Savers Roundup September 2024: Round 3 of rate cuts

If you weren’t paying attention this summer, you might have missed 3 key interest rate cuts – for 25 basis points each – from the Bank of Canada already, with the latest decrease coming on September 4. This is before the US has made any cuts, although our southern neighbours are widely expected to make a cut on September 18. The Governor of the Bank of Canada stated “If inflation continues to ease broadly in line with our July forecast, it is reasonable to expect further rate cuts”.

Each round of cuts have triggered predictable decreases in savings account interest rates. The top two rates — at Motive Financial and Neo Financial — have yet to budge at 4.10% and 4.00% respectively, but we’ll see how long they can hold out.

If you factor in the rate you get if you have regular direct deposits, EQ Bank’s 4.00% rate would be near the top of the leaderboard. EQ has kept that rate even after decreasing its base savings account and TFSA rates to 2.25% and 2.75%. There has been a good amount of discussion on our forums about its 30 Day Notice Savings Account, but that rate has now dropped from 5.00% to 4.25%.

GIC interest rates continue to fall, with the top non-broker rates we track as follows:

• 1 year: 4.75%
• 2 year: 4.60%
• 3 year: 4.30%
• 4 year: 4.25%
• 5 year: 4.25%

Shorter GIC terms first started to offer higher rates (than longer terms) at the beginning of 2023, and that trend continues today.

The upstarts are popular

A whopping 71% of poll respondents last month said they have an EQ Bank account, and 29% have a Wealthsimple account. 78% of respondents have an account with at least one of the two.

Peak promos for savings accounts?

You can get at least 5.00% in a savings account via short-term promotional rates from the likes of DUCA Credit Union, Manulife Bank, Tangerine Bank, and Vancity as listed on our promos page. Simplii Financial remains the headliner with 6.25% for the first 5 months for new customers. In an environment where rates are dropping, will this be the best we get for the foreseeable future?

Student credit cards

Lena M, who shared her journey on choosing a student bank account a couple of months ago, is back with her review on choosing a student credit card. She has broken down her considerations for a first credit card, and narrowed down her options!