Is it safe to open a savings account at an online bank?

Do your research and find out if the bank is insured by the Canada Deposit Insurance Corporation (CDIC). Deposits of up to $100,000 at a CDIC-insured bank are backed by the Canadian government, which means your savings are safe in the event that your bank fails.

What type of savings account is right for me?

If you need access to your money for emergencies, a high interest online savings account is your best option. However, if you can set your money aside for a fixed term, consider a Guaranteed Investment Certificate to get the best interest rate.

Who decides what interest rate I get?

Your bank or lender, neither of whom are legally obligated to follow Canada's prime interest rate. However, banks and lenders very often base their own rates on the policy interest rate set by the Bank of Canada.

What does the Bank of Canada have to do with bank interest rates?

The Bank of Canada sets the policy interest rate, which is the rate at which the Bank of Canada would like financial institutions to use for overnight loans to/from each other. The interest rates you get tend to be loosely connected to this — while your personal bank or lender sets their own interest rate, national interest rate averages tend to fluctuate in line with the prime rate.

Which Canadian bank has the highest interest rate?

Among the Big Six Canadian banks, savings interest rates of up to up to 4.75% are available from the Scotiabank MomentumPLUS Savings Account and up to with the CIBC eAdvantage Savings Account. However, these rates are only available for a limited introductory period. Among other providers, the Simplii High Interest Savings Account comes with a promotional rate of up to 4.5% .

Should I lock in my variable rate mortgage in Canada in 2025?

Locking in a fixed interest rate can protect you against any potential future rate hikes. Following multiple rate rises throughout 2022 and 2023, you may be rightly hesitant to lock in your rate just now. That said, with the recent cuts from the latest rate announcements from the the Bank of Canada, it may be worth reconsidering As rates fall, it may be a good idea to lock in a lower mortgage rate at some stage in 2025. Ultimately, it's up to you to decide which direction you think interest rates are headed and choose the right type of mortgage rate for your needs.

Who has the best fixed rate interest for loans in Canada?

There are several factors that influence the loan interest rate you will get, including your credit score, repayment history, income and employment, and any existing debts. It's easy to compare interest rates between lenders, but keep in mind that your personal financial situation will determine the rate you can qualify for.

Can I earn interest on the balance in my chequing account?

Most chequing accounts don't pay any interest. However, there are some hybrid accounts that offer the features of a chequing account but that also pay interest like a savings account. Examples include the EQ Bank Personal Account and the Wealthsimple Spend & Save Account.