High Interest Savings Accounts for Corporation

Banking and Saving strategies, maximizing interest rates, budgeting, GICs, HISAs.
KCinWhitby
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High Interest Savings Accounts for Corporation

Post by KCinWhitby »

Hello everyone, it's been awhile since I've been here. I'm looking for advice for a high interest savings account for my corporate money.
I've always had in in ING/Tangerine as it was easy to move in and out but they are only paying 0.65% and considering the banks hikes of .75 in the last year, you'd think some of that would go to us.

I realize there are places like Alterna, EQ Bank and Accelerate, I'm just not sure if they do Corporations. THis is only for my Corporate money.

I'm also interested if anyone knows what High Interest Savings Accounts pay the most now. Or where I can find that information.

I have money invested through BMO Investorline in:
Altimira - NBC100
BMO HISA - AAT770
Hollis - DYN500
ICICI - IBN100
Manulife - MIP500 and MIP710
RBC - RBF2012
Rennaissance - ATL5000

As you can see I've stuck with these accounts as I keep watching the markets grow and my money barely grow. LOL

Thanks for any advice,


Kevin C
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AltaRed
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Re: High Interest Savings Accounts for Corporation

Post by AltaRed »

Why not move your question to the 'Under the Mattress' sub-forum and/or review the threads there where that discussion goes?

Move done -- Administrator
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Koogie
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Re: High Interest Savings Accounts for Corporation

Post by Koogie »

As you can see, probably not much has changed since the last time you were here... :roll:


The following website is probably where you should start your looking around - www.highinterestsavings.ca
Have a look at their comparison chart.

FWIW, I maintain a small list there of banks and CU that do and do not accept GICs for small business. I would assume those institutions would have similar restrictions on corporate money in HISAs.

https://www.highinterestsavings.ca/foru ... -business/
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Re: High Interest Savings Accounts for Corporation

Post by adrian2 »

Do you have a corporate brokerage account?
TDB8150, easily accessible from TDDI, currently pays 1.1%, and is in fact a HISA.
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Re: High Interest Savings Accounts for Corporation

Post by KCinWhitby »

Thanks Koogie that is a great place to start. Much appreciated.

AltaRed, I'll take a look where this should have gone. "Under the Carpet" who would know. LOL



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Re: High Interest Savings Accounts for Corporation

Post by KCinWhitby »

adrian2 wrote: 26 Jan 2018 14:18 Do you have a corporate brokerage account?
TDB8150, easily accessible from TDDI, currently pays 1.1%, and is in fact a HISA.
Yes I do have a corporate brokerage account.
Thanks so much, that will be a great place for some of this.
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Re: High Interest Savings Accounts for Corporation

Post by AltaRed »

KCinWhitby wrote: 26 Jan 2018 14:25 AltaRed, I'll take a look where this should have gone. "Under the Carpet" who would know. LOL
I mentioned this because cash PRODUCTS are primarily about protection of capital, a reserve for upcoming investment/business opportunities, a reserve for unknown consequences, and I suppose as a means to dampen 'net worth' volatility. It really is nothing more than an enabler for other purposes. On that basis, return on capital is a distant secondary purpose.

You already have a bunch of 'cash deposits' in your list. Why so many?

As already mentioned, www.highinterestsavings.ca is a 'go to' for ideas as are the long 2017 and 2018 threads in the Under the Mattress sub-forum. You have to query which of those FIs handle corporate accounts. That said, a number of the brokerage HISAs now pay in the order of 1% or better.
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Re: High Interest Savings Accounts for Corporation

Post by good4u »

KCinWhitby wrote: 26 Jan 2018 14:02 Hello everyone, it's been awhile since I've been here. I'm looking for advice for a high interest savings account for my corporate money.
I've always had in in ING/Tangerine as it was easy to move in and out but they are only paying 0.65% and considering the banks hikes of .75 in the last year, you'd think some of that would go to us.

I realize there are places like Alterna, EQ Bank and Accelerate, I'm just not sure if they do Corporations. THis is only for my Corporate money.

I'm also interested if anyone knows what High Interest Savings Accounts pay the most now. Or where I can find that information.

I have money invested through BMO Investorline in:
Altimira - NBC100
BMO HISA - AAT770
Hollis - DYN500
ICICI - IBN100
Manulife - MIP500 and MIP710
RBC - RBF2012
Rennaissance - ATL5000

As you can see I've stuck with these accounts as I keep watching the markets grow and my money barely grow. LOL

Thanks for any advice,


Kevin C
Hi Kevin C,

Did you try asking Tangerine for a better rate? I have been able to get 1.25% on corporate funds in a savings account with them. Not the best rate but a good balance of return and liquidity and CDIC coverage of course.
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Re: High Interest Savings Accounts for Corporation

Post by THEMAINEVENT »

+1

Also have 1.25% on my corporate Tangerine account. Takes a 2 minute phone call once a quarter.
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Re: High Interest Savings Accounts for Corporation

Post by KCinWhitby »

THEMAINEVENT wrote: 27 Jan 2018 07:56 +1

Also have 1.25% on my corporate Tangerine account. Takes a 2 minute phone call once a quarter.
Thanks gentlemen, I’ll definitely try that too. Took me 20 minutes to reach Tangerine last time and then it was not hearing my pin through my cell phone. So frustrating. May I ask how long have you had 1.25 with them? Has it increased to that due to the increases?

