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TFSA promos are coming

With the end of the year approaching, expect TFSA promotions to show up such as this new one from motusbank: 2.25% for 122 days on your first TFSA savings account. You might want to have a plan for what you will do with the funds after the promo rate expires early in 2022. Check the non-promo TFSA rate: motusbank’s regular TFSA interest rate is currently 1.25%, which is quite competitive, ranking second on our comparison chart. And check whether there is a transfer out fee, in case you want to transfer TFSA funds mid-year (rather than executing the “December manoeuvre”): motusbank has a $50 fee for transferring money out of registered accounts.

We’ll be sure to track all TFSA promos on our promotions page.

Rate increases are also coming?

Last month, we noted that the couple of rare increases in savings account interest rates this year had since been reversed. However, 3 subsequent rate increases have occurred: for the Hubert Financial TFSA (from 1.00% to 1.10%), the Oaken Financial regular savings account (from 1.15% to 1.20%), and the motusbank TFSA (from 1.10% to 1.25%).

With inflation at a multi-decade high, and the Bank of Canada signalling that the key interest rate will rise some time between April and September 2022, we might see more upward movement on savings account interest rates.

More to compare with GICs

Per multiple reader requests, new to our GIC comparison chart is a table for GIC broker rates! Although there might be minimum deposit amounts and location-specific eligibility for some GIC broker rates, at the moment they handily beat all of the 1-year through 5-year GIC rates for the financial institutions we track.

Simplii Financial enters the USD account market

Simplii Financial has launched a USD account. It offers only a 0.10% interest rate, but it has a competitive exchange rate that could save you money if you’re transferring from Canadian dollars and not using a separate foreign exchange service (such as OFX).

Regarding the interest rate, you would still be better off with EQ Bank’s USD account (1.00%) or one of Tangerine Bank’s new customer (2.00%) or targeted existing customer (1.60%) promos.

When will rates bottom?

This year, almost every rate change on our savings account comparison chart has been a decrease. The only rate increases in 2021 occurred in June and July at Implicity Financial and Hubert Financial. Since then, both of those financial institutions have decreased their rates, with Hubert Financial most recently decreasing its regular savings account interest rate from 1.25% to 1.10%.

Last week, Motive Financial decreased its regular savings account and TFSA interest rate from 1.25% to 1.10%, and AcceleRate Financial did the same, from 1.20% to 1.15%.

Coming soon: Concentra Bank rebrands as Wyth Financial

Wyth Financial, the new brand name for Concentra Bank, is set to launch its new online banking portal on October 25. Will we finally see the general availability of its 1.35% savings account, which is currently only available to GIC holders? And how will it compare to Neo Financial’s savings account, which is also powered by Concentra Bank / Wyth Financial, and whose CDIC coverage limit is shared with other Wyth Financial accounts?

Zero-fee online brokerage commissions: who’s next?

If you blinked, you might have missed Desjardins becoming the third online brokerage to cut its commissions rate to zero, following National Bank and Wealthsimple’s lead. Will we see similar offerings from the big banks any time soon?

The latest promos

Our promotions page includes a new savings account promo from HSBC: 1.75% on new deposits in a savings account between September 13 and December 16. It also features a GIC promo that expires next week at Wealth One Bank of Canada: 2.88% for a 5-year GIC if you use promo code GIC5Y before October 20.

Did your spouse or someone else in your household get a Tangerine new deposit promo but you didn’t? You might be able to get a matching promo if you ask.

Cash back offers

• The National Bank World Elite, World, and Platinum Mastercards have 15,000 point sign-up bonuses, no annual fee for the first year, plus $60 cash back (or $65 via Amazon.ca gift card)
• Tangerine’s credit cards now earn 15% on purchases in the first two months, plus $100 cash back (or $105 via Amazon.ca gift card)
• The Scotiabank Ultimate Package has a $350 welcome bonus, plus $45 cash back (or $50 via Amazon.ca gift card)

The top GIC rate changes more frequently than you might think

Canadian Tire Bank currently tops our GIC comparison chart for the 5-year rate at 2.23%.

