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Email this8:33 pm
May 15, 2007
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I've just been told about the BMO Smart Saver account, with an interest rate of 2.75%.
However, I don't see it as being a comparable option because:
- you must maintain a balance of at least $5,000; otherwise, you get no interest at all
- deposits are free, but you are charged $5 for the second and subsequent withdrawals in each month
- you pay a $2 monthly fee unless you consolidate the account's monthly statement with other BMO statements
9:50 pm
December 12, 2009
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Still, this makes BMO comparable (finally) to the other Big 4 Banks, particularly with RBC's eSavings account and Scotia's Money Master and new Power savings accounts. Previously, BMO's best account only offered like 1-1.5% and that was with something like a $60,000 minimum.
I think it's fair to say most people on this forum have at least $5,000 in their high-interest savings account so this may definitely be a viable option, if you bank with a Big 5 Bank that is and need the money instantly and can't wait 24-48 hours for an interbank transfer from a "virtual" bank like ING Direct, HSBC Direct or ICICI Bank, among others.
Good on BMO, anyway. 🙂
Cheers,
Doug
5:36 pm
November 26, 2008
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Well Doug,
I'd have to say that with HSBC, you actually don't have to wait 24-48 hours to acces your money.
You can easily access a little amount instantly with your debit card.
The day you become free is the day you work for fun.
9:40 pm
December 12, 2009
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Yes, Max. And, by no means would I advocate using BMO (I am not and have never been a BMO customer). There are definite downsides to this new BMO savings vehicle, but it at least makes BMO competitive where previously there were not.
And, yes, I am a fanatically loyal and happy HSBC Bank Canada customer. I have my banking almost exclusively with HSBC (two RRSPs, a Direct TFSA, GBP foreign currency high-rate savings account, chequing account, safety deposit box, and mutual funds). I am also employed by HSBC Bank Canada as a full-time branch customer service representative really enjoy that as well. 🙂
The best things about HSBC:
* Surcharge-free deposits, withdrawals, and balance enquiries at The EXCHANGE network ABMs as well as BMO Bank of Montreal ABMs;
* The Direct Savings Account and Direct Tax Free Savings Account;
* And, yes, if you have a credit score of 220 or higher, you can qualify for what we call a "class code 03" bankcard in which your deposits are not held for any length of time and available for access immediately.
Cheers,
Doug
3:18 pm
On the online application for this account I noticed they had a space for a promotional code.
Anyone happen to know one?
12:20 pm
December 12, 2009
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Yes it is, Mike. All banks' interest rates are annualized, calculated daily on the closing balance for the day and paid monthly.
Cheers,
Doug
7:43 pm
Doug said:
Yes it is, Mike. All banks' interest rates are annualized, calculated daily on the closing balance for the day and paid monthly.
Cheers,
Doug
Doug,
Is it 2.75% or 3.75% for the HSBC Direct Savings account? Does HSBC do RRSP savings accounts?
10:11 pm
December 12, 2009
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shuttergirl,
The Direct Savings Account's current posted interest rate is 2.75% plus a 1.00% bonus on Net New Money deposited for all an individual's accounts (under their same sole record base number) until March 16th, 2009. For brand new clients, this means any deposits you make consist of new money and thus you're entitled to all bonus interest. (Bonus interest is credited separately than regular interest.) As of November 23rd, HSBC took its existing clients' balances and any money you put in over and above your November 23rd balance is considered new money and qualifies for the bonus.
It is available as a regular Direct Savings Account (DSA), which is perfect for a day-to-day banking account sans chequing privileges as it is totally free and has access to the largest fee-free deposit/withdrawal ABM network in Canada as well as being a savings vehicle that pays one of the highest rates in Canada, or as a Direct Tax-Free Savings Account (Direct TFSA). As it is available by phone, Internet, point-of-sale and ABM only, it isn't currently available as part of an RRSP or RRIF; however, you could e-mail HSBC's marketing department and suggest that it should be. 🙂
Cheers,
Doug
11:19 pm
- deposits are free, but you are charged $5 for the second and subsequent withdrawals in each month
Does this mean the first with draw every month is free?
1:39 am
Yep, first withdrawal (transfer out) every month is free...
5:25 pm
The rate on the Smart Saver account was lowered to 2.5% from 2.75% today, and it was just a few days ago the BMO TFSA rate was lowered to 2.5% from 3%
10:06 pm
The problem with the BMO smart saver account is that it's fairly difficult to open. Although it's advertised as an online branchless account, you will still need to visit a branch to open it; that is even if you already have a bank account and do online banking with them.
12:57 am
I was able to open mine online...
though it took about 48 hours for them to activate it
6:39 pm
Is it true that you still have to go to the branch to open the Smartsaver, after you complete the online application? I know Palos Green said he or she didn't have to...wondering what other people's experiences were like?
PS Why do they care about employment info?? What are they going to do with that? It's a savings account, we're not borrowing money from them.
12:57 am
If you already have an existing bmo account and are registered for telephone/online banking, all you do is log in online and click on accounts and plans, then open new account. It takes about 24-48 hrs before you'll see it added onto your online banking summary.
All the employment/source of wealth stuff is part of their 'knowing your customer' which is part of their anti money laundering guidelines.
10:03 am
December 12, 2009
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You can specify "unemployed" or "homemaker" if you're not currently working. "Guest" is correct - banks are required to ask for your employment information as part of anti-money laundering and terrorism financing legislation & regulations.
Cheers,
Doug
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