Finding a high-interest savings account can make an impactful statement about your finances. With so many financial institutions and accounts to select from in Ontario, finding one to maximize savings can be challenging.
In this article, you’ll explore five high-interest savings accounts in Ontario in 2023. These accounts offer competitive interest rates to meet any savings need, whether saving for emergencies, life goals, or simply growing wealth!
The following are the savings accounts that offer high-interest rates:
1. Simplii Financial High-Interest Savings Account
Interest rate: 5.25%
The details include:
a) The standard interest rate of 0.40% with no monthly fee.
b) Access account using online banking and mobile app.
c) Set up automatic deposits.
d) HISA holders can open a no-fee chequing account to withdraw money at any CIBC ATM across Canada without incurring transaction fees or services rendered.
e) Does not require a minimum balance.
f) Immediate access through Interac e-Transfer, transfers to linked accounts, and more.
g) Eligible for CDIC deposit insurance.
2. Scotiabank MomentumPLUS Savings Account
Interest rate: up to 5.25%
The details include:
a) Save for multiple goals using one account while taking advantage of free transfers between Scotiabank accounts via self-service.
b) You don’t have to pay account fees or maintain a minimum balance.
c) Choose your timeline and track as you earn!
d) You are eligible for CDIC Insurance.
3. RBC High-Interest eSavings Account
Interest rate: 5.10%
The details include:
a) Earn high interest on every dollar with free electronic self-service transfers to any RBC personal deposit account in your name, including ATM and unassisted telephone funds.
b) You can access RBC mobile & telephone banking services for free.
c) No minimum deposits are required.
d) You can set up regular and automatic savings plans by pre-authorizing transfers from your bank account into savings.
e) Utilize digital services to track everything related to savings or investments at one location.
f) Canada Deposit Insurance Corporation (CDIC) provides deposit insurance against losses suffered should an eligible account fail.
4. Motive Savvy Savings Account
Interest rate: 4.10%
The details include:
a) Interest on daily closing balances at the applicable rate tier will be calculated and paid out monthly on the last day.
b) Unlimited transfers between accounts.
c) Free deposits can also be accepted without penalty.
d) Withdrawals may be made directly into either Motive Savings or Motive Chequing accounts, a no-fee account earning interest.
e) Funds can be managed via phone banking, online banking, and mobile apps.
f) Two monthly transactions are free, and service fees can be seen online.
g) Qualified for CDIC deposit insurance protection!
h) Motive Financial products are currently not available to Quebec residents.
5. CIBC eAdvantage Savings Account
Interest rate: up to 5.60%
The details include:
a) Regular interest rate ranges between 0.65% to 1.90% on balances up to $200,000 with up to 5.60% earned through Smart Interest savings of at least $200 every month (balance limit may apply).
b) Opening your account (with up to $1,000,000 of balance limit) qualifies you for an incentive bonus interest rate of 3.40% for the first four months.
c) You can opt for AutoSave automatic transfers to grow wealth without thinking too hard!
d) Free online transfers between your accounts.
e) No monthly or transaction fees.
f) A $5 fee applies for debit purchases, CIBC ATM withdrawals, Interac e-Transfer transactions, cheques, pre-authorized payments, and bill payment services.
g) Use CIBC Online Banking and mobile banking app for all your banking requirements anywhere and anytime.
h) Enjoy access to over 3,900 ATMs throughout Canada.
i) You can deposit personal and business cheques using a mobile device.
j) CIBC Smart Balance Alert(tm) provides early warning of your account running low on funds. Thus, you have time to transfer money to avoid non-sufficient funds fees and decline of transactions.
k) Eligible for CDIC deposit insurance.
How to Pick the Best HISA Account?
The conditions and terms set forth by a bank change drastically for high-interest savings accounts. Therefore, it is vital to consider the following factors before zeroing onto one:
1. Minimum Deposit
When opening certain high-interest savings accounts, there may be a minimum deposit requirement to be fulfilled. Some require this before any interest begins accruing on them, while others may allow deposits over time with no minimum required upfront.
These deposits may range anywhere from $25 to much larger amounts. Always read and understand all terms carefully or ask a customer service representative what deposit will be expected upfront.
2. Reputation and Security
When selecting a HISA, first select an established bank or credit union with excellent reviews which offer comprehensive insurance protection. It can be something other than your usual financial provider. Ensure they meet these criteria for safe investments.
3. Financial Goals
Before opening a HISA account, consider why it will serve your needs – is this for immediate savings goals, summer travel plans, or future purchases. Ensure your HISA offers flexible access levels tailored specifically to you.
4. Interest Rate
Make sure the account offers an attractive interest rate. Take care to compare teaser or promotional rates versus regular rates. Some Canadian banks provide higher promotional rates when you initially open one (five to six months). However, once the promotion period ends, the rates drop substantially. An account with high promotional rates may only sometimes be optimal; however, in cases of significant initial deposits or short-term saving strategies, it might still help maximize earnings.
5. Service Fees
Be wary of service fees associated with holding HISA accounts. Saving money may be costly, but some aspects are free. Retaining a high-interest savings account won’t cost a monthly fee. However, certain withdrawals and transfers might incur charges. Some accounts offer free transactions every month, while others waive bank fees if you maintain a minimum monthly balance in the account.
Conclusion
Ontario in 2023 offers an impressive variety of high-interest savings accounts tailored to different preferences and needs. Take time to assess your financial goals and the features that matter most before selecting from one of Ontario’s five best high-interest savings accounts. They could all make significant strides toward safeguarding your future!