Cash alternatives at RBCDI

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Re: Re:

Postby bwalter » 09 Jul 2010 11:52

Chris wrote:Any other options for US$ other than:
IBN200
RBF261
RBF1003
?

I'm looking into this right now myself. At the moment I have:
IBN200 - .25%
MIP511 - .20%
NBC101 - .20%
DYN400 - .20%

The rates are the rates posted on the company websites, not what RBCDI claims the yield is. Am I missing any?

The rates are pretty pathetic and I'm not touching ICICI with a 50 foot pole after my past experiences dealing with them directly and the fact that reports are the true yield may differ from what they post on their site. I only have a very small ammount to invest since it's some dividends paid on my USD RRSP holdings. At this point I'd go with either NBC101 or DYN400 since they don't seem to have a minimum investment. Then again it probably makes more sense for me to just roll the funds into a USD US index fund like TDB217.
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Re: Cash alternatives at RBCDI

Postby tedrfnwr » 22 Jul 2010 08:13

I asked a very similar question in another thread but did not draw much attention. I hope you guys wouldn't mind if I ask it again here. After all it concerns how RBCDI treats cash alternatives.

I currently have a margin account with TD Waterhouse. As pointed out by iluvnascar on Feb 20, 2010 in viewtopic.php?f=35&t=111286, deposits in money market fund equivalents such as Manulife Investment Savings Account (MIP510) or Renaissance High Interest Savings Account (ATL 5000) in a margin account are not "marginable" at TDW because they are priced at $1. If one has a typical margin account (not cash or registered accounts) with $50,000 in MIP510 and nothing else in the account, there is zero margin available and one would not be allowed to place any buy order online. The alternative would be to place the buy order through a live TDW Rep and hope that you would not be charged the full commission. Deposits in Dundee Investment Savings Account (DYN 500) priced at $10 are 95% marginable. If one has $50,000 in DYN500, there is $47,500 margin available and one can buy up to $47,500 worth of stocks (commission included) before redeeming whatever is needed one day before settlement in order not to pay any margin interest. At TDW, a person's buying power in a margin account is only the margin value of the holdings.

The word "margin", however, seems to be interpreted differently at RBCDI than at TDW. Recently I heard that at RBCDI, while MIP510 remains not marginable in a margin account, a person with $50,000 in MIP510 and nothing else is allowed to place buy orders online and buy up to $50,000 worth of stocks. On a fill, the person can redeem the required MIP510 one day before settlement. That means at RBCDI, a person's buying power is at least the actual "equity" value of the holdings in the margin account, $50,000 in this case. I would appreciate it very much if someone would kindly advise if my understanding of RBCDI's practice is correct.

Thanks.
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Re: Cash alternatives at RBCDI

Postby ColdCanuck » 30 Jul 2010 18:49

RBF2001 Series A 0.900% (Up from 0.75%)


http://www.rbcroyalbank.com/products/isa/index.html
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Re: Cash alternatives at RBCDI

Postby BRIAN5000 » 30 Jul 2010 20:41

ColdCanuck wrote:RBF2001 Series A 0.900% (Up from 0.75%)


http://www.rbcroyalbank.com/products/isa/index.html


FIGURES just sold this one cause it was the lowest now its the highest.(Held it TDW not RBCDI) Money at Ally now at 2%.
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Re: Cash alternatives at RBCDI

Postby Belizean Beach Bum » 20 Aug 2010 10:30

How long does it take for the sale of HISA funds (RBF2001) to be available for transfer out to a bank account? Is it T+1 or T+3?

Can I transfer funds out if my RDI balance still reads zero? If so, is there an interest penalty?
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Re:

Postby fundamental » 15 Sep 2010 07:55

BRIAN5000 wrote:
BTB 100 seems to be paying the most at the moment, at 0.80%.


Not available at TDW :(

They only have four

Alt5000
DYN500
MIP510
RBC2001


Now they have five... MIP 710 now at 1.05%
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Re: Cash alternatives at RBCDI

Postby Arby » 15 Sep 2010 09:56

What is MIP710? It is not shown on the Manulife Bank website. Only MIP510 and MIP511 are shown.

BTW, MIP511 (US dollar savings account) is also available at TDWH.
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Re: Cash alternatives at RBCDI

Postby optionable68 » 15 Sep 2010 20:20

Arby wrote:What is MIP710? It is not shown on the Manulife Bank website. Only MIP510 and MIP511 are shown.

BTW, MIP511 (US dollar savings account) is also available at TDWH.


MIP710 is Manulife Trust
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Re: Cash alternatives at RBCDI

Postby ColdCanuck » 09 Oct 2010 08:28

RBF2001 1.2% effective 2010-10-08
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Re: Cash alternatives at RBCDI

Postby Turkey » 19 Apr 2011 15:34

The Royal Bank is no longer offering third party high interest savings vehicles!!
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Re: Cash alternatives at RBCDI

Postby AltaRed » 19 Apr 2011 15:35

Turkey wrote:The Royal Bank is no longer offering third party high interest savings vehicles!!