BMO just offered me a small incentive to move more money to Investorline too

Thansk again
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Re: High Interest Savings Accounts for Corporation

Post by good4u »

KCinWhitby wrote: 27 Jan 2018 10:55
THEMAINEVENT wrote: 27 Jan 2018 07:56 +1

Also have 1.25% on my corporate Tangerine account. Takes a 2 minute phone call once a quarter.
Thanks gentlemen, I’ll definitely try that too. Took me 20 minutes to reach Tangerine last time and then it was not hearing my pin through my cell phone. So frustrating. May I ask how long have you had 1.25 with them? Has it increased to that due to the increases?

BMO just offered me a small incentive to move more money to Investorline too

Thansk again
The 1.25% we have with Tangerine now was extended for 90 days so until the end of April 2018 but getting the rate has always been the exception and not the rule for us. A good alternative is Oaken which offers 1.5% in a savings account and is CDIC insured but they did have a bit of a scare last summer which I believe is all sorted out now. There may be better options out there but these are the two best I am aware of for now.
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Re: High Interest Savings Accounts for Corporation

Post by KCinWhitby »

Thanks "good4u" and "themainevent". I called and once I got through they gave me 1.25% for 90days.
I'll just set a reminder to ask again every 90 days.

Much appreciated.

Kevin C
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Re: High Interest Savings Accounts for Corporation

Post by Park »

About HISAs and GICs for corporations, if your corporation has a HISA with a bank or CU, will you get CDIC coverage for a personal account with the same bank or CU?
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Re: High Interest Savings Accounts for Corporation

Post by Koogie »

Park wrote: 30 Jan 2018 22:10 About HISAs and GICs for corporations, if your corporation has a HISA with a bank or CU, will you get CDIC coverage for a personal account with the same bank or CU?
Yes.
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Re: High Interest Savings Accounts for Corporation

Post by adrian2 »

Koogie wrote: 31 Jan 2018 09:11
Park wrote: 30 Jan 2018 22:10 About HISAs and GICs for corporations, if your corporation has a HISA with a bank or CU, will you get CDIC coverage for a personal account with the same bank or CU?
Yes.
To elaborate a bit, I don't really understand the premise of the question: why would your (personal) CDIC coverage be influenced in any way by what a corporation does? A corporation is a different legal entity than any other person.

And while banks are generally members of the CDIC, AFAIK, credit unions are not, and have a different backer.
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Re: High Interest Savings Accounts for Corporation

Post by Park »

adrian2 wrote: 31 Jan 2018 10:13
Koogie wrote: 31 Jan 2018 09:11
Park wrote: 30 Jan 2018 22:10 About HISAs and GICs for corporations, if your corporation has a HISA with a bank or CU, will you get CDIC coverage for a personal account with the same bank or CU?
Yes.
To elaborate a bit, I don't really understand the premise of the question: why would your (personal) CDIC coverage be influenced in any way by what a corporation does? A corporation is a different legal entity than any other person.

And while banks are generally members of the CDIC, AFAIK, credit unions are not, and have a different backer.

Your points are well taken. I strongly suspected that a personal and corporate bank account would have no effect on CDIC coverage, but I wanted to check. And you are correct that credit unions have a different backer, except for the sole federal credit union, Caisse populaire acadienne ltée.
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Re: High Interest Savings Accounts for Corporation

Post by Park »

http://www.cdic.ca/en/about-di/how-it-w ... -name.aspx

"A depositor can be an individual, a corporation and an association of persons such as a labour union, a civic service group or a religious congregation. However, a sole proprietorship is not considered to be a separate depositor since it is a business operated in the depositor’s own name.:

A common scenario is to have an operating corporation and a holding corporation, with identical ownership for each. I assume that for CDIC coverage, the two corporations would be considered two separate depositors?
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Re: High Interest Savings Accounts for Corporation

Post by Park »

I checked with CDIC about the question in the last post of this thread.

If you are the sole owner of two corporations, each corporation would considered a separate depositor. And the owner of the two corporations would also be considered a separate depositor; the latter confirms what Adrian wrote.
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Re: High Interest Savings Accounts for Corporation

Post by Park »

I can't edit a previous post, so I had to create a new one. Some corporations have family trusts. I wondered whether a family trust would be considered a separate depositor, and it looks like each beneficiary of a family trust would be considered a separate depositor. So each beneficiary effectively would have double CDIC cover, that which everyone has and that which comes from being a beneficiary of a trust.

