Savers Roundup April 2019: motusbank launches; GIC brokers; CDIC coverage expansion

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:

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.