ADJ Picks Canada’s Best High Interest Savings Accounts
|If you are looking for Chequing Account Review, you may want to read: Canada’s Best Chequing Accounts|
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I am addicted to ADJ site statistics and I am checking stats probably hundreds of times a day. I just don’t check stats bluntly; I try to analyze and understand my readers’ behavior to see if I am meeting their expectations and figure out what else I can do to serve them better.
Take this picture you are looking at on the top left, for example. One reader searched ADJ for ING Direct a few times and then accessed this article Canadian Tire Bank Make $20 For Free What does this tell you? This reader was looking for an article on high interest savings accounts, and probably left ADJ unsatisfied, not finding what he was looking for. That makes him an unhappy reader and it signals me to write an article on this topic. That’s the reason I am writing this article today.
One thing I need to mention that I covered all IP addresses on the screen shot. An IP address is a unique number assigned to each individual; it’s like a phone number but it exists only on online. That is why I blocked it with a heavy blue mark. I circled ING Direct and Canadian Tire Bank by medium heavy red mark to show you. Now, let’s get back to our main article.
I have researched most of the high interest paying banks in Canada but I am only going to elaborate on a few of them, as I don’t want to inundate you with information you don’t need. If you are curious and want to find out more than what I have mentioned, do a search on Google by entering “Canada high interest savings” and you can pore through the many pages of search results.
Last Updated: Aug 28, 2010
Canada’s Best High Interest Savings Accounts – My First Pick
The Ally High Interest Savings Account Interest rate = 2.00%
- You can open an account with $1 only.
- Interest is compounded daily
- 24/7 customer service.
- Website shows current call waiting time and has live chat option.
Canada’s Best High Interest Savings Accounts – My Second Pick
Achieva Financial Interest rate = 1.85%
- Achieva Savings Account offers chequing privileges and one free cheque per month.
- Use Credit Union AccuLink ATMs to make deposits
- Make cash withdrawals at most ATM
Canada’s Best High Interest Savings Accounts – My Third Pick
Outlook Financial Interest rate = 1.75%
- One monthly free debit
- Access your account by cheque or member card
- Write cheque, make debit card payments, and pay bills electronically
Let’s look at some other banks offering high interest savings accounts:
Canadian Tire High Interest Savings Account – Interest Rate 1.50%
Yes, Canadian Tire offers financial services, and their savings account is not bad at all. Some of the features are:
- Telephone customer service
- No fees
- No minimum required
- Easy fund transfers
ING Direct ING pioneered high interest savings products. However, they no longer provide the highest interest rate. Interest rate = 1.50%
ICICI Bank Canada – ICICI bank HiSave Savings Account used to be the highest interest paying bank in Canada. However, they no longer provide top interest any more. Their customer service is very poor and there were many complaints. I called them probably 100s of times and no one ever picked up phone. Calls are always directed to answering machine. I do not recommend ICICI. Interest rate = 1.60%
President Choice Financial Bank PCF offers two types of savings accounts. Interest Plus Savings Account offers 1.50% interest on a balance over $1000 (plus you get anniversary bonus interest). Interest First savings Account offers .65% interest.
Manulife Bank Manulife bank offers a chequing account called Advantage account. This chequing account offers high interest rate and you can use Royal Bank branch or The Exchange ATM network to deposit your money. Internet banking allows to transfer funds to other financial institutions. Interest rate = 1.30%
HSBC Direct Savings Account – Interest Rate 0.75%
Packed with many free features. Some of them are:
- Free pre-authorized debits
- Free transfers
- Free ATM access
- Free bill payments
HSBC claims that you can open an online account in 7 minutes. Visit their website for more info.
High Interest Savings Accounts should only be used to park money for your short-term savings. I do not use or recommend this type of account for the long-term. In Invest Now I mentioned the following – “Research has shown that the stock market has averaged an annual 11% rate of return over the last 120 years. Cash has managed to return only 4% annually for the same 120 years. You will be surprised to know that stock markets actually have outperformed home values by a considerable margin in the long run.” You can replicate stock market by buying low cost index fund. In my book Invest Now I have dedicated a whole chapter to index fund. Also, I have showed how you can start investing with as little as $25.