High Interest Savings Accounts

[mulock]

http://money.canoe.ca/rates/en/savings_2.html

For those of us who chase the high interest savings accounts, Peoples Trust continues to have the best rate in Canada - currently 2.1%. When I first joined with them almost 1.5 years ago, the rate was 4%. Keep in mind, it is primarily for SAVING...so don't look for internet banking, ATMs, etc.

If you Google "Peoples Trust" you will find a link to another forum that discusses this bank in detail.

[win-star]

is this forum red and it represent a Canadian and has a maple leaf in it???

[travelgeek]

there's also ally bank at 2%.

[elliott_gyal]

For high interest savings accounts, do you have to have a minimum initial deposit? also, do you have to keep the money in for at least a year? so confusing.

[ashedfc]

We are probably seeing the lowest interest rate in history.
Bank of Canada rate at 0.25%,
Major Banks Prime rate at 2.25%,
Mortgage rates range 1.75% to 3.25% & more, depending on credit history & income.
GIC Rates lowest in history.
Bonds have rallied (Bank of Canada last week announced - Interest rate increase may be coming earlier than expected. As interest rates go up - Bond's will be less attractive. Money will move away from Bonds into higher inflationary areas which benefits from higher interest rates).
Excess liquidity is keeping the markets up.(due to money printing/ quantitative easing by central banks world-wide).
Depending upon a person financial situation - one should take calculated measures towards growth. Is 2% growth enough & since the gains are tax free in a TFSA account, why not participate in a more growth kind investment.
Almost all Canadian equity funds performed more than 25% last year. Some were even 198% like the Mavrix Explorer, It has a initial minimum of $500 & subsequent only $25.

If 2% is what you are looking for then there are several 2% account. But the recent inflation numbers were more than 2% (It means, your money is growing lesser than its purchasing power).

[Woofy]

For high interest savings accounts, do you have to have a minimum initial deposit? also, do you have to keep the money in for at least a year? so confusing.

Hey, Elliott-gyal.

Don't be confused.

The terms and conditions of any savings account are dependent on each individual financial institution. Different financial institutions have different rules.

The ones I know of so far which are fee-free, and fuss-free, are ING direct, PC Financial, and some of the credit unions.

I do not know much about credit unions, so I cannot comment.

But you can check out both ING and PC Financial to find out more about what they are offering. ING is a little more restrictive, as you are required to link your ING account to an existing checking account.

PC Financial might be a better choice, if you are close to a Loblaws and you can also access your PC savings account from any CIBC machine.

The websites for these 2 are:

www.ingdirect.ca

www.pcfinancial.ca

I believe the basic foundation of a person's financial life is a savings account, and a checking account...

All the rest of the stuff that ashedfc mentions in the previous post are add-ons to a person's financial portfolio, once the person has a strong basic financial foundation.

Hope this helps.

[kasha100]

ing is always good for interest rates.

[ashedfc]

ing is always good for interest rates.

Explore other options, before making a decision at 2% (We are seeing an unprecedented amount of Money supply in history, All central banks worldwide are increasing money supply) interest rates are historic lows. Look at other safer options, like Real Return Bonds, Laddered GIC, or even
Look at Yellow pages income trust - they are 12%.
Or even buy a Government of Greece Bond (issued yesterday) at 6%
Or if you are looking for a balanced approach - Sentry Select Growth & Income Fund - 8%.

[brunt]

Perhaps another idea is to plunk it on your mortgage?

Save 5% or so a year - untaxed. You would have to find an interest rate in the 7.5% range so that after tax you would have about 5% to match that.