Did you know? Canadian Tire Bank has changed its 5-year GIC rate a total of 54 times over the past year; that’s on average more than once per week. No other financial institution comes close to that sort of frequency. In fact, the average financial institution on our chart changes its 5-year rate less than 3 times per year. Don’t be surprised if, by the time you’ve transferred your money over, Canadian Tire Bank has already changed its 5-year GIC rate (for better or for worse)!

Its 1- through 4-year GIC rates are far from competitive, though. Oaken Financial has the top 4-year rate at 2.00%, EQ Bank has the top 3-year and 2-year rates at 1.80% and 1.60%, and Peoples Trust and Achieva Financial share the top 1-year rate at 1.45%.

Do you use a GIC broker?

GIC brokers can often beat the best rates on our chart. The broker rates might come with additional stipulations, such as a higher minimum deposit. But, GIC rates are by nature guaranteed for the term, so it might be more worth it to rate chase with GICs than with savings accounts. Join the discussion if you are interested in having the High Interest Savings website track broker rates more officially!

Savings accounts rates aren’t a-changin’

There hasn’t been much change on our savings account comparison chart. Alterna Bank decreased its regular savings account and TFSA interest rate from 1.00% to 0.90%, making it the first rate on our chart to drop below 1.00%.

Last week, The Bank of Canada decided to keep its key interest rate unchanged, and doesn’t expect to increase it before the second half of 2022.

Promos and more news

• National Bank cuts its online trading commission fees to zero
• Concentra Bank is rebranding to Wyth Financial
• CIBC to take over Costco Mastercards from Capital One early next year
• Discussion thread: Why keep so much in a savings account?
• Our promotions page features savings and chequing account promos from DUCA Credit Union, Tangerine Bank, Scotiabank, Coast Capital, and more, including a 2.00% targeted existing customer promo and a 2.20% new customer promo at Simplii Financial
• Neo Financial is offering a $25 bonus on credit card sign-up
• Tangerine’s Money-Back Credit Card and World Mastercard: Earn an extra 10% back (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months

New to our comparison chart: Saven Financial

As requested by many of our site visitors, we have added Saven Financial to our high interest savings account comparison chart. It currently boasts a 1.55% interest rate, which tops our list for non-registered savings accounts (and would still be the top rate if a speculated drop to 1.35% turns out to be true). August 16 update: Today, the Saven Financial rate actually dropped to 1.35%.

The catch? It’s the first Ontario-only financial institution we’ve added to the chart. As a result, we’ve now added the ability to filter our comparison chart by province, so you can review only the accounts that are relevant to you.

Do you have an account with Saven Financial? Please share your experiences in our Saven Financial discussion forum.

Rate decreases, including our previous rate leader

Canadian Tire Bank had held the top interest rate on our savings account comparison chart for a whole year. However, on July 19, it decreased its regular savings account and TFSA interest rate from 1.55% to 1.25%. That dropped it into a 5-way tie for the regular savings account interest rate, behind Neo Financial at 1.30%. Wealth One Bank of Canada is still our top TFSA interest rate at 1.50%.

The past month has also seen interest rate decreases at Achieva Financial (from 1.20% to 1.10%), Peoples Trust (from 1.15% to 1.10%), and Implicity Financial (from 1.30% to 1.10%). Implicity Financial’s interest rate now matches the rate of proposed merger partner Outlook Financial.

Catch up on more news and discussions

• Suggestions on how to choose a lawyer or online service to make a will
• motusbank ends another savings account promo earlier than advertised
• Security incident at Wealth One Bank of Canada: some customers’ personal information was available in a compromised mailbox
• The quirks of the Steinbach Credit Union savings account: interest is paid annually on the minimum monthly balance
• Are you new to our website? Be sure to check out the discussion forums, our GIC comparison chart, and our promotions page.

Savings account interest rate increases!

