Canrocks' Reviews - No-Fee Reward Credit Cards - High Interest Savings Accounts

Note:

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High Interest Savings Accounts on RFD

High Interest Savings Accounts:
Better than GICs!

What is a High Interest Savings Account?

A high interest savings account can take many different forms, but there's one characteristic that they all share: really high interest. They aren't a replacement for your regular everyday bank account (well, most of them aren't), but they're supposed to supplement them, offering a safe, accesible place to keep your money.

Why use a High Interest Savings Account?

There are many reasons:

High Interest: The obvious reason. These accounts earn a lot more interest than usual bank account. A lot. And while the rates you see here seem low, it's because the God of Interest Rates has decreed that they shall be low. Interest rates change like the tide though; for example in late 2000, ING's interest was 4.85.
Accessibility: Whereas with GICs, your money is locked away for a set time (from 90 days to 5 years), with High Interest Savings Accounts, you can access your money whenever you want. Also, short-term GICs (under 3 years) tend to have worse interest than the best accounts on this chart.
Investing Small Sums: Buying stock or Mutual Funds are only profitable when you're investing a lot of money for a long time. This is mainly because of MUCH higher fees (29$ to buy stock, 29$ to sell stock).
Safety: All of these banks are insured, meaning that this money is perfectly safe. The interest rate may go down (although it's sort of at rock bottom right now) but you will never lose any money.

When is it a bad idea to use High Interest Savings Accounts?

Lots of Money: If you have lots of money (2000+), you should probably try your hand at stock trading or mutual funds. The high fees don't matter as much with higher sums, and you never know how much you're going to make, but beware, you can pretty much lose everything too.

What do I need to open an account?

Usually no more than a personalized cheque and a valid Canadian Social Insurance Number. If you're about to order cheques (starting at 15$) just so you can get one of these accounts, check the ones that don't need cheques, namely, Scotiabank, PC Financial, and BMO. On a side note, PC Financial's chequing account includes unlimited free cheques so that may be another route for you. Some banks (Citizens) really dig deep and get into things like your credit history, but that's usually because they offer extras like Overdraft protection.

Which one is right for me?

Well that's up to you now, isn't it? Put in the amount of money you wish to invest in the box below, then take a look at the list of banks and choose the one to your liking. Don't forget to factor in service charges. If you're spending 10$ a month in fees, and your making 2$ in interest, you should choose a different bank.

Enter the sum you want to invest :

