What a difference a year makes for rates
Last January, we were talking about a 3.30% savings account at LBC Digital, and every financial institution on our savings account comparison chart had an interest rate of at least 2.00%, with the exception of Canadian Tire Bank. Today, Canadian Tire Bank leads our chart with a savings account interest rate of 1.80%, and most other rates are closer to 1.00%. Just last month, there were more rate decreases at LBC Digital and MAXA Financial, and Hubert Financial even decreased its rate twice in 7 days.
12 months ago, 5-year GIC rates were nearing 3.00%, and there was even a 1-year GIC promo at 3.00%. Today, we don’t even have a 5-year GIC at 2.00%. Although, you might not feel the impact of fluctuating rates as much if you’ve set up a GIC ladder.
But there is hope around rates, and not just for those who are in the market for a mortgage!
EQ Bank’s recently launched TFSA (and RRSP) offers the best rate around at 2.30%. They are also offering that rate for a TFSA or RRSP 3-month GIC. Even if you’re skeptical of how long the rate will last at 2.30%, EQ Bank doesn’t yet have any transfer-out fees.
Tangerine Bank continues to play the promo game, with January’s targeted new deposit promo offering 1.75% until May 31, 2021. Our promotions page features some other usual suspects such as Simplii Financial and CIBC, as well as a 1% transfer-in bonus from Meridian Credit Union for TFSA and RRSP funds.
Lots more personal finance news
- If you were a Simplii Financial client in May 2018 and were affected by a data breach, you might be entitled to receive some compensation
- Two-step authentication is coming to the Tangerine Bank login process
- StudioTax is no longer free, but there are other options if you want to get a jump start on this year’s income taxes
- What qualifies as excessive trading in a TFSA?
- Our cash back offers for the Scotiabank Momentum Visa Infinite Card, Scotiabank Gold American Express Card, and Scotiabank Passport Visa Infinite Card have been increased to $100
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