Savers Roundup February 2020: 3.30% no more; calculating interest on minimum monthly balance; Wealthsimple Cash launch

LBC Digital rate couldn’t last: 3.30% no more

LBC Digital has announced that its savings account interest rate will decrease from 3.30% to 2.80% on March 1, 2020. This comes 3.5 months after its initial launch and drops it into a tie with Motive Financial at the top of our comparison chart.

Third place on the chart is EQ Bank, which recently increased its savings account interest rate from 2.30% to 2.45%. EQ Bank is no stranger to teaser rates, having implemented its first interest rate drop only 3 months after its launch in 2016. However, its rates have been relatively steady since then.

If you’re chasing a 3.00% interest rate, you might want to look into DUCA Credit Union (Ontario only), which currently has a new deposit promo of 3.00% between February 3 and May 30, 2020.

Higher rates but uncommon interest rate calculations

Most savings accounts calculate your interest on the daily closing balance and pay interest monthly. Access Credit Union and Steinbach Credit Union have savings account interest rates starting at 2.40%, and Rosenort Credit Union’s savings account interest rate starts at 2.60%. But all 3 accounts calculate your interest earned on the minimum monthly balance and pay out annually. Is this a deal breaker for you? Our quick Twitter poll said overwhelmingly that it is a deal breaker.

GIC specials on uncommon term lengths

For simplicity, we track 1- through 5-year GIC terms. There are currently plenty of GIC promos for non-standard GIC terms, including:

• Steinbach Credit Union: 2.40% for a 30-month GIC; 2.50% for a 45-month GIC; 3.00% for a 60-month (5-year) GIC
• MAXA Financial: 2.90% for a 50-month (just over 4 years) GIC
• Access Credit Union: 3.00% for a 46-month (just under 4 years) GIC and 2.70% for a 31-month GIC
• Buduchnist Credit Union (Ontario only): 11 months (2.50%), 21 months (2.70%), 29 months (2.80%), and 42 months (2.90%) until March 2, 2020
• DUCA Credit Union (Ontario only): 6.67-year cashable RRSP or TFSA GIC: 2.00% if you cash in after 1 year; 3.00% if you hold the GIC for the full 6.67 years until March 31, 2020

There are promos for more traditional terms too:

• Peoples Trust: 2.75% for 1-year GIC
• RCU Credit Union (Ontario only): 2.85% for a 2-year GIC (TFSA, RRSP, and RRIF only) until February 29, 2020
• Omnia Direct (Ontario only): 3.00% for a 5-year GIC

You can track them all on our promotions page.

All the news you can read

• Wealth is what you don’t spend
• Wealthsimple Cash review: Hybrid accounts, FinTech, and what it means for you
• EQ Bank joint accounts might be finally coming

Cash back this month

• Tangerine Mastercard (Money-Back and World Mastercard versions) is offering a $250 bonus if you spend $5,000 in the first 3 months, plus $45 cash back from High Interest Savings
• Scotiabank Momentum Visa Infinite: No annual fee in the first year, plus $100 cash back
• WealthBar: get up to $10,000 managed free for 1 year and $70 cash back when you open an account and deposit a minimum of $1,000