Finding the Best Savings Accounts for Your Money in Canada

(Binary News Network) Finding the best savings account rates and arrangements might seem complex at first, especially for people who don’t understand what they should be looking for. In countries like Canada, the best savings account rates can often come with extra privileges and free withdrawal features, but many are also lacking in certain areas. If you are looking for the best savings accounts Canada has to offer, then it helps to know what might be available to you.

Interest Rates

Interest rates are a common concept, but many people still end up forgetting to look out for them when trying to decide which bank to go with. They should be your first and last point of comparison since they are often the biggest part of saving your money: allowing your funds to build up over time is part of the entire point, and a poor interest rate can make that growth incredibly slow.

Not everybody wants extremely high-interest rates, especially since they can sometimes come with their own downsides or at the expense of something else useful, but a faster build-up means that you will get more money sooner. Banks can change their interest rates quite often if they need to, but in many cases, they will try to keep it at a comfortable level so that their customers are gradually gaining more savings every year.

Security

The more secure your account is, the harder it becomes for your money to be lost or stolen. This doesn’t just cover fraud, but the act of actually insuring your money and keeping it safe from both direct and indirect losses. Different banks offer different types of insurance and protection, but the more you have, the easier it becomes to stay comfortable when your money is out of your hands and stored in an account that you can’t see.

Be sure to look into online security if you are using an online bank, too. Major online security breaches can become a serious problem when bank accounts are involved, and it can also stop you from being able to use or withdraw your account until the issue is fixed.

Online Banks 

Online banks can play a huge role in day to day life, and that means that they are often one of the first places people turn to when they need a good set of rates or a place to save their money efficiently. However, online banks are also very numerous, and it can sometimes be difficult to tell them apart when you first look at what they have on offer.

Online bank accounts are much more accessible overall but might not have a physical element to them – there isn’t a place where you can go and withdraw your money in-person other than using an ATM. This might also mean that you can’t cash checks or physical currency, at least not easily.

Offline Banks

Regular banks can still have online features, but they might not put as much focus on it. If you want the physical presence of a bank as well as an online account, this can be the way to go, but you will still need to travel to a branch of that bank to be able to deposit money or cheques physically. Setting the account up might also require an in-person meeting or visit.

Some banks might have different rates for accounts made online compared to accounts made in-person, although this is rare. You may have more options when making an in-person visit, though, so don’t hesitate to ask the bank for more details if their online account options appear limited or don’t have interest rates that you find appealing. The more you know about a bank and its accounts, the better informed you can be when choosing one.

Some Examples

Here are a few quick examples of some of the best savings account rates and offers available in Canada right now, as well as some of the flaws that they could have.

EQ Bank Savings Plus Account

EQ Bank has a special high-interest savings account known as the EQ Bank Savings Plus account, offering a regular 1.50% interest rate up to a balance of $200,000. It also comes with unlimited bill payments, transfers of money through electronic devices, Interac e-Transfers, and no minimum limit on your balance.

There are also no monthly fees, even while using the excellent mobile app, and your account is insured by the CDIC. This makes it a very accessible and safe option for people who want something simple and reliable.

Wealthsimple Cash Account

Wealthsimple Cash customers get personal savings and business savings, as well as a free online stock trading system account and robo-advisors to help them make smart investments. There are no monthly fees or minimum balance, and you get an extra $50 for free when you open the account with at least $500.

The interest rate of the account is a steady 0.75%, and it is protected by the Canadian Investor Protection Fund (or CIPF). The bank has promised to add extra features like a premium metal card to the plan, as well as free ATM withdrawals and e-Transfers.

Motive Financial Savvy Savings Account

This account is designed purely for savings, offering no monthly account fee and a limit of two free withdrawals per month. The 1.55% interest rate is higher than usual, allowing your money to stack up in the long-term. Keep in mind that extra withdrawals can cost $5.00 each, so you need to plan around your withdrawals carefully.

Tangerine Savings eSavings Account

Tangerine acts as the banking-focused arm of Scotiabank and offer a promotional interest rate on their eSavings accounts up to a balance of $1,000,000. After five months, the rate drops to 0.15%, making it great for short-term savings.

There are no extra payments needed on withdrawals or e-Transfers, and you don’t have to pay any monthly fee to keep the account. You have the option of opening a Tangerine RRIF, TFSA, or RRSP account, depending on your needs.

Choosing an Account

Finding the best savings account rates Canada can provide isn’t the end of your search: a savings account can have amazing rates but feel flawed everywhere else, so you shouldn’t focus on the rates alone unless you absolutely have to. An account with a high-interest rate might also have a limited number of withdrawals per month or require a certain minimum amount to open, and this can make the perfect account option completely unusable to you.

In most cases, you will have the option of moving from one bank to another as long as you carry out all the right paperwork, but this can take a lot of time and reset progress that you might have made with the original bank. If you have absolutely no other choice, changing banks or accounts can work, but it isn’t a decision that should be made lightly.

Whatever accounts you are interested in, do as much research as possible and make sure that you will be getting what you want from them. If you make a mistake, it can take a while to break away from that original account and move on to a better one, especially if you are obligated to stay with the original bank for a while as part of the agreement.