Canadian Tire Bank is still on top
We might end the year with Canadian Tire Bank still atop our savings account comparison chart with an interest rate of 1.80% — a rate that it has maintained since April 2020. It has led our chart since August 21, 2020 amidst consistent interest rate drops at all other financial institutions. Over just the past month, there have been decreases at Peoples Trust (from 1.35% to 1.30%), Outlook Financial (from 1.30% to 1.20%), AcceleRate Financial (from 1.30% to 1.20%), Implicity Financial (from 1.35% to 1.20%), and Ideal Savings (from 1.21% to 1.01%).
Canadian Tire Bank has, however, given up its lead for a TFSA to EQ Bank…
Registered accounts have arrived at EQ Bank
Just in time for the end of the year, EQ Bank has launched TFSA and RRSP savings accounts with a 2.30% interest rate. Both the TFSA and RRSP flavours currently have a 3-month GIC offer at 2.50%, which is higher than EQ Bank’s own 10-year GIC rate and all of the GIC rates on our comparison chart.
EQ’s splashy TFSA and RRSP rates are likely teaser / promo rates. In case you are planning your next move after a potential rate drop, for now their registered accounts don’t appear to have any transfer fees.
The TFSA December manoeuvre
The upcoming new year also comes with new TFSA contribution room for Canadian adults, and the 2021 limit will once again be $6,000. As always, if you’re looking to transfer existing funds, consider what we like to call the TFSA December manoeuvre, which involves withdrawing TFSA funds at the end of a calendar year to open up contribution room on January 1. That way you avoid the administrative hassle and potential fees of a direct TFSA transfer between financial institutions.
Personal finance is like a box of chocolates
- Some Oaken Financial clients get a free box of chocolates every year
- Remember to review our Promotions page regularly, which currently lists net new deposit promos at CIBC, Tangerine Bank, and Simplii Financial
- Check out our interview from last month on Bruce Sellery’s Moolala Podcast
- Tax planning in a questionable future tax environment