Must You Keep a $25,000 Balance in a BMO InvestorLine High Interest Savings Account?

BMO InvestorLine does offer the ability to invest in High Interest Savings Accounts that are sold as if they are mutual funds by financial institutions such as BMO, Dundee, Altamira and ICICI. What is not clear on their website is whether a $25,000 minimum balance must be maintained in these accounts at all times to avoid automatic redemption of all holdings.


UPDATE: As of April 11, 2013, BMO InvestorLine is now offering BMO AAT770 and AAT780 HISA funds which only require a minimum balance of $5,000.

UPDATE: As of September, 2013 you can no longer invest in any high interest daily savings account funds except BMO’s own AAT770 and AAT780 unless you will be exceeding the CDIC insurance limit from what I can find on their site. The minimum balance remains $5,000.

This post is now historical information about the time when BMO required a $25 000 minimum deposit in a HISA fund. It now only requires $5 000 at the time this was written in February 2014.

Minimum InvestorLine Balances for Money Market and T-bill Funds
BMO’s online guidelines clearly state that a minimum balance of $25,000 must be held at all times in non-BMO money market and T-bill funds. If the balance drops below $25,000, the fund is automatically redeemed.

Their guidelines, however, do not state whether a minimum balance of $25,000 is similarly required for the High Interest Savings Account funds.

Asking for Clarification from BMO
When I queried BMO InvestorLine through their secure MyLink internal email, twice, I received ambiguous replies.

The replies seem to state that there is not a requirement to keep a minimum balance of $25,000. However, there may be a minimum balance required by the company issuing the fund. (For example, ICICI might require a minimum balance of $25,000.)

Financial Provider Minimum Balances
I took a quick look at the ICICI website. It seems to state that the minimum balance is $1,000. However, since ICICI only offers this product through brokers, including InvestorLine, I can’t be certain that is true.

Time for a Test
I think the only way I’m going to find out for sure is when I try this product. I don’t have $25,000 available right now to test purchase a high interest savings account from BMO InvestorLine. But when I do, I plan to test this and see what happens. Of course, I will post the results on this blog.

In the meantime, I’d appreciate it if everyone could drive the market higher so that it would be profitable for me to liquidate some stocks to free up the needed cash for this test. Thank you!

UPDATE: As of September, 2013 you can no longer invest in any high interest daily savings account funds except BMO’s own AAT770 and AAT780 unless you have reached the maximum CDIC insurable amount of $100 000  from what I can find on their site. The minimum balance remains $5,000.

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Join In
Have you already tested this product from BMO InvestorLine? Were you able to reduce your investment below $5 000 $25,000 without triggering an automatic redemption? Please share your experiences with a comment.