Canadian High Interest Savings Bank Accounts

Now that Ally rate as dropped to 1.55% is peoples choice know the only bank above 2.0%?

thanks for the update

You keep your CTFS 1.2% rate.

I'll keep mine with Ally which by the way is still 2%.

I sincerely hope that you look after your money better than you do checking out the highest rates available. Perhaps just reading the couple of threads above would have been enough to keep you informed.

Good luck with CTFS!

you're mixing up "emergency fund" and "retirement fund". a retirement fund is money you draw in retirement. an emergency fund is money set aside to pay for living expenses (mortgage, utilities, food, etc…) or other emergencies like roof repairs or vehicle work. many people don't have an emergency fund and instead rely on credit cards to fund emergency purchases.

stylintheo: the purpose of an emergency fund is just that; to handle emergencies. if someone loses their job for whatever reason its always nice to have cash in the bank to live off while searching for another job. employment insurance payments only cover about 55% of earnings and payments run out after awhile. tapping into a home equity line of credit (what you call a "reverse line of credit") for emergencies might be fine for some, but the bank needs to get its interest cut on the loan, and HELOCs can be withdrawn by the bank at any time for any reason (banks are uncanny at sensing when people are having financial troubles and turn off the credit taps at the worst possible time). and tapping into an rrsp to handle emergencies is not a good idea at all. for one thing, you lose that tax-free contribution room forever, and you also have to pay tax on the rrsp withdrawal at your current marginal tax rate which for many people is higher than it is at retirement when rrsp funds are meant to be used. i would only use rrsp funds as an absolute last resort if it meant the difference between a roof over my head and living on the street and there were no other options.

removing 10K from an rrsp eliminates about $30K of interest (or capital gains or whatever) at a reasonable 7% over 20 years. taking a 10K cash advance on a credit card and paying it off over a year at 19% interest would result in a little over 2K of interest paid. either way is bad, but if i was in this situation i'd use the credit card. of course a better option is having an emergency fund…

ya sorry it is 30,000 compounded yearly
but who is getting a 7% return on funds in this market?
unless its high risk stuff

Peoples Trust (Vancouver)
– 2.1%