Recently, I’ve been tidying up our investments in our CIBC Investor’s Edge RRSP account. These included some bond mutual funds that were purchased as part of a self-rebalancing mutual fund investment portfolio about 20 years ago. The actual dollar amounts invested were negligible and the returns of the funds were reasonable on a percentage basis but miniscule in a real dollar way. Instead of keeping this money in risky foreign bond mutual funds, I decided to sell them and temporarily park it in a HISA while I decide where better to invest it. Here’s how to buy units in a daily interest savings account fund, such as ATL5000, in an Investor’s Edge Account.

(This approach is intended for registered accounts where you can’t just shift the money to a conventional high interest savings account at another bank. For example, for TFSAs, RRSPs, RRIFs, LIRAs, RESPs, RDSPs, etc.)

Just How “High” Is the “High Interest” Offered in a HISA Fund?

Don’t get your hopes up.

Today, in October 2013, ATL5000 the Renaissance HISA fund, is paying 1.25% per year. Yep, that’s $12.50 if you invest $1000 for an entire year. Still that would buy me a large dim sum lunch with tax (before tip).
UPDATE: On March 18, 2017 ATL5000 is paying 0.75%.

For more info on ATL5000, you can visit Renaissance’s website.

Buying ATL5000 in an Investor’s Edge Account

1. Sign On to your Investor’s Edge account.
2. From the link list on the left side of the screen, click on Trading.
3. From the link list on the left side of the screen, click on Trade Mutual Funds.

On the Mutual Fund Order Entry Screen

1. Ensure that the Account selected is the correct one for the transaction.
2. From the Action: section, select
   • Buy; or
   • Buy More of Holdings (if you already have some units of ATL5000 in this account)

   by clicking the radio button beside the appropriate phrase.

If You Are Buying Units of ATL5000 for the First Time

1. In the Mutual Fund: section,
   click on the Mutual Fund Search link.
2. In the Keyword box, type ATL5000 and click on the Search button.
3. Review the details about the Renaissance High Interest Savings Account.
   It states that this is a Front End load fund. It is true that the issuer, Investor’s Edge, is paid a commission. It’s paid by Renaissance, though, not you, so while your interest rate will be lower because of the fee, you will not actually give up any principal to pay.
4. Click on the Buy link.
   You will return to the Mutual Fund Order Entry Screen.

If You Are Buying More Units of ATL5000

1. In the Mutual Fund: section,
   click on the drop-down list.
2. You will see all of your mutual funds. Just highlight to select ATL5000.

Continuing Down the Mutual Fund Order Entry Screen in Both Instances

1. If desired, click on the Get Quote button. Because this is a daily interest savings account, the price should always be $1 CAD per unit.
2. In the Amount: section, type the amount you wish to put into your savings account in dollars, or in units, which is the same thing anyway!
3. In the Dividend Section, select either
   • Reinvest in Units Of This Mutual Fund; or
   • Deposit Cash To Brokerage Account

   by clicking on the appropriate radio button.

4. In the Pay From: section, ensure that the correct account is selected.
5. Click on the Next button.

To have fun, I tested buying an additional $100.
The system replied “The order Amount is less than the minimum allowed value.”
In fact, it wouldn’t let me buy an additional $200, $300, $400, $500, $600, $700, $800, or $900 either. I had to buy $1000 additional units to proceed.

(NOTE: If I had only $40 to add to my HISA, I could have sold 1000 units of the HISA, and once the cash was back in my account, purchased $1040 units. It would cost me a few days of daily interest, but it could be done.)

Finalize the Purchase

1. Review the purchase details. If they look OK, in the Trading Password field, type your password.
2. Click on the Submit Order button.
3. Copy and paste your confirmation including the Order Tracking Number into a document and save it until the transaction is properly reported for your account.
4. If you are finished with your Investor’s Edge account, click on the Sign Off button.
   For increased security, clear your browser history and cache and close your browser session.

Related Reading

• ATL5000 High Interest Savings Account Fund at CIBC Investor’s Edge Online Discount Brokerage
• How to Buy Units of AAT770 HISA in a BMO InvestorLine Account

Join In
Do you park your cash in a high interest account while you decide where to re-invest? Does the phrase “high interest” make you laugh? Please share your experiences with a comment.