Savers Roundup November 2020: Neo Financial’s high-interest account; reviewing international money transfer options; the value of a credit card point

Neo Financial’s 1.70% savings account is on the way?

Canadian fintech startup Neo Financial is advertising a 1.70%, CDIC-backed savings account. It appears to be a hybrid account where you can pay bills and send Interac e-Transfers, but not write cheques. Although applications appear to be open for Neo Financial’s credit card, the savings account is still awaiting general launch, but when it does, its interest rate would rank just behind Canadian Tire Bank on our comparison chart.

TFSA and RRSP accounts coming to EQ Bank

Speaking of hybrid accounts, EQ Bank is on the verge of expanding its ever-growing product offerings to include TFSA and RRSP accounts by the beginning of 2021.

A very small savings account interest rate increase

Continuing the 2020 trend, more steady savings account interest rate decreases have hit several of the financial institutions we track, including Wealth One Bank of Canada (from 1.60% to 1.50%), Hubert Financial (from 1.40% to 1.30%), Peoples Trust (from 1.50% to 1.35%), and Ideal Savings (from 1.31% to 1.21%). Bucking this trend, ever so slightly, was Implicity Financial, which increased its savings account interest rate last week from 1.30% to 1.35%.

The news isn’t any better with GICs, as there is only one 5-year GIC remaining on our chart with a 2.00% rate. Talka Credit Union (Ontario-only) is currently offering a 4-year 2.00% GIC and a 5-year 2.10% GIC.

Online options for sending money internationally

Are the Scotiabank and EQ Bank international money transfer options worth a look, given that they can both be done entirely online? One advertises no fees and the other claims to calculate the currency exchange using the mid-market rate. Those are two sides of the same coin — at the end of the day, no matter what they advertise you’re going to pay something to transfer money internationally. Our latest article breaks down the numbers of just how much money arrives in the destination account.

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