105 articles Comparison Page 16 / 21

Steady or dropping rates

Central bank interest rate news in Canada and the US in July have been about keeping rates steady or perhaps even decreasing them (in the case of the US). Over at Achieva Financial and AcceleRate Financial, they’ve both decreased their regular savings and TFSA interest rates from 2.40% to 2.30%.

On our comparison chart, MAXA Financial remains at 2.45%, while Implicity Financial and Outlook Financial remain at 2.40%, at least for now. The Manitoba credit unions especially have a history of keeping their rates roughly in sync. Will more drops follow?

The regular savings account interest rate leader is still Motive Financial at 2.80%, and the TFSA leader is motusbank at 2.50%.

How to get up to 3.00% in the short term

As per our GIC chart, you’ll need to lock your money in for at least 4 years if you want to get at least a 3.00% annual return outside of a promotion.

motusbank’s 18-month GIC promo for non-registered accounts has decreased from 3.00% to 2.75%, or from 3.10% to 2.85% for the TFSA and RRSP versions.

However, EQ Bank has a current promotion for a 3.00% 3-month GIC. At National Bank, you can get 2.75% in a High Interest Savings Account until September 5, 2019, and if you’re a Simplii Financial customer, you might have received a targeted promo of between 2.50% to 3.00% on new deposits between July 1 and October 31, 2019. Check our promotions page for several more new deposit and new account promotions.

Financial institution online interface screenshots

New on HighInterestSavings.ca are image galleries of financial institution online interface screenshots! Beyond rates, fees, and general features, a key consideration for many people when choosing a new bank or credit union is the usability of its online interface, including account balance listings, sending Interac eTransfers, and more. We’ve started with website screenshots of EQ Bank, Hubert Financial, Motive Financial, and Tangerine Bank. Are there any particular screens that you would like to see? Or are you able to contribute some screenshots from the financial institutions you bank with? Let us know!

In other personal finance news…

• Data leak for 2.9 million Desjardins (over 40%) members; no reports yet that it affects former Zag Bank clients
• Omnia Direct shifting focus away from GICs to mortgages?
• Our EQ Bank cash back offer is back: get $30 for opening an EQ Bank Savings Plus account

More nationally available Manitoban credit unions

Credit unions based in Manitoba routinely offer some of the highest savings account interest rates on our chart. Several more Manitoban credit unions have become nationally available with online account opening processes. Access Credit Union, Fusion Credit Union, Niverville Credit Union, and Rosenort Credit Union were recently highlighted in our forum, with competitive savings account interest rates (including up to 2.85% in a TFSA) and GICs (up to 3.20% for a 5-year term). Please share your experiences and questions!

Bridgewater Bank, Hubert Financial, and Peoples Trust rate decreases

Although we haven’t seen many interest rate decreases lately, a couple of notable ones include Bridgewater Bank decreasing its regular savings account interest rate from 2.50% to 2.35% and Hubert Financial decreasing its regular savings account and TFSA interest rates from 2.35% to 2.25%. In Hubert Financial’s case, this followed a drop from 2.50% to 2.35% in April. The chart leaders are unchanged: Motive Financial has a 2.80% regular savings account, while motusbank has a 2.50% TFSA.

Last month, Peoples Trust dropped its GIC rates; current GIC chart leaders are Oaken Financial for 1-4 year terms and Ideal Savings for a 5-year term.

Manulife’s new All-In Banking Package

Following the launch of its 3.25% for 6 months savings account promo (which is still available), Manulife has a new account type, which is actually several combined offerings: a chequing account, savings account, credit card, and travel insurance, as well as 1 year of free Amazon Prime. It has a $10 monthly fee, which is waived every month that you increase your balance by at least $100. Will this become a real competitor for day-to-day banking, and will we start to see better reviews of Manulife Bank?

Tangerine Bank’s latest targeted promotion includes US dollar savings accounts

A new detail in Tangerine’s continuous targeted promotions is that its latest offer of 2.75% for new deposits (until November 30, 2019) includes USD funds. If you’re a current customer, check the “Insights” tab in your online account to see if you have received the offer. If you’re not a current customer, their “2.75% for the first 6 months” offer also covers US dollar savings accounts.

