Author Topic: High Interest Savings Accounts (Canada) and another banking question  (Read 4376 times)

meghan88

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I've been using this site as a resource to find HISA interest rates being offered - I have my emergency stash at one of the better ones on the list.  Anyone know of any other institutions in Canada that offer better (consistent - not teaser) rates?

https://www.highinterestsavings.ca/chart/

I'm also wondering what Canadian mustachians do for HISAs and for regular banking.  I keep an account at TD that gives me all transactions including annual fees ($170 for two cards) on my point-earning Infinite card for free.  The downside is that I have to maintain a 5K balance.

Saskatchewstachian

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #1 on: October 13, 2016, 10:22:29 AM »
DW and I previously used Tangerine as a savings account while saving up for a down payment but I think the higher interest on the ones listed would be better.

For day to day we use Scotia chequing that gives us unlimited debit transactions, we have never paid a single bank fee with them in a number of years however you must keep $3500 in the account for no fees to be applied.

For an emergency fund right now we have moved away from keeping 3-6 months in cash in any savings account and instead of a line of credit sitting at $0 and 4.6%. IF we needed emergency cash over and above our standard chequing account and IF equities are down then we would put it on the line of credit and pay it off as soon as possible. Otherwise it would just be selling small amounts out of our taxable account.

PharmaStache

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #2 on: October 13, 2016, 11:39:30 AM »
I only use credit unions, so my everyday bank account is with a local cu and my HISA (which is my emergency fund, in a regular taxable account) is with one of the cus on your list.  I do not worry about chasing the highest interest rates- they are still low no matter what, I don't have a ton of money in the emergency fund so it's not a huge amount of interest, and it's taxable anyway.  I just like having the emergency fund off in another place so I am not tempted to buy more index funds :)

techwiz

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #3 on: October 13, 2016, 11:47:03 AM »
I use Tangerine. A tip for their high interest saving account if you call them and reference a higher interest rate from another bank they will sometimes match or come close to the other's banks offer for 3-6 months. After the bonus interest runs out you can always repeat the process. It's worked for me multiple times and only takes a quick phone call.

     

Goldielocks

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #4 on: October 13, 2016, 02:31:04 PM »
I put my "ready cash" into TD Eseries BOND funds.

It is within my online brokerage with them, and there is no cost to buy or sell units, and only 24 hr delay to access money. 

The rates are not guaranteed, of course, but exceptionally rare to fall below 0%, and result in double the interest that your linked page shows, without minimum investments required.

I started this with my cash that I want to use to invest (in larger $'s) once accumulated, then realized it was a great alternative to just a savings account.

meghan88

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #5 on: October 13, 2016, 02:40:00 PM »
I put my "ready cash" into TD Eseries BOND funds.

It is within my online brokerage with them, and there is no cost to buy or sell units, and only 24 hr delay to access money. 

The rates are not guaranteed, of course, but exceptionally rare to fall below 0%, and result in double the interest that your linked page shows, without minimum investments required.

I started this with my cash that I want to use to invest (in larger $'s) once accumulated, then realized it was a great alternative to just a savings account.

That sounds interesting - so you use this one?  http://www.tdassetmanagement.com/fundDetails.form?fundId=4817&prodGroupId=1&lang=en&site=TDCT

techwiz and Saskatchewstachian - are there any fees with Tangerine, e.g., for ATM withdrawals in Canada or abroad?  Can it link to Questrade or other discount brokerages, and how long do the transfers take?

Goldielocks

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #6 on: October 13, 2016, 02:55:14 PM »
Yep.  They have a couple of variations.

techwiz

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #7 on: October 14, 2016, 12:52:43 PM »

Quote
techwiz and Saskatchewstachian - are there any fees with Tangerine, e.g., for ATM withdrawals in Canada or abroad?  Can it link to Questrade or other discount brokerages, and how long do the transfers take?

Scotiabank ATM withdraws are free. 
Most things are free with Tangerine there tag line is "Fair Fees"
Here are some of the fees they do have:

Canadian drafts (includes courier) $10
NSF (Non-Sufficient Funds) returned cheques & Pre-Authorized Debits $25
Other ABM withdrawals (not a Tangerine or Scotiabank ABM) - In Canada $1
Other ABM withdrawals (not part of Global ATM Alliance1) - In the US / Worldwide $2

You can link your Tangerine to other brokerages transfers take 1 - 2 business days.

KMMK

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #8 on: October 14, 2016, 01:22:29 PM »
I use Outlook Financial (on the list) for my HISA and local credit union for daily banking. PCF for credit card and TD e-series for investments.

