10 high interest savings accounts beating a 5-year investment now

by | March 9, 2020

Designed for earning high interest on deposits, high interests savings accounts serve a strategic purpose in wealth creation. Savings accounts’ primary goal borders around deferring your spending and earmarking the funds for specific purposes.

You can be earmarking them for emergencies which always seem to come unexpectedly. Having savings also serves as a cushion and buffer in case of job loss as it is always traumatic. They also help in financing big purchases such as a new car or house, financing your vacations. 

Without savings, one can argue that the concept of a good life wouldn’t exist. Many immigrants come to Canada chasing after the Canadian Dream. Well, what they do not know is that there is no silver bullet to living a good life in Canada.

The best route to the Canadian Dream is through a savings account. Not just a savings account, but a high-interest rate saving account.

Each year, smart Canadians plan how to make lots of money through investments and jobs.

Having done that, they find extremely smart means to keep and grow the money even further. If you are not already doing that, you ought to start doing so ASAP.

There is a wide range of savings accounts you can choose from, some are far better than a 5-year investment. In this detailed guide, we will walk you through some of the best as of March 2020.

Summary of High Interest Savings Accounts in 2020

  • EQ Bank Savings Plus offering 2.45%
  • Wealthsimple Smart Savings offering 2.4%
  • Tangerine 2.75% (Offer stands until 2020)
  • RBC Royal eSavings Account 2.4%
  • Oaken Savings Account 2.3%
  • Motusbank 2.10%
  • Alterna eSavings Account 2.2%
  • Motive Financial  1.05% – 2.25%
  • LBC Digital Savings Account 1.25%

The EQ Bank Savings Plus Account: A top-class High-Interest Rate Savings account

EQ Bank’s savings account best known as the Savings Plus Account has many eyes watching its offerings. The key selling point of the Savings Plus Account is its everyday high-interest rate. It goes with unlimited free transfers and withdrawals.

Another main benefit of the Savings Plus Account is that it comes with five free Interact e-Transfers per month.

There’s no monthly fee. As a member of CDIC the money you deposit with EQ Bank falls under the protection of CDIC insurance.

EQ Bank only operates online. There are no client cards, ATMs or walk-in branches as we would expect from traditional banks.

This may sound crazy, but it’s actually the uniqueness of the brand. It leads to reduced costs by cutting on things like rent and staff members. No wonder they offer exceptionally high-interest rates while remaining competitive within the industry.

It has no monthly fees, hidden charges, initial deposit requirements, or account minimums. If you change your mind down the road, there are no closing fees either!

2.45% interest rate is a good deal! Actually one of the highest interest rates in Canada. EQ Bank Savings Plus Account is a great place to save your emergency fund. And savings for your next big purchase and money set aside for bills and expenses.

Who can open the  EQ Bank Savings Plus Account?

Any Canadian resident over the age of majority living outside of Quebec can open an EQ Bank Savings Plus Account.

The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island and Saskatchewan. In the other provinces and territories, the age of majority is 19.

You’re considered a Canadian resident if you’re currently living in the country. If you have a Canadian residential mailing address you’re good to go. Canadian citizenship is not required!

Visit their website to open an account

Wealthsimple Smart Savings

I consider this a smarter savings account with higher interest than most of the big banks in Canada. No introductory rates, limited-time offers or expiries. The perfect place to keep and grow your money for emergency expenses, a down payment, or your next vacation.

Wealthsimple Smart Savings account is deposited with a Canada Deposit Insurance Corporation (CDIC) member institution. CDIC insures up to $100,000 of eligible deposits per client per member institution within each insured category. That must give you a bit of relief in terms of security concerns.

Wealthsimple Smart Savings account offers a 2.4% interest rate! Wealthsimple Trade primarily makes money from the 1.5% currency conversion fee charged on Canadian to US dollar conversions (and vice versa) that are required to trade US-listed securities. Since the savings account is not its primary way of making money, thus they give high-interest rates which are appealing and competitive.

How to open Wealthsimple’s high-interest savings account

  • Set up your account here
  • Connect your bank account and make a deposit
  • Done

Checkout their website

Tangerine

This is the most trending now, lots of people are signing up with Tangerine as of the beginning of 2020.

Obviously, they are getting more clients because of their current trending offer; when you become a new Tangerine Client by April 30, 2020 and open your first Savings Account, you could earn 2.75%* interest for 5 months* up to a maximum of $1,000,000.

This includes Tangerine Savings, TFSA, and RSP Savings Accounts. This special rate also applies to RIF and US$ Savings Accounts.

Plus, you’ll also earn this special interest rate on any deposits made into any subsequent Savings Accounts up to the maximum per Account Type.

For these Accounts, the rate will only apply for 5 months from the day you opened your first Savings Account with them.

How do I open an account with tangerine?

  1. Go into your chequing account (or whatever account you’d like to make a joint account)
  2. Click on Account info.
  3. You’ll see that the ‘registration type’ is currently set to single.
  4. Click on ‘change’
  5. And then follow the instructions to make it a joint account.

