Savers Roundup July 2018: MAXA follows Bank of Canada increase; 2.50%+ savings promos; lots of GIC options

MAXA Financial kicks off the next round of savings account increases

On July 11, the Bank of Canada raised its key interest rate another 0.25%, triggering immediate increases in mortgage rates. Savers should see benefits too, but as per usual, the rate increases will happen slowly. MAXA Financial was the first to act of the financial institutions we track, increasing its regular savings and TFSA interest rates from 2.00% to 2.25% on July 12, after a previous increase to 2.00% on June 20. They are the current TFSA leader on our chart and are just below EQ Bank’s 2.30% for the regular high interest savings account lead. Check our chart, our news archive, and our Twitter feed over the coming weeks to see what other financial institutions raise their rates.

Wealth One ups the promo ante

Wealth One Bank of Canada, which offered 2.50% on the entire savings account balance for a few months at the end of 2017, is back with a promotional rate of 2.50% through September 30, 2018.

Back and forth: Tangerine and Simplii Financial promos

Meanwhile, with the Simplii Financial 2.50% promo finished at the end of June, Tangerine Bank has a couple of targeted promos. If you’re a current Tangerine Bank customer, be sure to log in to your account or call in to see whether you can get one of the promo variations that our forum members have reported: 2.75% for 6 or 9 months; 2.50% on new deposits for 6 or 9 months, or some variation thereof!

GIC summer plans: many options

On our GIC comparison chart, the general direction continues to be up, with Oaken Financial currently leading or tied for the lead in 1-year (2.80%) through 5-year terms (3.50%).

There are plenty of GIC promotions giving you a lot of choice, such as a 3.00% 1-year GIC at Omnia Direct (Ontario only), which has been going on since at least May. Even for those who stick with the “big banks”, CIBC has a GIC promotion, including 3.00% for a 5-year GIC (although note that you can get up to at least 0.50% more annually elsewhere!).

At Hubert Financial, their 1-year GIC offers some unique flexibility, giving you 2.55% (or slightly higher as calculated by some forum users, since the interest is compounded quarterly / every 3 months) after a year, but allowing you to cash out at 2.40% after 3 months, and a bit more after the second, third, and fourth quarters of the 1-year term. It’s refreshing to see a financial institution advertise an “escalating” term deposit in a straightforward manner!