Savers Roundup July 2023: Shorter terms and huge lump sums get you higher rates

The Bank of Canada just made another 25 basis points increase to its key interest rate, which now sits at 5.00%. This is the highest it’s been in over 20 years. We were just catching up from a similar increase in June…

The best rates for savers are in short-term GICs

Short-term GIC rates are the highest they’ve been in years. On our GIC comparison chart, both LBC Digital and Motive Financial are offering a 1-year GIC at 5.60%. Tangerine Bank has an 18-month GIC at 5.50%. This continues a trend where the longer terms have lower rates.

Bank of Canada interest rate decisions: savings accounts are still catching up

Suffice it to say, savings account interest rate increases have not kept pace with the Bank of Canada’s increases. As an example, Achieva Financial just increased its regular savings account interest rate from 3.50% to 3.60%, following an increase of 0.10% last month as well. EQ Bank’s current 2.50% rate has not changed since October 2022, and Alterna Bank’s current 2.25% rate is actually down from where it was last December!

That said, savings account interest rates are still going up in general, and we should expect to see more rate increases in the coming weeks. Motive Financial still leads our savings account comparison chart with a regular savings account and TFSA interest rate of 4.10%. You can get even better rates through a brokerage investment savings account.

Not a promo rate if you have $1 million

If you have over $1 million, you can get 5.25% at Simplii Financial as a non-promotional rate. But, if you have under that amount, you will get 1.00% or less.

Back the land of promotions for the rest of us, Tangerine’s latest targeted 5-month new deposit promo for existing customers is now at 5.50% between July 4 and November 30, 2023.

BMO is also getting in on the action. Its new account promo is now for up to $450 when you open a Performance Chequing Account, and a 5.00% promotional interest rate when you add the Savings Amplifier Account. (Conditions apply.)