More promotions

• Targeted promo on the CIBC eAdvantage Savings Account: 3.00% on new deposits until July 31, 2019
• Luminus Financial 5-year escalator GIC with 3.50% average interest rate (1.50%, 2.50%, 3.50%, 4.50%, 5.50% for years 1-5)
• motusbank: 3.10% for an 18-month TFSA or RRSP GIC; 3.25% for a 5-year RRSP or TFSA GIC motusbank: 3.10% for an 18-month TFSA or RRSP GIC
• See all current promotions

More news and discussions

• motusbank is out of debit cards until the end of June
• MAXA Financial’s fees include $20 to add an electronic funds transfer (EFT) and $5 to change an existing EFT setup
• WestJet RBC World Elite Mastercard: good value for semi-frequent flyers
• Rumour: Amazon.ca is coming back with a credit card; this time a Mastercard?

Bank of Canada rates on hold; Hubert Financial and Ideal Savings decrease rates

Last month, the Bank of Canada left the key interest rate at 1.75%, and they also removed their previous language about the possibility of rate hikes later in the year.

On the savings account end, there have been a few recent interest rate drops to both regular savings and TFSA accounts: Ideal Savings (from 2.50% to 2.40%), Hubert Financial (from 2.50% to 2.35%), and Meridian Credit Union (from 1.40% to 1.30%). Meridian Credit Union now provides 24-72 hours notice of rate changes via e-mail and on their website, although we no longer list Meridian Credit Union on our main comparison chart.

Motive Financial is the current leader on our chart for regular savings accounts at 2.80%, while motusbank is the TFSA leader at 2.50%.

Steinbach Credit Union offers some of the highest savings account rates (2.55% to 2.85% depending on your balance) and its TFSA sits at 2.80%, although interest is paid annually and calculated on the minimum monthly balance.

GIC rates are flat

Last month saw nearly across-the-board GIC rate decreases. This seems to have settled a bit, with even a few small increases, such as at Oaken Financial. Either Peoples Trust or Oaken Financial hold the top spot for the 1- through 5-year GIC rates on our GIC chart, and Peoples Trust has a 15-month GIC promo at a 3.10% interest rate.

HSBC and Manulife promos for ~6 months

Of the current high interest savings promotions, the most frequently discussed ones are:
HSBC High Rate Savings Account: 2.40% to 3.00% on new deposits between April 15 and September 3, 2019 and
Manulife Advantage Account: 3.25% for 6 months in new accounts.

Business savings accounts options: up to 2.65%

Meridian Credit Union has a business savings account promo (2.65% for 4 months). that compares well against the alternatives. Outside of a promotion, Oaken Financial might be your best option in a normal rate at 2.30%, since it offers the same rate for personal and business accounts. Or, get an account at a discount brokerage and look at the Investment Savings Account options, which should give you better rates than the standard business savings accounts offered at the big banks.

Much more news!

• Forum member Doug has made a comprehensive update to our free Canadian chequing accounts comparison spreadsheet
• See the results of our 2019 personal income tax filing survey, including: 48% of respondents pay nothing at all to file their personal income taxes, and those who use software (92%) are likely to use one of StudioTax, TurboTax, SimpleTax, or UFile.
• Oaken Financial adds ability to link an unlimited number of external accounts
• The Scotiabank Gold American Express credit card will have no foreign currency exchange fee starting August 1, 2019
• The EQ Bank referral program ($25 for referrer and referee) is back until July 8, 2019

The newest online bank: motusbank

motusbank is Canada’s newest online bank. motusbank launched with a comprehensive offering of products, including a no-fee chequing account with unlimited Interac e-Transfers; savings accounts available in non-registered (2.25% interest rate), TFSA (2.50%), and RRSP and RRIF (2.25%) versions; and GICs. Its regular savings account interest rate is competitive but lower than most of the other financial institutions on our comparison chart, while its TFSA rate is tied for first.

motusbank’s marketing so far has focused more on their credit products such as their mortgages (1- through 5-year fixed mortgage rates are all 3.09%) and personal loans.

So far, motusbank looks like worthy competition for other day-to-day online banks such as Alterna Bank, EQ Bank, and Motive Financial, as well as the bigger names such as Tangerine Bank and Simplii Financial. Forum members have reported that the motusbank account opening process is straightforward, although electronic funds transfers from other banks take several days more than the competition.

