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How to Invest in the AAT770 High Daily Interest Savings Account Fund, HISA, at BMO InvestorLine

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Recently BMO InvestorLine updated its HISA offerings with a daily interest savings account fund of its own called AAT770. (It also offers AAT780 for US dollar transactions.) This is a no-load purchase. It’s also CDIC insured.As of October 3, 2017, it is paying 0.95% and the minimum holding of this investment is $1 000. As of February 20, 2014  April 12, 2013 it is paying 1.25%  1.27% per year.  UPDATE: On March 18, 2017 AAT770 is paying 0.75%. The minimum holding of this investment is $5000, considerably less than the minimum $25,000 holding for other HISAs. Of course, BMO could have just started paying interest on cash balances over $5000 as it used to do in the past and saved investors a hassle. Presumably they expect many investors to overlook this possibility and save themselves some money. Luckily, an observant investor noticed it and advised me which led to me writing the post Investing in the AAT770 Daily Interest Savings Account for InvestorLine RRSP and TFSA Accounts.

UPDATE: As of November 2013, AAT770 is only paying 1.25% per year. Grrrr.
UPDATE: As of January 2015, AAT770 is only paying 1.20% per year.
UPDATE: On March 18, 2017, AAT770 is paying 0.75%.
UPDATE: On October 3, 2017, AAT770 is paying 0.95% per year.
Here’s how to invest in AAT770:

Sign in to your BMO InvestorLine account.

  1. From the drop-down menu, select within which account you wish to purchase the high interest savings account fund.
    For example, I selected my LIRA.

How to Buy Units of AAT770 the BMO High Interest Savings Account Fund

  1. From the Trading tab, select Fixed Income.
    1. Under the Inventory Search section, click on the High Interest Savings link.
    2. Click on the BMO CAD High Interest Savings Account link.

    OR

    1. From the Inventory Search menu, select GICs.
    2. Click on the Search button.
    3. Click on the link: Looking for an alternative for the cash in your portfolio?
    4. Review the list (especially in case InvestorLine comes up with a better offer!).
    5. As of April 11, 2013, the best The only Canadian dollar choice is the AAT770 BMO CASD High Interest Savings Account, so click on that named link.

The Mutual Fund Order Entry screen opens.

  1. Check that the Action is Buy. If not, select it from the drop-down list.
  2. Confirm that the Fund Symbol is AAT770.
  3. If desired, click on the Recent Closing Price button.
    This should show a value of 1.00 and state that the fund is No Load.
  4. In the field Amount in Dollars, type in the amount you want to invest in Canadian dollars.
    For this test, I typed 5523.
    (I actually tested it first entering 550 as the Amount in Dollars.
    It came back with the error message:
    Your order was not processed. There is a problem with your order:
    Quantity entered does not meet minimum purchase levels.)
  5. Select where the interest should be paid: to
    • your cash account, or
    • reinvested in more units of the fund,

    by clicking on the radio button beside Cash or Reinvest.

  6. Type your telephone number in the Contact Phone # field.
  7. Click on the Review Order button.

The Mutual Fund Order Review screen opens.

  1. Read through the Mutual Fund Order Review screen to be sure you know what you are buying and the terms.
  2. If everything looks ok, type your password in the field labeled:
    Please enter your password in order to submit your order.
  3. Click on the Submit Order button.
  4. Highlight the information about your order on the Mutual Fund Order Confirmation and paste it into a document.
  5. Save it for reference until the order is successfully filled.

If you want, click on the Trading menu and select Order Status.
You should see a description of your recent transaction.

Be Aware It Will Take Time for the Transaction to be Reported Properly
Today, the first business day after I placed my order:

  • my cash balance is too high.
    It states I still have the cash that I spent yesterday buying the HISA fund.
    Be careful you don’t spend the same cash twice!
  • my Holdings does not include the HISA fund yet
  • if I check my Order Status, however, by clicking on the Trading tab and selecting Order Status, it shows my purchase order as Filled.

I expect to check tomorrow and find that both my Holdings and my Cash balance have been updated.

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How to Buy a GIC in a BMO InvestorLine Account

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UPDATE: In late 2015, BMO InvestorLine changed its GIC purchase procedures. Please see the newest article: How to Buy a GIC at BMO InvestorLine with the New (2015) Fixed Income Investment Screens

If you keep a base of GICs in your RRSP portfolio like I do, you may decide to buy and manage them through your online brokerage account. Doing so makes renewals simpler and helps ensure you get a competitive rate without phoning your bank time and again to complain. There is no fee or commission to purchase GICs through a BMO InvestorLine account. The rates, perhaps surprisingly, are the same as those offered directly from the same financial institutions. For a list of which institutions InvestorLine lets you buy from, please check the article Comparing GIC Rates for BMO InvestorLine, CIBC Investor’s Edge. When you’re ready to spend your money, here’s how to buy a GIC from InvestorLine.

