When a lot of people are looking at ways to invest their money they may not be looking close enough as to what their Banks have to offer by way of savings accounts. Not everyone has a lot of money to invest. Nor is everyone confident in making investments into anything that comes with a risk. At the same time, most feel that they are just not getting enough returns on the money they are keeping in their savings accounts. Normally the Banks are not all that generous with their interest rates.
High-Interest Savings Accounts
There are some savings accounts that do offer some good interest rates,
Tangerine Savings Accounts
One of the advantages to using the internet is being able to access all forms of banking services. Not just from the standard banks either. Some may have remembered the ING Direct baking that was available online. It was bought out by Scotia Bank.
There is an opportunity to open a Tangerine Savings Account. By doing so there may be an opportunity to receive a 2.10% interest rate for the first five months. The standard interest rate for this saving account is 0.10%. Which is still higher than what many of the traditional banks are offering. There is no minimum balance and transactions are free. For those who have a Tangerine checking account, they can enjoy no charge e-transfer fees.
EQ Bank
Another opportunity to use a digital bank that serves Canada. Customers can open a Savings Plus Account and are not required to have a minimum balance. The interest earned on this account is 1.5%. There are no standard everyday banking fees. The one drawback is there is no ATM access, nor is there any brick and mortar establishments. They are CDIC insured.
Wealthsimple Cash
This has replaced Wealthsimple Save. The regular interest rate being offered is 0.75% with a minimum balance of $1. Required. This virtual bank is not insured by CDIC but is CIPF insured.
Scotiabank Momentum Plus Savings Account
For those that feel more comfortable using a brand name bank, they may be interested in this particular savings account. The interest rates are based on a tied system. Meaning the more money in the account and the longer it is kept there the higher the interest rates. The regular interest rate is 0.05% and can work up to 0.60% if the funds are left in the account for 360 days.
How Safe Are These High-Interest Saving Accounts?
A lot of people are skeptical about putting their savings into virtual banks. There are some safety features build in for some of these. This is through the CDIC insurance which reputable banks have in place which ensures the deposits of their clients. However, every caution should be taken when using a virtual online bank, or a non-traditional bank.
Additional Savings
There are other ways to save money aside from savings accounts and investments. Money can be saved on your tax returns when they are done right. Many people miss out on tax credits simply because they are not aware of them, or don’t know how to claim them. If you want to be sure that your taxes are prepared and filed properly, as a qualified Toronto accountant I would be happy to assist you with this.