Share your questions and experiences on our motusbank forum!

A flat or dropping interest rate environment for savers

Over the past month, there have been a couple of small savings account interest rate drops: Meridian Credit Union decreased its regular savings account and TFSA interest rates from 1.50% to 1.40%, and Alterna Bank decreased its regular savings account interest rate from 2.35% to 2.30%.

As well, every financial institution on our GIC comparison chart decreased at least one of its GIC rates. Click on any of the dates in the “Updated” column to see GIC rate histories for each financial institution. Hubert Financial is tied for the lead or has the outright lead for every term on our list: 3.00% for 1 year, 3.10% for 2 years, 3.20% for 3 years, 3.30% for 4 years, and 3.40% for 5 years.

If you’re seeking better rates, consider looking into GIC brokers. For example, for amounts of at least $25,000, GIC Wealth Management has some attractive rates. See also our promotions page with offers such as:

• 3.00% for a 12-month term deposit, redeemable after 180 days at BC-based G&F Financial Group
• 3.00% until January 31, 2020 on new money deposited to a savings account at Ontario-based DUCA Credit union
• 3.00% interest for 3 months when you open your first RBC High Interest eSavings Account
• Targeted new deposit promos from Canadian Tire Financial, CIBC, Tangerine, Simplii Financial, RBC, and BMO

A forum member also discovered a now-expired 3.25% 15-month GIC with a unique rate guarantee: the rate goes up if the Bank of Canada rate goes up. This was from Pen Financial Credit Union, based in Ontario’s Niagara region.

More news

• Fill out our 2019 Canadian personal income tax filing survey by the end of day on April 19 for a chance to win 1 of 2 $50 cash prizes
• Starting April 30, 2020, CDIC rules will expand to cover GICs longer than 5 years and foreign currency deposits
• Get $110 cash back for opening a Scotiabank Gold American Express credit card
• Get $35 cash back for opening a savings account or GIC with motusbank

Free Canadian income tax software

For most adult Canadians, personal tax returns are due in 1.5 months. Do you use income tax software, and if so, do you pay for it? This week, we released an article highlighting free Canadian income tax preparation software options. For further discussion on all aspects of income tax preparation, check out our newly created forum on income tax filing!

GIC rate histories and promotions

As a supplement to the GIC rates comparison chart, we now have GIC rate histories (for non-redeemable GICs) for each financial institution. Simply click on the date link in each row, or click the “GIC rate histories” link on any bank profile page. For example, you can see just how often Motive Financial has been updating its rates, which have been in the downward direction lately. GIC rates have been on a downward trend across the board, and the current regular rate leaders are those who have not made any recent rate changes.

As per usual, you can find some better GIC rates through promotions, with a couple of examples from our promotions page being from Ontario-only credit unions, such as 3.51% for a 3-year GIC at PACE Credit Union and 3.75% for a 5-year GIC at Tandia Credit Union. As well, nationally available Wealth One Bank of Canada has a somewhat unique current offer of a 0.20% cash back bonus per GIC term year on new deposits. For example, you get a 1.00% bonus (paid once) for a 5-year GIC.

Peoples Trust increases rates; Ideal Savings decreases rates

In the first rate change since December on our savings account comparison table , Peoples Trust increased its regular savings account interest rate from 1.65% to 2.00%; its TFSA is up from 1.65% to 2.25%.

Ideal Savings decreased its regular savings account and TFSA interest rates from 2.76% to 2.50%, dropping it into a tie for the TFSA lead with Hubert Financial. Motive Financial remains the leader for a regular savings account interest rate at 2.80%.

More reading

• A listing of GIC options for small businesses
• More rounds of targeted new deposit promos from Tangerine Bank and Simplii Financial
• Meridian Credit Union new customer promo available to everyone: $100 bonus when you open a Good To Grow High Interest Savings Account with a minimum initial deposit of $1,000
• More news from soon-to-be-launched motus bank: its high interest savings account will have unlimited Interac e-Transfers, RRSP and TFSA options, and more
• EQ Bank now offers unlimited Interac e-Transfers