Savers Roundup August 2023: We’ve reached 6.00%

This time last year, we wrote that 5.00% was the new 4.00%. Looks like the new benchmark is 6.00%.

If you’re not yet a Simplii Financial customer, you can get 6.00% for the first 5 months in their savings account. This handily beats other new account offers such as BMO’s 5.00% savings account offer, and narrowly tops Tangerine’s 5.75% savings account offer. Among the other promotions listed on our website is DUCA Credit Union’s 5.25% interest rate on new deposits to an Earn More Savings Account, which has been extended until January 31, 2024.

Tiered interest rates

Are tiered savings account interest rates becoming a thing? Last month, Simplii Financial introduced a higher rate (which is now 5.50%) for all customers with balances above $1 million. Now, Laurentian Bank is offering 4.00% for balances between $100,000 and $5 million. If you have less than $100,000, the interest rate is 3.00%.

Decent rates for everybody else

Over the past month, 7 out of the 19 accounts we track on our savings account comparison chart increased their rates. Perhaps more notably, Ontario-only Saven Financial has launched a TFSA with a 4.00% interest rate, although that still trails Motive Financial, whose regular savings account and TFSA interest are both at 4.10%.

Canadian Tire Bank, which is one of the most infrequent rate changers on the savings account side, has increased its regular savings account and TFSA interest rate from 3.00% to 3.50%. Its GIC rates continue to change several times per week – such a high frequency is unheard of at the other financial institutions we track. The GIC rate leaders are generally LBC Digital, Motive Financial, and EQ Bank, which have all seen recent rate increases. The top non-broker rates on our GIC comparison chart are:

• 5.60% for a 1-year GIC
• 5.60% for an 18-month GIC
• 5.65% for a 2-year GIC
• 5.35% for a 3-year GIC
• 5.10% for a 4-year GIC
• 5.10% for a 5-year GIC