Overview of Investment Savings Accounts (ISAs)

What’s an ISA?

An ISA, which stands for investment savings account, is better alternative to more common “high-interest” saving accounts (HISA) as they offer a better interest rate.

To open an ISA account, you need to open a brokerage account. ISAs offer an interest rate that’s like a non-redeemable GIC, without the downside of locking funds for a certain period.

ISAs can be compounded monthly.

RBC Direct Investing

RBC Investment Savings Account, Series A (RBF2010) CAD

RBC Investment Savings Account, Series A (RBF2014) USD

BMO InvestorLine

BMO High Interest Savings Account (BMT104) CAD

Scotia

Scotiabank Investment Savings Account, Series A (DYN6000) CAD              

TD

TD Investment Savings Account, Series A (TDB8150) CAD

FAQs

Are ISAs CDIC insured?

ISAs are CDIC insured up to 100K per account.

Is there a minimum deposit amount?

No minimum deposit account is required

Are there any fees or commissions associated with buying an ISA?

No

Do interest rates vary?

Yes, interest rates can vary depending on Bank of Canada rate changes

Can an ISA be opened under a registered account?

Yes

How are the returns from ISAs taxed?

Returns are taxed as regular interests and a T5 is issued.