Investment Savings Accounts:
Frequently Asked Questions
What is an Investment Savings Account (ISAs)?
An ISA is a savings account that can only be purchased through a financial advisor. An ISA is similar to a savings account at a bank branch. The main difference is that it is processed through "Fundserv."
Is the Investment Savings Account a mutual fund?
ISAs are not mutual funds. ISAs are savings accounts. ISAs have a fund code because they are processed via Fundserv.
What are the benefits of an ISA?
The beauty of an ISA is its simplicity. They are easy to trade, easy to explain to clients and provide easy access to cash when needed. Unlike the money market, principal and interest are guaranteed.
What is the compensation paid on an Investment Savings Account?
- 0.25% per annum is paid to the Dealer (based on the average monthly balance) for DYN 500,DYN 1300, DYN 400 and DYN 1350.
- 0.10% per annum is paid on Series E ISAs and the Corporate Series A ISAs, including DYN 1325, DYN 1326, DYN 589, DYN 470, DYN 1510, DYN 1511, DYN 1280 and DYN 1282.
- No compensation is paid on fee based (series F) ISAs: DYN 1301, DYN 550, DYN 1512, DYN 1282, DYN 1351, DYN 450, DYN 1513, DYN 1283.
How is interest calculated and paid?
Interest is calculated daily and credited to the ISA account monthly or at the time of withdrawal or transfer. For partial months, interest is prorated for the number of days the funds are invested.
Where can I find current interest rates?
Current rates are posted on the Scotiabank Advisor Deposit Services website: ads.scotiabank.com under the "Rates" tab.
Who is eligible to purchase an ISA?
- ISAs are available to Canadian residents only.
- Opening multiple accounts in the same series on behalf of a single client for the purpose of exceeding the maximum investment is not permitted.
Can Corporate/Non-personal clients still purchase the Personal/Non-Personal ISA series?
Corporate and non-personal accounts are eligible to purchase the Personal/Non-Personal ISA series up to a combined maximum of $7.5MM per issuer. Purchases above this amount should be placed in one of the Corporate/Non-personal ISA series.
Are ISAs available for off-book (client name) accounts?
Yes. ISAs are available on client name and nominee name accounts.
Are there account minimums and maximums?
There are no minimums or maximums for personal accounts in the Personal/Non-Personal ISA series (DYN1300, DYN1301, DYN1350, DYN1351, DYN500, DYN550, DYN400, DYN450), except Series E (DYN1325, DYN1326, DYN589, DYN470) which has a minimum initial purchase of $100,000. Corporate/Non-personal accounts in these funds are limited to a combined maximum of $7.5 MM CAD per issuer.
The Corporate/Non-Personal ISA series (DYN1510, DYN1512, DYN1511, DYN1513, DYN1280, DYN1282, DYN1281, DYN1283) have no minimums or maximums for Corporate/Non-personal accounts.
How long does it take clients to get their money when they need it?
Withdrawals (redemptions) settle via Fundserv the following business day (T+1 settlement).
Are ISAs eligible for CDIC insurance?
Deposits held in Canadian currency are eligible for deposit insurance coverage under the Canada Deposit Corporation Insurance Act. For more information on CDIC rules (including maximums), please visit www.cdic.ca or call 1-800-461-2342. CDIC coverage can be maximized through the purchase of a Bank of Nova Scotia ISA and an ADS Canadian Bank ISA.
What expenses are associated with an ISA?
We do not charge fees. There are no management fees/MERs because there are no underlying investments. However, transaction fees may be charged by the Dealer.
What is the unit value/net asset value for these accounts?
The unit value is fixed at $10 per unit. The unit value will never fluctuate because ISAs are not linked to the market in any way. The unit value is a number that was set solely to facilitate the purchase of ISAs on Fundserv.
There is technically no net asset value for Investment Savings Accounts as they have no underlying investments and are not linked to the market.
I have a client who is a US resident. Can they invest in these accounts?
Clients must be residents of Canada to invest in these accounts.
How does the USD ISA work?
The ISA investment is in US dollars. Interest is paid in US dollars. At no point does the USD ISA get converted to Canadian dollars.
Can I set up a Pre-authorized Chequing (PAC) or a Systematic Withdrawal Investment Plan (SWIP) on ISAs?
PACs and SWIPs can be set up on Canadian dollar ISAs only. The PAC minimum is $100.00.
Can I use "dollar cost averaging" to purchase Dynamic mutual funds using the money in my client's ISA?
Our SMART Plan allows your client to make regular automatic transfers (switches) between the BNS or ADS Canadian Bank Investment Savings Account and a fund that your client holds with Dynamic Funds. Your client can choose to do so monthly, quarterly, or semi-annually, in an amount no less than the minimum amount of the Dynamic fund chosen by completing the SMART Plan section on the Dynamic application form or through a Letter of Direction. For more information please contact an ISA specialist at 1-866-884-3434.
Is it possible to write a cheque or use a debit card with this account?
These options are not currently available.
What tax receipts will my clients receive?
Clients will receive an annual T5 tax slip detailing interest earned.
What are the underlying investments?
There are no underlying investments, because the ISA is not a mutual fund. Scotiabank has the obligation to repay the investor - just like a regular bank account.
Where can I get a copy of the prospectus?
Because an ISA is not a mutual fund, there is no prospectus. The terms and conditions of the account are located on our website under the "Documents" tab.
Who do I call for account related questions?
Please call our Customer Relations Centre at 1-866-884-3434.