However, there are regulations that must be followed, and I'm copying the email that I received:

"There must be a valid trust (established with or without formal documentation), as determined under the trust laws of the province where the trust is established; and,

· the trustee must disclose for inclusion on the records of the CDIC member institution the following information:


1. the name and address of the person who is acting as the trustee (or all of them, if there are co-trustees);
2. the fact that the eligible deposits are held by that person (the depositor) in trust for a beneficiary or beneficiaries;
3. the name and address of each beneficiary of the trust (or where permitted an alpha-numeric code or other identifier that is linked to a record kept by the trustee that contains the beneficiary’s name and address); and
4. if there is more than one beneficiary of the trust, the portion belonging to each beneficiary as at April 30 (expressed as a dollar amount or as a percentage) by May 30 of each year. Member institutions must send a notice to trustees each year to remind them of this requirement.



If the requirements outlined above are met and the deposit held in trust is eligible for deposit insurance, each beneficiary's interest in the trust deposit is separately protected up to a maximum of $100,000. If the CDIC member were to fail, the deposit insurance would be paid to the trustee in trust for the beneficiary or beneficiaries.


In order to be counted in calculating CDIC deposit insurance a beneficiary of a multi-beneficiary trust must have a quantified present interest – that is, an interest that can be expressed as or translated into a dollar amount. Therefore, a discretionary beneficiary (i.e., a beneficiary who might become entitled to trust property in future on the exercise of a discretion given to the trustee which has not yet been exercised) is not counted. Similarly, a contingent beneficiary (i.e., a beneficiary who will become entitled to trust property on the happening of some event that has yet to occur) is not counted."
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Re: High Interest Savings Accounts for Corporation

Post by Peculiar_Investor »

Park wrote: 05 Feb 2018 15:01 However, there are regulations that must be followed, and I'm copying the email that I received
I can confirm that what you've received is how at least RBC deals with formal trust accounts. I'm a trustee on a couple of formal family trusts and we get mailings annually regarding the disclosure needed for CDIC coverage.
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Re: High Interest Savings Accounts for Corporation

Post by johnsmith1 »

TDDI's tdb8150

If I want to have interest payment at month end, I just choose dividend option: cash?

I experimented in my personal registered account, but at month end, they dripped the units even though I chose cash option. I remember I sent the order after the market closed, was that the reason? These units were actually purchased by tddi people manually?

TIA!
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Re: High Interest Savings Accounts for Corporation

Post by Park »

The best rates for HISAs are for personal accounts. I made a quixotic attempt to see if a corporation could access those account, but not surprisingly, the answer was no.

However, for corporations wanting to buy GICs, it's a somewhat different story. When it comes to the GIC providers with the highest rates, there are institutions where only individuals can access those rates. In at least one institution, corporate GIC rates are slightly below personal rates. But there are institutions which are at the high end of rates, and offer the same rates to individuals and corporations.
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Re: High Interest Savings Accounts for Corporation

Post by Park »

TDB 8150 has been mentioned as an option for a business HISA. However, the interest rate is 0.2%.

Oaken offers the same rates to businesses, as it does to individuals, when it comes to deposit accounts and GICs. With Oaken, you can have accounts with both Home Trust and Home Bank, and each would be eligible for $100K CDIC coverage. Presently, interest rate is 1.15% on an Oaken savings account, which is a modestly greater than 0.2%. However, if you want to look on the glass as half full, you could say that the Oaken rate is 575% greater than the TDB8150 rate :) .

Any other options than Oaken?
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Re: High Interest Savings Accounts for Corporation

Post by Eclectic12 »

johnsmith1 wrote: 10 Apr 2018 11:49 ... I experimented in my personal registered account, but at month end, they dripped the units even though I chose cash option. I remember I sent the order after the market closed, was that the reason? These units were actually purchased by tddi people manually?
My understanding is that the unit received are the interest.
If one wants cash, one has to sell units.

I'd think the units are issued versus purchased as the units represent what's on deposit (interest or deposit) but made available through the MF ordering system.


Cheers
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Re: High Interest Savings Accounts for Corporation

Post by good4u »

Park wrote: 25 Sep 2021 19:45 TDB 8150 has been mentioned as an option for a business HISA. However, the interest rate is 0.2%.

Oaken offers the same rates to businesses, as it does to individuals, when it comes to deposit accounts and GICs. With Oaken, you can have accounts with both Home Trust and Home Bank, and each would be eligible for $100K CDIC coverage. Presently, interest rate is 1.15% on an Oaken savings account, which is a modestly greater than 0.2%. However, if you want to look on the glass as half full, you could say that the Oaken rate is 575% greater than the TDB8150 rate :) .

Any other options than Oaken?
While hardly better, BMOIL also has a high interest savings account that offers 0.25% interest. Like I said, not much better, but is an alternative to the 0.2% at TDW.
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