The newest online bank: motusbank
motusbank is Canada’s newest online bank. motusbank launched with a comprehensive offering of products, including a no-fee chequing account with unlimited Interac e-Transfers; savings accounts available in non-registered (2.25% interest rate), TFSA (2.50%), and RRSP and RRIF (2.25%) versions; and GICs. Its regular savings account interest rate is competitive but lower than most of the other financial institutions on our comparison chart, while its TFSA rate is tied for first.
motusbank’s marketing so far has focused more on their credit products such as their mortgages (1- through 5-year fixed mortgage rates are all 3.09%) and personal loans.
So far, motusbank looks like worthy competition for other day-to-day online banks such as Alterna Bank, EQ Bank, and Motive Financial, as well as the bigger names such as Tangerine Bank and Simplii Financial. Forum members have reported that the motusbank account opening process is straightforward, although electronic funds transfers from other banks take several days more than the competition.
Share your questions and experiences on our motusbank forum!
A flat or dropping interest rate environment for savers
Over the past month, there have been a couple of small savings account interest rate drops: Meridian Credit Union decreased its regular savings account and TFSA interest rates from 1.50% to 1.40%, and Alterna Bank decreased its regular savings account interest rate from 2.35% to 2.30%.
As well, every financial institution on our GIC comparison chart decreased at least one of its GIC rates. Click on any of the dates in the “Updated” column to see GIC rate histories for each financial institution. Hubert Financial is tied for the lead or has the outright lead for every term on our list: 3.00% for 1 year, 3.10% for 2 years, 3.20% for 3 years, 3.30% for 4 years, and 3.40% for 5 years.
If you’re seeking better rates, consider looking into GIC brokers. For example, for amounts of at least $25,000, GIC Wealth Management has some attractive rates. See also our promotions page with offers such as:
- 3.00% for a 12-month term deposit, redeemable after 180 days at BC-based G&F Financial Group
- 3.00% until January 31, 2020 on new money deposited to a savings account at Ontario-based DUCA Credit union
- 3.00% interest for 3 months when you open your first RBC High Interest eSavings Account
- Targeted new deposit promos from Canadian Tire Financial, CIBC, Tangerine, Simplii Financial, RBC, and BMO
A forum member also discovered a now-expired 3.25% 15-month GIC with a unique rate guarantee: the rate goes up if the Bank of Canada rate goes up. This was from Pen Financial Credit Union, based in Ontario’s Niagara region.
- Fill out our 2019 Canadian personal income tax filing survey by the end of day on April 19 for a chance to win 1 of 2 $50 cash prizes
- Starting April 30, 2020, CDIC rules will expand to cover GICs longer than 5 years and foreign currency deposits
- Get $110 cash back for opening a Scotiabank Gold American Express credit card
- Get $35 cash back for opening a savings account or GIC with motusbank