Do you mean RBC DI, and can you clarify that with a reference?
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Re: Cash alternatives at RBCDI

Postby Turkey » 19 Apr 2011 15:41

Yes RBC DI. I called this am to cover a stock purchase after my online attempts to sell some BTB100 failed repeatedly. I was informed that RBC DI was no longer dealing with the high interest savings vehicles provided by third parties. I could keep my BTB100 but can not add to it and can only sell it via tha phone!!
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Re: Cash alternatives at RBCDI

Postby Shakespeare » 19 Apr 2011 18:12

I just checked my account and MIP510 is no longer a valid symbol. :x

RBF271 is a MMF alternative for $500 and up. IIRC it will convert to Series "D" automatically above $10K.
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Re: Cash alternatives at RBCDI

Postby northbeach » 19 Apr 2011 20:53

That's not nice of them.

RBCDI is offering 30 day cashable GICs at 1.2%. Never owned a cashable GIC. The interest payment shows annual.

Does this mean I receive 1.2% interest for the time period I own the GIC as long as I cash the GIC out after 30 Days?

What would be better - a cashable GIC or a money market fund?
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Re: Cash alternatives at RBCDI

Postby ockham » 19 Apr 2011 21:05

northbeach wrote:
RBCDI is offering 30 day cashable GICs at 1.2%. Never owned a cashable GIC. The interest payment shows annual.

Does this mean I receive 1.2% interest for the time period I own the GIC as long as I cash the GIC out after 30 Days?

Yes. You have to do it by phone, but it works fine.
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Re: Cash alternatives at RBCDI

Postby northbeach » 19 Apr 2011 21:30

Thanks ockham.

Looks like the cashable GIC is the way to go.

I think RBCDI should have kept at least one High Yield product. They could have offered one created by Royal Bank.

However, I ain't switchin buckin brokers over this.
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Re: Cash alternatives at RBCDI

Postby Shakespeare » 19 Apr 2011 21:57

I've still got my MIP510; I just can't add to it. However, since I'm in withdrawal mode, I'm basically selling, not buying, so I guess I can use RBF271 for the small amounts of cash that accumulate before I withdraw them.
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Re: Cash alternatives at RBCDI

Postby northbeach » 19 Apr 2011 22:44

Shakespeare wrote:I've still got my MIP510; I just can't add to it. However, since I'm in withdrawal mode, I'm basically selling, not buying, so I guess I can use RBF271 for the small amounts of cash that accumulate before I withdraw them.
Going forward, I suppose not a big loss in my case either.
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Re: Cash alternatives at RBCDI

Postby ColdCanuck » 20 Apr 2011 09:39

You still seem to be able to purchase RBF2001, Royal's HISA which is currently paying 1.2%.

Avoids the hassle of cashable GICs, which no doubt have some sort of penalty if they are cashed.
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Re: Cash alternatives at RBCDI

Postby Shakespeare » 20 Apr 2011 09:44

You still seem to be able to purchase RBF2001, Royal's HISA which is currently paying 1.2%.
Yes, thanks for that; I had forgotten that number. I just checked and was allowed to fill out an on-line purchase request (which I didn't submit because the free cash was below the $1K minimum).
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Re: Cash alternatives at RBCDI

Postby ockham » 20 Apr 2011 09:52

ColdCanuck wrote:You still seem to be able to purchase RBF2001, Royal's HISA which is currently paying 1.2%.

Avoids the hassle of cashable GICs, which no doubt have some sort of penalty if they are cashed.


Not that the cashables are hassle free, but if cashed in full or in part outside the 30 days, you are paid interest to the date you cash out. As promised. That is my experience, in any event. But it cannot be done online, you have to phone.
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Re: Cash alternatives at RBCDI

Postby northbeach » 20 Apr 2011 10:06

Shakespeare wrote:
You still seem to be able to purchase RBF2001, Royal's HISA which is currently paying 1.2%.
Yes, thanks for that; I had forgotten that number. I just checked and was allowed to fill out an on-line purchase request (which I didn't submit because the free cash was below the $1K minimum).


I am smiling again.

But we should also check out the rate of cashables for rates offered. Seems both 30 day cashables and the RBF2001 are both 1.2% now.
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Re: Cash alternatives at RBCDI

Postby IdOp » 20 Apr 2011 10:44

The RBC ISA has minimum of $1000, so I guess if you sell part of it and go below that amount, they will probably redeem all of it? Not a huge deal at today's rates, but not a problem for some of the competitive ISAs. Similarly Manulife Trust ISA is now at 1.25%. I hope this kind of restrictive move isn't copied by other brokers.
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Re: Cash alternatives at RBCDI

Postby Bylo Selhi » 20 Apr 2011 11:42

One potentially useful feature of cashables is the put option in case short term rates go up. Currently you can get 1-yr fixed rates of 1.75% to 2% so the option premium on a 1.2% cashable is 50 to 80bp. How likely are ST rates to spike up by more than that in the next year? How likely are you going to need to cash out a GIC in the next year?

Another strategy is e.g. to put 50% in a 1-yr fixed at 2% and the other 50% in an ISA at 1.2% (or more, e.g. 2% at Ally.) Then in 6 months decide if you want to buy a 1-yr fixed with the second 50%. If rates go up you could get more than 2% on that half. Etc.
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Re: Cash alternatives at RBCDI

Postby Arby » 16 Jun 2011 08:38

RBF2001 high interest savings account has been discontinued, and replaced with RBF2010. They are essentially the same, except RBF2010's unit value is $10 (as opposed to $1 for RBF2001). Apparently the change in unit value allows the fund to be counted as a marginable asset.
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