Outlook Financial: offers a 1.20% HISA, 15. Based on research conducted by Equitable Bank comparing HISA interest rates of Canada’s ‘Big 5’ banks over a 12-month span on an investment of $100. Their HISA is called “Wealthsimple Cash” and offers an interest rate of 0.75%. Money that is deposited in a HISA account generates interest by allowing the bank to access those funds to loan to others. All the online banks listed above are members of the Canada Deposit Insurance Corporation (CDIC). If you are ‘in’ and ‘out’ of your account too frequently, then your money is not earning as much for the bank and they are unable to justify paying you higher rates. That was my only acct I had with them. High-interest savings accounts, or HISAs, pay interest rates typically ranging from around 1-3%. Want to write a comprehensive review on any of the bank accounts… RBC offers a 90 day 2.25% then 1% for 90 days after that. Very hard to pick the better choice…. Again, most online-only banks waive these fees, except for free Interac transfers which often have a limit. We make … However, you will need to read the terms and conditions very well. They may also offer promotional rates that come up now and then. If you compare this to real estate or stock portfolio returns, you might wonder why you should hold a savings account at all. @Al: Yes, the offer from Tangerine is only for new clients. A high-interest savings account can help you earn some interest while keeping pace with inflation. Although these returns tend to be modest, they can help your money grow steadily to combat against inflation. Before choosing a bank to save with, take a look at their small-print including: EQ Bank is the online-only banking arm of Equitable Bank. Having a savings account is important if you want a safe way to set aside money, or for an upcoming major purchase, like a car or a down payment on a house. What about PeopleTrust? So I think Motive probably outshines them all because it is a pretty steady rate. 1.3% on saving (no promo just their regular rate). If your goal is a non-promotional interest rate that doesn’t bounce all over the place, EQ Bank and Motive Financial definitely shine in that area. What’s your overall investment portfolio like? Is the offered rate a promotional or introductory rate, or is it an ongoing non-promotional rate? The rates for GIC, like with many investments, go up and down with the economic environment. If a link has an asterisk (*) at the end of it, that means it’s an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. There’s no fee, but account holders can expect to pay service charges for many transactions. Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 2% range at the upper end. For details about their high-interest personal savings account … What’s the best high interest savings account canada? Recent hikes in rates by the BoC have not translated into higher savings rates being offered by the “Big” banks, and you can still find rates as low as a measly 0.01% on what is supposed to be a savings account earning you some income. You’ll get a very attractive interest rate when taking on or refinancing a mortgage, for example. Any reason? @Frank: I would consider EQ Bank, Tangerine and Motive Financial to be very competitive depending on your needs. Share this article The bank may also require you to maintain a minimum balance in order to earn the HISA rate. allow you to invest up to $6,000 per year and not pay any taxes on the earnings. In regard to Tangerine, it will not extend the advertised 2.1% promotional interest to existing customers. One for my emergency and one for my future condo that I plan to buy in 2 years. Also, different categories of deposits are individually covered even if they are with the same bank. The best rate I could get was 2% ,locked in for 1 year. The rates offered by savings accounts are controlled by the prime rate, which is linked to the Bank of Canada’s policy rate. High-interest savings accounts are not tax-free unless when held inside a TFSA. When I first opened my account, they were touting a 2.5% interest rate, which is amazing, so I put basically all my savings into this account. Are High-Interest Savings Accounts Taxable? motusbank is the newest digital bank in town and a subsidiary of Meridian Credit Union, the most popular credit union in Ontario and the third-largest in Canada. motusbank’s general savings account offers a 1.00% non-promotional interest rate. A savings account is an essential part of everyone’s personal finance portfolio. Hi Enoch what is your opinion about DUCA Credit Union? There are usually no monthly service fees associated with savings accounts since they are intended to serve as places for people to park their money for stretches of time. EQ here I come… Savings accounts are generally not the place to park your funds if you want to generate significant returns on it and realize some capital growth. The savings plans available within a TSFA may have somewhat lower interest rates than some other HISAs, but could be a better choice after considering the tax savings. If you read something you feel is inaccurate or misleading, we would love to hear from you. I have a surplus on my credit card (I always over pay each month) 2000$. MoneySense continues to update and make changes to correct any factual errors. The same goes for personal loans. Assumes no additional deposits or withdrawals made. 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