Royal Bank of Canada High Interest eSavings Account

The largest bank in Canada, RBC has operations in 38 countries offering interest rate up to 2.4%. RBC offers a number of savings accounts with different rates depending on your preferences. It has a number of walk-in branches from numerous locations for your convenience.

RBC’s Royal Bank High Interest eSavings Account is an online savings account that offers a competitive annual interest rate. Some main benefits of the Royal Bank High Interest eSavings account are; unlimited online transfers to other RBC accounts, one free withdrawal per month, and has no monthly fee.

How to open the Account

You can apply for the RBC savings account entirely online by following these easy steps:

  • Sign into Online Banking.
  • On the Accounts Summary page, find the “Apply Now” box at the top right-hand side
  • Click on the “Open a Banking Account” link.
  • Follow the instructions and complete your account application.

Checkout their website

Oaken Financial Oaken Savings Account

Oaken Financial is a trademark of Home Bank. All deposits made to Oaken are held with either Home Bank or Home Trust Company. Both of which are separate members of Canada Deposit Insurance Corporation (CDIC). 

With an Oaken High Interest Savings Account, you will get to enjoy zero fees. And there are no minimum balance requirements to be eligible for the savings account. All Oaken Savings Accounts are eligible for CDIC coverage, up to all applicable limits. So you know your money is always safe, on top of your 2.3% interest rate!

How to open this high interest savings account

There are four options available to open the Oaken Savings Account. One can choose to open the account online, in person, by phone or by Email. To go the online route, you will need the following information or documents to get started

For new customers:

  • Personal information
  • Social Insurance Number
  • Email address

For existing Oaken customers:

  • Your client number or Savings Account number, which is located on your confirmation document

Once you submit your information, you will receive an email confirmation. It will be having your investment details and any instructions to finalize your request.

Checkout their website

Motusbank Savings Account

Motusbank is a full-service digital bank owned by Meridian Credit Union. It has been trading for more than 75 years now. If long trade record is anything to go by, then Motusbank is a great choice.

Meridian Credit Union is the largest credit union in Ontario and the third-largest in Canada. You can, therefore, rest assured your savings are with a reputable organisation with unquestionable going-concern.

Motusbank has a high interest savings account (2.10%), which has zero monthly account fees and no minimum balance required. Enjoying unlimited debit purchases and withdrawals. Furthermore, the bank also has an automatic savings option, this function will be of help in archiving your savings goal. 

As a digital bank, opening an account is also simplified by following a few simple steps after taping the sign up button in their bank platform online.

Alterna Bank High Interest Savings Account

Alterna Bank is as safe as other Canadian banks, it is in one and the same league with institutions like Oaken Financial.  Funds deposited with the bank are protected by the Canada Deposit Insurance Corporation (CDIC) subject to maximum coverage limitations. This includes deposits in eSavings, investment savings, and term deposits.

Alterna Bank has a competitive interest rate of 2.20% on your savings, slight lower than the Oaken Financial Oaken Savings Account, yet also very competitive. 

It takes about 5 minutes to create your own account online, just click “create account” in their website and follow the instructions thereafter. With these online sign ups, everyone is able to open their own account using the instructions and steps in the site, for as long as you can sign up a Facebook account, opening a bank account online is no longer an issue for you. 

Motive Financial

Formerly known as Canadian Direct Financial (CDF) now Motive Financial is a subsidiary of Canadian Western Bank. Motive Financial also offers its products and services online, without traditional branch locations. By operating solely through online and mobile banking, Motive Financial can offer savings accounts with premium rates and zero service charges.

It offers four savings accounts that offer varying interest rates. Each account is insured by the CDIC. Depending on your account balance, you can earn anywhere from 1.05% to 2.25%.

You can open the account by following easy steps online, with absolutely no service fees.

LBC Digital High Interest Savings Account

Laurentian Bank has been available only in Quebec, but fortunately the launch of a new digital offering at LBCDigital.ca has made it easy for the bank top target the all country,. The rate of 3.30% in their high interest savings account with no minimum balance and no monthly fees. This rate applies to balances of $500,000 or less, until March 1, 2020, when it will drop to 2.80%; above that amount, the interest rate is 1.25%, which won’t change as of March 1. With the LBC Digital High Interest Savings Account, you can access funds whenever you like, and frequently used services including electronic fund transfers, pre-authorized deposits, and transfers between LBC Digital accounts are included. 

Checkout their website

Wealth One Bank Of Canada High Interest Savings Account

With a primary focus on Chinese-Canadians Wealth One Bank of Canada (WOBC) is a Canadian Schedule. It was founded in 2016. It provides banking services online and through retail offices in Toronto and Markham, Ontario, and in Vancouver, British Columbia.

The WealthONE High Interest Savings Account has an effective rate of 2.30%. The account can be opened online or in any of their retail branches.

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