Bank & Name	Signup Bonuses	Ways to deposit	Ways to withdraw	Info & Conclusion	Interest and your Earnings
Achieva Financial Achieva Savings	One Free Chequebook	Cheque by mail - Free Acculink ATMs - Free Direct Deposit (payroll) - Free	Cheque - 1.00$ Acculink ATMs - 0.60$ Interac ATMs - 1.00$ + fees Interac Direct Payment - .60$ Bill Payment - .50$	Required to Sign Up: Pre-Printed personal Cheque, SIN Number, mailed to them. Transfer Time : Not sure. Do you know? E-mail me and I'll credit you as the source. canrocks/a /t/ yahoo.ca Conclusions : This is a great interest rate that rivals many GICs. The free chequebook is a nice touch, but 1.00$ to use each of those cheques is a little outrageous. The Acculink ATM network that they're a part of is surprisingly extensive, including most Credit Unions in Canada. It's also surprising to see on the website that there's no way to transfer money out of your account for free. Not even online. The one free cheque only goes so far. This account is a great choice for people who have a lot of money to put away (3000$), and leave put. The fees are restrictive.	Enter the amount you wish to invest to calculate the interest.
Outlook Financial High Interest Savings Account	One Free Chequebook	Direct Deposit (payroll) - Free Manitoba CU ATMs - Free Mailing a cheque - Free Automated Transfer - Free	There is one free debit per month, the rest are 1.00$ each. This includes: Cheques Interac Direct Payment Manitoba CU ATMs pre-authorized debits bill payment Other fees ON TOP of the 1.00$: Interac ATM - 1.25$ Cirrus or Plus ATM (USA) - 2.50$ Plus ATM (International) - 5.00$	Required to Sign Up: Pre-Printed personal Cheque, SIN Number, mailed to them. Transfer Time : Not sure. Do you know? E-mail me and I'll credit you as the source. canrocks/a /t/ yahoo.ca Conclusions : There is not one thing attractive about this bank. It's like they're a carbon copy of Achieva, except with more fees, less interest, and a smaller ATM network. This account is a great choice for no one. If you're looking for high interest, get Achieva instead.	Enter the amount you wish to invest to calculate the interest.
ICICI Bank CAD Savings Account	20$, you must keep a minimum balance of $500 for one year	In Branch - 1.50 Telephone Banking - 0.75 ICICI ABMs - Free Pre-Authorized Debit (online transfer) - Free	In Branch - 1.50 Telephone Banking - 0.75 Interac Direct Payment - 0.75 ICICI ABMs - Free All Interac/ US/ Int'l. ABMs (Cirrus network) - 1.25/ 2.00/ 3.00 Bill Payments In Branch/ By Phone/ Online - 1.35/ 0.75/ Free Pre-Authorized Debit (online transfer) - Free	Required to Sign Up: Pre-Printed personal Cheque, 2 pieces of identification photocopied, a copy of your current Bank Statement or Utility Bill with the home address for all the signors. Transfer Time : 2 business days for deposits and 1 business day for withdrawls. (Thanks to Martha Finch for the info) Conclusions : The interest rate is great but not much else is. One thing that lowers its score is the extra signup requirements. For those living near its two branches (Toronto & Brampton) access is convenient and free at their ABMs. Also, for those needing to transfer money back and forth from India, this may also be a great option. Keep in mind that you must have a minimum of $500 in your account to earn interest. This account is a great choice for people who need to transfer money to India, or those who live near its branches.	Enter the amount you wish to invest to calculate the interest.
Manulife Bank Advantage Account	None	ACCEL/The Exchange ATM - Free Cheque By Mail - Free Direct Deposit (Payroll) - Free Online /Telephone Transfer - Free Royal Bank Branch - Free	Cheque - Free ACCEL/The Exchange ATM - 1.25$ Interac ATM - 1.25$ + other fees Cirrus/ Maestro/ ACCEL ATMs (international) - 2.50$ Interac Direct Payment - .50$ Online/ Telephone Transfers - Free Bill Payment - .50$ Pre-Authorised Debit - Free	Required to Sign Up: Pre-Printed personal Cheque, two pieces of Photo ID. You can mail the cheque and the photocopies of the ID or meet a Manulife representative. There are many across Canada. Transfer Time : two business days. Conclusions : This is really just a chequing account that just happens to have low fees and a great interest rate! Absolutely no fees to deposit (The Royal Bank part is a nice touch but the Exchange network is already so big). As well, using cheques are free and transfers out to another bank are free. If you're under 16, you'll need parental permission to get an Access Card. This account is a great choice for anyone looking for a useable chequing account with insanely high interest.	Enter the amount you wish to invest to calculate the interest.
AMEX Bank of Canada Amex Savings	10$ with a minimum deposit of 200$	Cheque By Mail - Free Phone/ Online Transfer - Free	Phone/ Online Transfer - Free	Required to Sign Up: Pre-Printed personal Cheque, SIN Number Transfer Time : No more than one business day. Note that they hold cheque deposits for 5 to 7 days. Conclusions : This account is a bit of an oddity because there is no way to get money in or out, except to transfer to another bank. There are no fees, which is nice, and the free 10$ is nice too, but there's no reason to choose Amex over Manulife. This account is a great choice for people who want 10$.	Enter the amount you wish to invest to calculate the interest.
Citizen's Bank Investment Account	50$ with a referral and a minimum deposit of 500$ (expires Nov. 22 2004) Unlimited Cheques!	Cheque By Mail - Free Phone Transfer - Free Acculink/ The Exchange ATM - Free	Phone Transfer - Free Cheques - Free Bill Payments - Free Interac Direct Payment - Free Interac ATM/ Direct Payment - 4 Free, 1.50$ afterwards, Convenience Fee may apply Plus (international ATM) - 2.00/3.00	Required to Sign Up: Pre-Printed personal Cheque, two pieces of ID, one photo Transfer Time : Not sure. Do you know? E-mail me and I'll credit you as the source. canrocks/a /t/ yahoo.ca Conclusions : Author's Choice! Free unlimited cheques? Wow, great deal. The four free transactions ain't bad either. I'd definitely choose this over ING. Unfortunately, they do not offer this account to those under the age of majority. This account is a great choice for people who want to be able to write cheques on their account.	Enter the amount you wish to invest to calculate the interest.
ING Direct Investment Savings Account	13$ with a referral and a minimum deposit of 100$ (Expires Dec. 31 2004)	Phone/ Online Transfer - Free Cheque by Mail - Free	Phone/ Online Transfer - Free Interac ATMs - 4 Free, ATM fees after (Convenience Fee may apply)	Required to Sign Up: Pre-Printed personal Cheque, SIN Number, mailed to them. Transfer Time : One Night (Thanks to actng from redflagdeals.com for that info). Note that they hold cheque deposits for 5 to 7 days. Conclusions : Again, there is no reason why I would reccomend this over Manulife. The only thing that may make it attractive for some is the 4 free withdrawls on any ATM on the Interac network. If you're under the age of majority, though, they won't issue you a debit card. Oh, and the 13$ referral scheme is nice too. This account is a great choice for people who need fast access to their cash no more than 4 times a month. And people who like referral schemes.	Enter the amount you wish to invest to calculate the interest.
President's Choice Financial Interest First Savings Account	None	Phone/ Online Transfer - Free Amicus ATM - Free Direct Deposit (payroll) - Free	Phone Transfer - Free Amicus ATM (transfer only) - Free	Required to Sign Up: Nothing, if you already have an account with PC. If you don't, you'll need a Pre-Printed personal Cheque, and a SIN Number, mailed to them. If you don't have any cheques, you can go to any PC Financial Pavilion, usually in Loblaws. Also, if you're under 18, you have to go into a pavillion with your parents. Transfer Time : At least one day. Conclusions : This, and the following account are great only if you hold regular accounts with these banks. The interest is pretty low but it's simple to transfer the money in and out of your PC chequing account. Keep in mind that there's a delay of one day for transferring money out of this account. If you're planning on transferring to another bank, you will have to talk to someone on the phone to do it. This account is a great choice for people who have PC Financial chequing accounts.	Enter the amount you wish to invest to calculate the interest.
Bank of Montreal Premium Rate Savings Account	None	Cheque By Mail - Free Phone/ Online Transfer/ ATM - 0.85	Phone/ Online Transfer/ ATM - 0.85	Required to Sign Up: Visit to a BMO branch, SIN Number, and ID Transfer Time : Not sure. Do you know? E-mail me and I'll credit you as the source. canrocks/a /t/ yahoo.ca Conclusions : A great, easy choice for BMO customers, but the non-stop fees turn me off. This account is a great choice for current BMO customers.	Enter the amount you wish to invest to calculate the interest.
Scotiabank Money Master	None	Phone/ Online Transfer - Free Scotiabank ATM/ branch - Free	Phone/ Online Transfer - Free Scotiabank ATM - 5.00$ Interac ATM - 5.00$ + Other Fees	Required to Sign Up: If you already have an account with Scotiabank, you don't need anything. Otherwise, you'll need to go to a Scotiabank branch with two pieces of ID (Credit card, bank card, SIN card, etc.) Also, if you're under 12, you'll have to go into a branch with your parents. Transfer Time : Instant, during business hours. Conclusions : Since I have a regular bank account with Scotiabank, I've been using this account. If I needed to pay with something through Interac, I could simply transfer the money into my regular account on my cell phone and make the purchase. Unlike PC, there's usually no delay for transferring money between accounts. This account is a great choice for people who have a Scotiabank account already.	Enter the amount you wish to invest to calculate the interest.

