Going with Tangerine & Alterna in order to save up for a mortgage? | General comparisons | Discussion forum

EQ does have 2% but they don't offer TFSA. So you're better off at Alterna until you hit TFSA limit. Yes, Alterna has the TFSA.

You might also need an everyday savings account but hardly worth an extra account at EQ for so little difference. on what would be a small amount of money.

I'm guessing you're not planning on buying a house within the next year as you still have a long way to go. So, you might consider one year GICs for some of your money, which pays a bit more. I like the Hubert one at 2.05, but there are others. Check Oaken and Peoples for their current rates. Most of these have very low minimums, so, every time you get a bit of money, you can get another GIC at prevailing rates, as long as you're at least a year away from buying.

Tangerine often has bonuses for people opening new accounts. I'd wait until the new year and see what they offer. Also, as toto said, you might get a promo higher interest offer. There are various short term promos from time to time which are worth pursuing if you want to squeeze all you can out of your money.

PC Financial also often has special offers for new accounts and so on.

Tangerine for checking is fine, and they have the mobile app. Good customer service.

The name of Alterna is confusing, as you have noted. You want Alternabank.ca . You don't want Alterna Credit Union. The credit union owns the bank. The Credit Union per se doesn't do online and doesn't have the high rates.

I don't think you'll ever get a long term promo offer from Tangerine! They are owned by Scotia and are behaving more and more like them. But it's worth watching for promo rates, which can be better than others.

Keep your eyes on this forum as things do change from time to time.

I think you're first scenario is good.

Good luck!

I agree with Norman.

The transfer fee for TFSAs may not matter to you if you just plan to cash it all in and put it into your house. While they charge for transferring your TFSA to another financial institution, most don't charge (or charge very little) simply to withdraw the money.

A few charge no transfer fee, e.g. Hubert, Peoples. However, that might change at some later time.

You sound confused about GICs. A GIC is a Guaranteed Investment Certificate. Most of the institutions don't offer an actual printed certificate any more, but it's the same thing. It's as safe as a bank account and is guaranteed by CDIC or the credit union insurance agencies in the same way that a regular account would be. The difference between GIC and bank account is that the GIC pays a different rate of interest (not necessarily higher) and the rate is guaranteed for a specific length of time. In addition, most GICs cannot be cashed during the period in question. However, Hubert does allow you to cash their one year GICs with no penalty, which is one of the reasons I like them. The trick is to recognize that the rate on this particular GIC is graduated, so that the rate you get in the last 3 months is significantly higher than what you get in the first 3 months. In addition, if you should need to cash it before the year is out, you should aim for the date that the quarterly interest is deposited because no interest is given for partial quarters. A GIC can be held inside or outside of a TFSA or RSP. If you hold for the whole year, Hubert's rate is 2.05% right now. But if you think there is a serious chance of buying within a year, then this is not your best alternative.

The problem with having TFSAs in more than one institution is that you may be liable for more than one transfer fee when you want to move them.