Savers Roundup May 2019: Bank of Canada’s flat interest rate outlook; 3.25% Manulife promo; up to 2.65% for business savings

Bank of Canada rates on hold; Hubert Financial and Ideal Savings decrease rates

Last month, the Bank of Canada left the key interest rate at 1.75%, and they also removed their previous language about the possibility of rate hikes later in the year.

On the savings account end, there have been a few recent interest rate drops to both regular savings and TFSA accounts: Ideal Savings (from 2.50% to 2.40%), Hubert Financial (from 2.50% to 2.35%), and Meridian Credit Union (from 1.40% to 1.30%). Meridian Credit Union now provides 24-72 hours notice of rate changes via e-mail and on their website, although we no longer list Meridian Credit Union on our main comparison chart.

Motive Financial is the current leader on our chart for regular savings accounts at 2.80%, while motusbank is the TFSA leader at 2.50%.

Steinbach Credit Union offers some of the highest savings account rates (2.55% to 2.85% depending on your balance) and its TFSA sits at 2.80%, although interest is paid annually and calculated on the minimum monthly balance.

GIC rates are flat

Last month saw nearly across-the-board GIC rate decreases. This seems to have settled a bit, with even a few small increases, such as at Oaken Financial. Either Peoples Trust or Oaken Financial hold the top spot for the 1- through 5-year GIC rates on our GIC chart, and Peoples Trust has a 15-month GIC promo at a 3.10% interest rate.

HSBC and Manulife promos for ~6 months

Of the current high interest savings promotions, the most frequently discussed ones are:
HSBC High Rate Savings Account: 2.40% to 3.00% on new deposits between April 15 and September 3, 2019 and
Manulife Advantage Account: 3.25% for 6 months in new accounts.

Business savings accounts options: up to 2.65%

Meridian Credit Union has a business savings account promo (2.65% for 4 months). that compares well against the alternatives. Outside of a promotion, Oaken Financial might be your best option in a normal rate at 2.30%, since it offers the same rate for personal and business accounts. Or, get an account at a discount brokerage and look at the Investment Savings Account options, which should give you better rates than the standard business savings accounts offered at the big banks.