More rate increases and a 4.00% GIC
Last month, we saw the Bank of Canada raise its key interest rate by 0.25%, and savers are slowly starting to see the benefits.
Outlook Financial, Achieva Financial, and Implicity Financial have all increased their regular savings and TFSA interest rates from 1.85% to 2.00%. AcceleRate Financial’s main accounts sit at 2.05%. Alterna Bank’s regular savings account is now at 2.05%, while its TFSA interest rate is now at 2.10%. Hubert Financial made 2 separate increases in the past month, and its regular savings and TFSA interest rates now sit at 2.10%.
EQ Bank is still the leader on our comparison chart with a 2.30% rate on a regular savings account. Ideal Savings is tops for a TFSA at 2.25%.
On the GIC side, Oaken Financial is the current leader with a 5-year GIC at 3.25%, and its other GIC rates are rumoured to increase again tomorrow, with every term 18 months or longer offering a rate of at least 3.00%.
If you’re in BC, Coast Capital Savings blows all GIC rates out of the water with a current promotion for a 4.00% 33-month GIC on new money of at least $500 until March 20.
Manitoba credit unions: why such consistently higher rates?
Our comparison chart is full of Manitoba credit unions, and whenever interest rates start to rise, more people start to ask why the province’s financial institutions consistently offer higher rates. Is it simply because they are more efficient? Follow the discussion here.
Other credit unions available to out-of-province applicants
Why don’t we see more credit unions operating nationally? Manitoba, Saskatchewan, and Ontario technically allow credit unions to accept out-of-province members, but those financial institutions aren’t allowed to operate or solicit business outside of their respective provinces. In fact, when Hubert Financial first launched, they got in trouble for advertising outside of Manitoba.
To operate nationally, Ontario credit unions can either create a separate bank (such as Alterna Bank; also see Meridian Bank, rumoured to launch some time later this year) or adopt federal mandates for their existing financial institutions. There are reasons for them to not do the latter, including how provincial deposit insurance is higher than the 100K limit offered by the CDIC.
BC, Alberta, and Quebec don’t allow their credit unions to accept out-of-province members by default. However, Coast Capital Savings is making moves to become a federal credit union.
Hubert Financial referral promo: $25 for you, $25 for a friend or family member
For the month of February, Hubert Financial has a referral promotion offering $25 to open a new account, as well as $25 to the person who referred you. Looking for someone to refer you? Post a request in the forum thread.
More Tangerine promos
Didn’t get Tangerine’s net new deposits promo (2.50%) last month? You might have received one this month instead, so be sure to check your account! They’ve also essentially rolled over their new customer promotion, offering 2.50% for 6 months in a new savings account.
Speaking of promotions, the start of the year has seen quite a lot of them, so be sure to check our promotions page, especially if you’re currently taking part in Simplii Financial’s 3.00% net new deposits promo that is set to expire at the end of February.