Yearly account fees? Fees to transfer money in and out from your actual account?)
-How long does it take to transfer money between the cash optimizer and the regular brokerage account?
-What rate is the cash optimizer paying now?

Sorry about all the questions, the iTrade website is ridiculously uninformative when it comes to these kinds of things, and I've been burnt by not paying attention to iTrade's little fees before. If anyone can help I would very much appreciate it!


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## avrex (Nov 14, 2010)

Hi Chris,
I have a Scotia iTrade non-registered cash account.

The Cash Optimizer Account was an Etrade creation. I think even back in 2008 or 2009 it was paying 4% interest. However, when Scotiabank took over ETrade , they immediately dropped the rate to almost nothing. 

*1. Interest Rate*
Today the iTrade Cash Optimizer Account interest rate sits at* 0.65%* 
If you're still interested with that rate read on.

Chris, do you currently have an iTrade account?
If you do, you still need to open up another account and designate it as the iTrade Cash Optimizer Account.

*2. Real time transfer. * 
Once you have the account, the transfer between your regular iTrade account and the iTrade Cash Optimizer Account can be done instantly, in real time.

*3. Costs.* 
Transfers are free. Transfers between your iTrade accounts and transfers with outside bank accounts are free and unlimited.


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## ChrisR (Jul 13, 2009)

Thanks avrex! That was just the info I was looking for.

I agree that 0.65% isn't very inspiring. It looks like the tradeoff is that its relatively convenient, once the account is set up.


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## nomad (Apr 7, 2010)

A regular Scotiabank "high-rate" savings account has an interest rate of 1.35% by the way.


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## iTrade Newb (Nov 28, 2011)

*Negative interest rate on non-registered scotia itrade cash account?!!*

Avrex,

I applied for my scotia itrade RRSP, TFSA and non-registered account a few days ago at my local scotia bank. When it came to choosing the non-registered account option the person helping me at the bank initially selected "cash account" when I queried if I could open a cash optimizer instead they called up the itrade Helpdesk who told them the cash optimizer can only be opened after my account is set up (which sounded stupid to me and still does because "cash optimizer" was one or the options on the drop box) Anyway, it didn't bother me that I might not get any interest at all on my $25K deposit which I put all into the cash account as the interest on the cash optimizer is only 0.65%... No big loss. Today however as I was looking over the itrade website I came across a section on account interest rates and saw that on cash account the so-called "interest rate" is "P-5.25" for accounts between 10K - 49K with Prime being 3%. Am I reading this right? Is Scotia going to CHARGE me 2.25% for holding 25K in a cash account??!?!!! Can you (or anyone else reading) clarify as you have a cash account?? This idea of CHARGING me interest to hold cash in an account is so repugnant I'm about ready to pull ALL my assets from scotia altogether. 



avrex said:


> Hi Chris,
> I have a Scotia iTrade non-registered cash account.
> 
> The Cash Optimizer Account was an Etrade creation. I think even back in 2008 or 2009 it was paying 4% interest. However, when Scotiabank took over ETrade , they immediately dropped the rate to almost nothing.
> ...


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## avrex (Nov 14, 2010)

iTrade Newb said:


> Avrex,... Today however as I was looking over the itrade website I came across a section on account interest rates and saw that on cash account the so-called "interest rate" is "P-5.25" for accounts between 10K - 49K with Prime being 3%. Am I reading this right? Is Scotia going to CHARGE me 2.25% for holding 25K in a cash account??!?!!! Can you (or anyone else reading) clarify as you have a cash account?? This idea of CHARGING me interest to hold cash in an account is so repugnant I'm about ready to pull ALL my assets from scotia altogether.


Hi iTrade Newb,
Here's the page you are referring to.
Scotia iTRADE - Commissions and Fees

In answer to your question, no, they will never 'charge' you for holding your cash. Since P-5.25, 3-5.25, = -2.25 is < 0, they will give you zero interest on your cash in this account. As you can see by their chart, it would take quite a change in the Prime interest rate, before these cash accounts start paying interest.

But, yes I can put you at ease and confirm for you that I am receiving *0.65%* in the Cash Optimizer Account.


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