Savers Roundup January 2022: CIBC’s 3.25% GIC and other new rate leaders; what’s your TFSA plan?

A big bank is a GIC rate leader

CIBC currently has a 3.25% 5-year GIC, which applies to a non-registered, TFSA, or RRSP GIC. That beats the best 5-year rate on our GIC comparison chart (3.00% at Hubert Financial) and it’s unusual for a big bank to be a rate leader.

Despite this market-leading rate, some of our forum members are being cautious. Are other banks (big banks or not) going to match the rate? And with the Bank of Canada’s key interest rate expected to increase this year, will there be further GIC rate increases? Or should you just stick to a GIC laddering strategy?

Wyth Financial takes the outright lead for a savings account interest rate

It’s the new kids on the block Wyth Financial (1.55%), Ontario-only Saven Financial (1.50%), and Neo Financial (1.30%) leading our high interest savings comparison chart to start 2022. Rate leaders at the beginning of each of the previous 5 years were Canadian Tire Bank (in 2021), Motive Financial (in 2020 and 2019), and EQ Bank (in 2018 and 2017).

After launching in November with a 1.40% rate, Wyth Financial increased its savings account interest rate to 1.55% in mid-December.

None of Wyth Financial, Saven Financial, and Neo Financial offer a TFSA, though. Wealth One Bank of Canada continues to have the highest non-promotional TFSA interest rate on our chart at 1.50%, followed by a 4-way tie at 1.25%.

What’s your TFSA plan?

Are you going to max out your $6,000 in additional TFSA contribution room this year? If so, that would put you in a small minority of Canadians.

For those who have a TFSA at all (of any size), are you aware that you can use it for more than a savings account? According to a 2020 BMO study, 41 per cent of those with a TFSA use it for mutual funds or stocks. Almost a quarter of respondents were unsure of what could go in a TFSA.

What are your TFSA plans for 2022? Take our short TFSA survey for a chance to win one of 6 x $50 cash prizes!

If you’re going to choose to put some or all of your TFSA funds in a savings account or GIC, be sure to check out our promotions page, which currently includes the following:

• Tangerine Bank: 2.15% for a 3-year registered (TFSA/RRSP/RRIF) GIC
• EQ Bank: 2.00% for a 3-month TFSA or RRSP GIC until January 20, 2022
• motusbank: 2.25% for 122 days in your first TFSA savings account

Featured cash back offers

• HSBC World Elite Mastercard: up to 100,000 bonus points, no annual fee for the first year, no foreign currency exchange fee, plus $105 cash back
• Tangerine Money-Back Credit Card: Earn an extra 15% back (up to $150) when you spend up to $1,000 in everyday purchases within your first 2 months, plus $45 cash back or a $50 Amazon.ca gift card
• Scotiabank SCENE Visa Card: no annual fee, plus $50 cash back