There has been some moderately good news for savers recently, with a couple of savings account interest rate increases. Hubert Financial increased its regular savings account interest rate from 1.00% to 1.25% (although its TFSA/RRSP/RRIF savings accounts remain at 1.00%). Implicity Financial increased its regular savings account and TFSA interest rate from 1.10% to 1.20%.

The leaders on our comparison chart have remained unchanged since last month, although remember to look beyond the rate if needed and consider other account features. There are pros and cons with all accounts. For example:

• Canadian Tire Bank has the highest rate on our chart at 1.55%, but there have been lots of reports about how long it takes to open an account
• Neo Financial is next at 1.30%, but does not currently have an online banking interface or a TFSA
• EQ Bank is tied for third at 1.25%, but does not offer cheques
• Tangerine Bank has one of the highest new client offers with a 2.10% promo rate for 5 months, but after that, its regular savings account interest rate is a paltry 0.10%

GIC leaders beyond our comparison chart

The rate leaders on our GIC comparison chart are unchanged from last month:

• Oaken Financial has the highest 5-year (2.20%), 4-year (2.00%), and 3-year (1.70%) rates
• Achieva Financial and Wealth One Bank of Canada have the highest 2-year rate at 1.55%
• Achieva Financial has the highest 1-year GIC rate at 1.50%

Although these are not technically promotions, you can find even higher rates elsewhere, such as through the broker GIC Wealth Management Inc. (up to a 2.30% 5-year GIC) and through Ontario-only Tandia Credit Union (up to a 2.50% 5-year GIC).

Another summer of promos

If you are looking for a low-risk place to park cash for a short term, such as in advance of a down payment, or if you’re looking to try a new bank account, there are plenty of promos available.

• motusbank: 2.25% for the first 90 days in a new savings account or RRSP; 2.35% for the first 90 days in a new TFSA. Expires July 31, 2021.
• Tangerine Bank new customers: 2.10% savings account interest rate for the first 5 months if you also open a chequing account, plus $150 bonus for setting up payroll direct deposit with the promo code “EARNMORE”
• Tangerine Bank targeted promo for existing customers: 1.50% on new deposits in a savings account between June 9, 2021 and October 31, 2021
• Simplii Financial new customer promo: 1.50% in a savings account until October 31, 2021
• Simplii Financial targeted promo for existing customers: 1.50% on new deposits in a savings account until October 31, 2021
• Every one of the big 5 banks has a minimum $300 sign-up bonus promo for opening a chequing account. For example, Scotiabank’s promo is up to $300 cash for opening an Ultimate Package or Preferred Package chequing account
• Coast Capital chequing account: up to $350 sign up bonus for customers in BC (expires July 31, 2021)

We have a dedicated page to track promotions.

Credit card promos too

If you’re planning to make a lot of purchases this summer, you might also want to check out one of many credit card sign-up promotions, including:

• Tangerine Money-Back Credit Card or World Mastercard: An extra 10% back on your first $1,000 of purchases in the first 2 months
• … which is not unlike Scotiabank’s Momentum Visa Infinite Card promo: 10% back on the first $2,000 in the first 3 months. This card has an annual fee, but the fee is waived for the first year.
• National Bank’s mycredit Mastercard has no annual fee (first year or otherwise), and currently has a promo where you can earn 8% cash back on your first $1,500 of restaurant purchases and recurring pre-authorized payments in the first 3 months
• The Scotiabank Gold American Express Card has a promo of up to 50,000 bonus Scotia Rewards points in your first year, and no annual fee for the first year

Credit card changes

There has been a significant change to the MBNA Rewards World Elite Mastercard: you previously earned 2 points per dollar on all purchases; now, you will earn 5 points per dollar on groceries, restaurants, and recurring bills; and 1 point per dollar on all other purchases.

The American Express Cobalt credit card monthly fee is going up by $2.99 per month (about $36 per year) in exchange for some new features: mobile device insurance, 3x points on streaming service purchases, and the ability to transfer directly to certain airline frequent flyer programs, such as 1:1 to Aeroplan.