Glossary

Convenience Fee: A fee on withdrawls from certain ATMs. This will only apply when you are using an ATM that is from a bank that isn't your own. Go to the FCAC's website for more info.

Direct Deposit (payroll): Having your salary automatically deposited into your bank account.
Interac Direct Payment: This is when you use your bank card at a store to pay for goods straight from your bank account.
Referral:A referral is when some one you know with an account sends you an e-mail inviting you to sign up. This is ING's way to encourage word of mouth advertising. The big draw is that when you refer someone, you get 13$ as well. If you want to get the 13$ with my referral code, click here. When they ask for a Referral number, enter 14536418S1. Since I'm getting 13$ when you get 13$, I'm offering a Gmail account invitation to the first 6 people who sign up. It's my way of saying thanks. Thanks.
Pre-Authorized Debit : You can set up your bank account to automatically send sums of money to other accounts at specific times.

Why did you make this page?

Because I couldn't find anything like it on the net. I had to do all my own research.

Why don't you make something like this for chequing accounts?

First of all, because there is already a great resource for that, by FCAC, a government agency. It isn't all-encompassing (smaller credit unions, ICICI bank, Manulife Bank are omitted, interest rate is not taken into account) but on the whole it's awesome. Check it out here.

Another reason is because there is very little competition. PC Financial's chequing account beats all other, hands down. No fees, free personalised cheques, and a really extensive ATM network (being that of CIBC). The only catch is that there may be longer holds on deposits (3,5,10 day holds) and low daily limits on withdrawls ($200) when you start out.

I must mention one exception though. For those that travel abroad a lot, Scotiabank is a really great deal. They have a worldwide free ATM network, meaning that you can access your account at specific banks for free (account level fees still apply). I know, it's crazy. Their cheapest (actually, only) no-fee bank account is called Powerchequing, but you have to keep a minimum of 2000$ in it to stay exempt of fees. And of course they have free accounts for kids and seniors, so hooray for us!

Why didn't you include ***** Bank's high interest savings account?

Because I'm the most ignorant person alive. Please e-mail me to tell me about it (canrocks at yahoo dot.ca) One, I knowingly didn't include; namely, Pacific Western's Sunrise Daily Interest Savings Account. You need to have $10,000 to get a significant interest rate, and still, it would rank second-last.

This page was last modified on . If any of the interest rates are off, please send me an e-mail at canrocks (a t ) yahoodotca. If you like what I'm doing and would like to see more of it (quite a stretch, I know), you can donate by either sending me Paypal payments at the preceding e-mail address, or by signing up for an ING account. I make 13$ and you make 13$, nobody loses!