Savers Roundup July 2021: Summer of promos

Savings account interest rate increases!

There has been some moderately good news for savers recently, with a couple of savings account interest rate increases. Hubert Financial increased its regular savings account interest rate from 1.00% to 1.25% (although its TFSA/RRSP/RRIF savings accounts remain at 1.00%). Implicity Financial increased its regular savings account and TFSA interest rate from 1.10% to 1.20%.

The leaders on our comparison chart have remained unchanged since last month, although remember to look beyond the rate if needed and consider other account features. There are pros and cons with all accounts. For example:

• Canadian Tire Bank has the highest rate on our chart at 1.55%, but there have been lots of reports about how long it takes to open an account
• Neo Financial is next at 1.30%, but does not currently have an online banking interface or a TFSA
• EQ Bank is tied for third at 1.25%, but does not offer cheques
• Tangerine Bank has one of the highest new client offers with a 2.10% promo rate for 5 months, but after that, its regular savings account interest rate is a paltry 0.10%

GIC leaders beyond our comparison chart

The rate leaders on our GIC comparison chart are unchanged from last month:

• Oaken Financial has the highest 5-year (2.20%), 4-year (2.00%), and 3-year (1.70%) rates
• Achieva Financial and Wealth One Bank of Canada have the highest 2-year rate at 1.55%
• Achieva Financial has the highest 1-year GIC rate at 1.50%

Although these are not technically promotions, you can find even higher rates elsewhere, such as through the broker GIC Wealth Management Inc. (up to a 2.30% 5-year GIC) and through Ontario-only Tandia Credit Union (up to a 2.50% 5-year GIC).

Another summer of promos

If you are looking for a low-risk place to park cash for a short term, such as in advance of a down payment, or if you’re looking to try a new bank account, there are plenty of promos available.

• motusbank: 2.25% for the first 90 days in a new savings account or RRSP; 2.35% for the first 90 days in a new TFSA. Expires July 31, 2021.
• Tangerine Bank new customers: 2.10% savings account interest rate for the first 5 months if you also open a chequing account, plus $150 bonus for setting up payroll direct deposit with the promo code “EARNMORE”
• Tangerine Bank targeted promo for existing customers: 1.50% on new deposits in a savings account between June 9, 2021 and October 31, 2021
• Simplii Financial new customer promo: 1.50% in a savings account until October 31, 2021
• Simplii Financial targeted promo for existing customers: 1.50% on new deposits in a savings account until October 31, 2021
• Every one of the big 5 banks has a minimum $300 sign-up bonus promo for opening a chequing account. For example, Scotiabank’s promo is up to $300 cash for opening an Ultimate Package or Preferred Package chequing account
• Coast Capital chequing account: up to $350 sign up bonus for customers in BC (expires July 31, 2021)

We have a dedicated page to track promotions.

Credit card promos too

If you’re planning to make a lot of purchases this summer, you might also want to check out one of many credit card sign-up promotions, including:

• Tangerine Money-Back Credit Card or World Mastercard: An extra 10% back on your first $1,000 of purchases in the first 2 months
• … which is not unlike Scotiabank’s Momentum Visa Infinite Card promo: 10% back on the first $2,000 in the first 3 months. This card has an annual fee, but the fee is waived for the first year.
• National Bank’s mycredit Mastercard has no annual fee (first year or otherwise), and currently has a promo where you can earn 8% cash back on your first $1,500 of restaurant purchases and recurring pre-authorized payments in the first 3 months
• The Scotiabank Gold American Express Card has a promo of up to 50,000 bonus Scotia Rewards points in your first year, and no annual fee for the first year

Credit card changes

There has been a significant change to the MBNA Rewards World Elite Mastercard: you previously earned 2 points per dollar on all purchases; now, you will earn 5 points per dollar on groceries, restaurants, and recurring bills; and 1 point per dollar on all other purchases.

The American Express Cobalt credit card monthly fee is going up by $2.99 per month (about $36 per year) in exchange for some new features: mobile device insurance, 3x points on streaming service purchases, and the ability to transfer directly to certain airline frequent flyer programs, such as 1:1 to Aeroplan.