EQ Bank Savings Plus Account
Interest rate of 1.5%
- Zero everyday banking fees
- Free transactions
- No minimum account balance
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|Interac e-Transfer Fee||unlimited|
|Transaction Fee||You’ll get an additional load of interest at regular intervals within your first year. This payout will occur at 90 days (0.30%), 180 days (0.40%), 270 days (0.50%) and 360 days (0.60%).|
|ATM Out of Network Fee||$1.50|
|Transaction Fee||deposits are free, and withdrawals are $1.00 each (first monthly withdrawal is free)|
|Transaction Fee||free and unlimited|
|Interac e-Transfer Fee||free|
|ATM Out of Network Fee||$1.50|
With so many savings accounts out there to choose from, we narrowed down the options to a list of the top accounts by considering key factors like the interest rate, how rewarding an account is in terms of growing savings and how easy it was to open. That meant digging into account details like type, annual percentage yield (APY), monthly fee, minimum deposit to open the account, minimum balance to earn interest and signup bonus.
No single savings account will be the best choice for everyone, so compare your options before picking your new account.
The primary feature of a savings account is to safely grow your money over time – an extra 1% yield on an account with a balance of $5,000 will pay out about $50 each year, which can really add up over time. And when you consider that inflation causes your money to lose up to 3% of its value each year, keeping your funds in the best savings account for your needs can help lessen the effects of inflation and protect you financially.
When choosing the best savings account for your financial situation, it’s important to figure out exactly how factors like your account’s interest rate can impact your savings goals. Compare different account options by using our savings account calculator below.
With savings accounts, you can expect interest rates anywhere from as low as 0.02% up to 2% depending on who you choose to bank with. Rates offered by Canada’s Big Banks, such as Scotiabank and BMO, range from around 0.05% and 1% while direct banking operations like EQ Bank and Tangerine offer up the best savings account interest rates to the tune 1.5%.
Savings account interest rates are often referred to as APY or APR. The APY or “Annual Percentage Yield” is the amount of money made each year on an investment due to compound interest (also called EAR or “Earned Annual Interest”). APR or “Annual Percentage Rate” is the interest rate charged during a certain time period multiplied by the number of time periods in a year.
Some of the best savings accounts offer a straight forward interest rate on all the money you deposit. Other accounts come with additional interest rate features, like:
Banks set and change interest rates for savings accounts based on the national prime interest rate. This rate is set mostly by the Bank of Canada as a general guide for banks to follow when they choose their interest rates for both loans and deposits. When the Bank of Canada updates the prime rate, the decision usually makes headlines and the news can help you predict whether your savings account rate might change.
There are various types of savings accounts you can sign up for in Canada, each with a different purpose depending on your life stage or whether you’re saving for the near future or for retirement.
Check out the 8 different types of savings accounts below. When you’re zeroing in on the best savings account for you, think about your main objectives. Do you need regular access to your accounts or do you want to tuck a large chunk of money away for the future?
Consider a standard savings account if you plan on regularly moving money between accounts, and if you prefer visiting a bricks-and-mortar bank in person. The standard savings account typically comes with a small amount of interest, and your funds aren’t locked in unlike other savings accounts, providing you with flexibility to access your cash.
Keep in mind, some banks may charge you fees for moving money in and out of this basic savings account, so look at the fine print before signing up.
If yielding a high interest rate is your top priority, these are the savings accounts for you. Some high-interest savings accounts are tied to digital-only banks, so you’ll have to be comfortable with online-only banking. To secure a high-interest rate, you may have to stick to a higher minimum deposit or tight restrictions on withdrawals so pay attention to the fees and requirements you’ll need to meet before opening one of these accounts.
A tax-free savings account allows you to invest your savings in securities and withdraw your earnings without having to pay any withholding fees or taxes on your returns. The Canada Revenue Agency (CRA) launched the program in 2009, allowing Canadians 18 and older to shelter $6,000 each year in investments kept in a TFSA. The TFSA contribution room accumulates each year. This means that if you don’t use up your annual allotment, the amount is carried over to subsequent years.
Canadians planning for retirement, whether it’s decades away or on the horizon, should look into opening a registered retirement savings plan. When you stash your savings away in an RRSP, your money is usually held in cash or placed in stocks, bonds and other securities. You can only contribute a certain amount of money to it each year (about 18% of your income), but if you don’t use your annual allocated amount, it can be rolled over to future years.
You’ll earn a “tax deferral” for every RRSP contribution you make, which allows you to save money at tax time. Make sure your RRSP savings can be socked away for the long haul – you can make withdrawals before you hit retirement age, but you’ll have to pay your regular income tax and a withdrawal tax of 10-30% on any amount you take out of your RRSP early. You can avoid paying this tax if you’re taking money out to pay for your education or your first home.
If your aim is to set aside savings for your little one’s education costs later on, a registered education savings plan is a great way to help you achieve this goal. An RESP is a government-registered plan that helps you save and invest for your child’s post-secondary education. You can make deposits into the account while collecting government grant money for every year you do so. You’ll also earn tax-free interest on your savings just like you would with a TFSA and RRSP.
The vast majority of Canada’s banks offer a special savings accounts for children. These child savings accounts are opened by their parents or grandparents and they offer a good interest rate to give kids’ savings a boost. Youth savings accounts also traditionally come with educational tools to help them with their savings goals and money management.
Canadians heading into their golden years can take advantage of seniors’ savings accounts, which are on offer by most Canadian banks and financial institutions. Seniors savings accounts come with a string of perks, including special interest rates and reduced fees.
If you have American funds you’d like to deposit while earning interest, a US dollar savings account is your best bet. Foreign currency accounts help Canadians who do business in the United States, own property there, or need access to US funds. Holding onto a US bank account is a great way to manage your Canadian and US finances in one spot. An example of this type of account is the BMO U.S. Dollar Premium Rate Savings Account.
Savings accounts are a great place to start growing your money, to set aside money for a rainy day or to help you achieve your financial goals. With so many options to choose from, here’s a look at what you need to consider when deciding on the best savings account for your needs:
Once you’ve narrowed down what you’re looking for in the best savings account for your needs, you can take the next step and apply. Check out the options in the table below.
When interest rates are low, where can you get the best return for your money? If the best savings accounts aren’t enough or don’t fit your financial goals, there are other ways of getting the most out of your money. Consider these other ways to save:
You can also use apps that help you save as you spend. These apps generally work by automatically setting money aside to save or invest, or providing a better picture of when and how you’re spending your money.
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