Twice in two weeks, Ideal Savings increased its TFSA interest rate, settling on a chart-topping 3.60%, although its regular savings account interest rate is stuck in the year 2020, refusing to budge at 1.01%.
Many financial institutions have made some modest savings account interest rate increases, albeit less than the Bank of Canada’s 0.25% key interest rate hike in January. Five of the financial institutions we track now offer a 3.40% savings account, bested only by Outlook Financial at 3.50% and Ontario-only Saven Financial at 3.75%.
The Bank of Canada said it’s going to pause and assess whether further rate hikes are warranted. Canada added 10 times more jobs in January than economists expected. Whether we have a robust economy, a looming recession, disinflation, or all of the above, we’re back to “high interest savings” in the absolute sense.
Brokerage investment savings accounts continue their surprising ascension, with most rates above 4.00%.
And savings account promotions are still hot, with some recent offers including:
- Tangerine is offering a targeted 5-month new deposit promo for existing customers: 5.00% between February 2, 2023 and June 30, 2023 or 5.00% for new customers
- Simplii Financial new customer promo: 5.25% in a savings account until April 30, 2023
- DUCA Credit Union (Ontario only): 4.75% on new deposits to an Earn More Park Account until April 30, 2023
The highest GIC rate is 5.40% for a 2-year GIC
GIC rate inversion is the current trend, where shorter-term rates generally beat longer-term rates. The highest nationally available rate is actually Peoples Trust’s 5.40% 2-year GIC, while Wealth One Bank of Canada has a 5.28% 1-year GIC. At the moment, the top 5-year GIC rates hover around 5.00%, even at a GIC broker.
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