How to Purchase a GIC in your BMO InvestorLine Account

Sign in to BMO InvestorLine

  1. Go to https://www.bmoinvestorline.com/
  2. To sign in, type your User ID or Account Number, and Password and click on the Go button.
  3. If you have more than one trading account, from the drop-down list select the account within which you want to buy the GIC. For example, I selected my RRSP account.

Review the List of Available GICs and the Terms of Sale

  1. From the Trading Tab, select Fixed Income.
  2. From the Inventory Search column, select GICs.
  3. Unless you have some specific search criteria you wish to use, on the Inventory Search – GICs screen, click on the Search button. This will generate a list of all available GICs. For details on what types are offered look near the end of this article.
  4. If you don’t remember the details, read through the conditions which apply to GIC purchases. For example, the trading hours are 9:30 a.m. to 3:45 p.m. except on early closing days. GIC purchases close the next business day. (T+1)
  5. The list is sorted by Type and Cashable, then by Term, then by Interest Rate.
  6. When you spot the GIC you want to purchase, click on the corresponding name of the financial institution offering the GIC in the column on the left.
    For example, I selected a 1 year annual interest GIC from Home Trust Co at 1.85%.
  7. If you are not sure who the financial institution is, it’s worth taking a minute to visit their website and look at the company details. Also, you can always check whether they are covered by CDIC insurance by checking the list on the CDIC website, www.cdic.ca/.

To Order a Listed GIC

  1. On the GIC Order Entry screen,
    In the Amount box, type the amount of the face value of the GIC you wish to purchase. The minimum is usually $5000. You can choose odd amounts like $5023 if you wish, for instance if you are re-investing interest, income or dividends.
  2. In the Contact Phone Number, type the number you can be reached at to discuss this purchase.
  3. Click on the Review Order button.
  4. The GIC Order Review screen will open.
  5. Please note: Once submitted GIC orders can NOT be cancelled! If you choose a non-cashable GIC (which is most of those offered) your money will be locked in for the term of the certificate. Most GICs are not cashable!
  6. Review the amount, term, interest rate, interest payment terms, and issuing company.
    If everything looks fine, in the Please Enter Your Password to Submit This Order field, type your password.
  7. Click on the Submit Order button.

Be aware that the money will not be removed from the display of your Cash account until the second next business day! Be careful not to spend the same money twice, accidentally.

What Happens After You Purchase a GIC from BMO InvestorLine

You will receive confirmation that the order is filled in your Transaction History in 2-3 business days.

Usually, you will also receive a paper statement in the mail confirming the purchase and its terms.

When any interest is payable, it will appear in the Cash section of your trading account. It usually appears one business day after it was payable, but is back dated to the date it was paid. For example, if the certificate matures on April 10, 2013 (a business day), the cash will be in your account on April 11, but the posted date in the transaction history will say April 10. NOTE: BMO states that interest payments can take 1-5 business days to be received.

When the certificate matures, the original principal will be returned to your Cash balance in your trading account. Certificates do NOT rollover or re-invest. You will receive a message on your MyLink secure email about a week before a certificate matures to remind you to reinvest the money.

As with interest payments, the capital usually arrives in your cash account on the business day after the certificate matures. In the transaction history, this payment will be back dated to the date the certificate matured.

Typical Types of GICs Offered for Purchase by BMO InvestorLine

  • GICs cashable after 30 days with a term of 1 year (all other GICS are NOT cashable!)
  • 1 year GICs that pay interest when they mature
  • 1 year GICs that pay interest twice per year (note they offer lower interest rates than those that pay interest only once per year)
  • 1 year GICs that pay interest monthly (note these often have interest rates comparable to the semiannual GICs)
  • 2, 3, 4, or 5 year GICs that pay interest at the end of each year
  • 2, 3, 4, or 5 year GICs that pay interest at maturity, and the interest compounds after each internal annual payment of interest
  • 2, 3, 4, or 5 year GICs that pay interest twice per year (note they offer lower interest rates than those that pay interest only once per year)
  • 2, 3, 4, or 5 year GICs that pay interest monthly (note these often have interest rates comparable to the semiannual GICs)

NOTE: No GICs are listed with terms longer than 5 years. This is good as CDIC only insures GICs with terms of 5 years or shorter.

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