PharmaStache

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #9 on: October 14, 2016, 02:48:56 PM »
I use Outlook Financial (on the list) for my HISA and local credit union for daily banking. PCF for credit card and TD e-series for investments.

If you move from td e-series to questrade, we can be financial twins :)

mgarf

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #10 on: October 14, 2016, 03:33:39 PM »
I put my "ready cash" into TD Eseries BOND funds.

It is within my online brokerage with them, and there is no cost to buy or sell units, and only 24 hr delay to access money. 

The rates are not guaranteed, of course, but exceptionally rare to fall below 0%, and result in double the interest that your linked page shows, without minimum investments required.

I started this with my cash that I want to use to invest (in larger $'s) once accumulated, then realized it was a great alternative to just a savings account.

I'd be wary of the bond funds... especially for short term investments. From my review of canadian options, TD does have the best rates of all the mutual funds. However, for their bond options, they still charge quite a high MERs. Their ultra-short maturity fund (https://www.tdassetmanagement.com/fundDetails.form?fundId=6397&prodGroupId=1&lang=en&site=AssetManagement) makes little sense compared to a HISA. It has an MER of 0.59% and with current ultra-low interest rates it's giving much less (0.6% over the past year) than the HISA at tangerine (currently 0.8%).

You'll get better SPOT return with longer maturity funds (which I believe you hold?)... but it's really not worth the risk if your time horizon is a year or two. (if interest rates rise, you're screwed).

For short term, we're currently using Tangerine... it seems to have the best rates of all the bigger banks... and has a nice 2.4% teaser rate for first few months.
« Last Edit: October 14, 2016, 03:37:26 PM by mgarf »

Goldielocks

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #11 on: October 14, 2016, 03:53:47 PM »
Well, as others say, 0.8% is incredibly low.  I just saw an offer of 1.35% on 18 months.  Not annual 1.35%, but over 1.5 years.

At the low rates, it is not worth it to me to set up an account and risk fees on redemptions or guarantee minimum amounts. When combined with free mo etc, it is fine.

The bond fund such as TDB909 does better, has the chance of doing a lot better (3%) and most important, is super flexible to move money in or out.   As for the MER, I use an ETF for my primary bond holding, but only when I buy several thousand at a time, high MERs mutual fund are good for lower total $ with lots of in/ out action, like a savings account.


NorthernDreamer

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #12 on: October 14, 2016, 08:12:55 PM »
I bank with President's Choice - no fees for accounts or credit cards. And I only keep about $5000 in a HISA with them - maybe earning 0.85%.

mgarf

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #13 on: October 14, 2016, 08:55:03 PM »
The bond fund such as TDB909 does better, has the chance of doing a lot better (3%) and most important, is super flexible to move money in or out.   As for the MER, I use an ETF for my primary bond holding, but only when I buy several thousand at a time, high MERs mutual fund are good for lower total $ with lots of in/ out action, like a savings account.

Half of the bonds in TDB909 are >5 year maturity. This makes it extremely sensitive to changes in interest rates. In fact it just lost 0.4% today! It does have the chance of doing a lot better, but also a lot worse. So if you want to be risk averse for your short-term cash allocation, HISA or ultra-short bonds are the way to go. 

Goldielocks

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #14 on: October 15, 2016, 04:25:08 PM »
BWAHAHAHAHA     I don't personally find that drop to be particularly risky, compared to my past history of mistakes.


meghan88

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #15 on: October 15, 2016, 05:11:24 PM »
BWAHAHAHAHA     I don't personally find that drop to be particularly risky, compared to my past history of mistakes.

LOL ... past history of mistakes ... do tell.  I make more mistakes than I can count.  In fact, if I do something, I should post it because everyone would know to do exactly the opposite.

I'm thinking I might be best off to stick with TD for now because of the Infinite card, which nets us about $700-800 in travel money in a year, and the totally free banking, even at ATMs abroad.  Not happy about the 5K minimum, but so be it.

Stachey

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #16 on: December 05, 2016, 09:52:07 AM »
Does anyone use Oaken Financial?  They have high rates but I was researching the parent company (Home Trust Company) which seems to do high risk loans?
Just wondering if anyone has had any experience with Oaken.

Ms. Stache

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #17 on: December 06, 2016, 10:50:59 AM »
I have a savings account and GICs with Oaken. Don't be fooled by the name "Home Trust" -- they are a bank and are CDIC insured, so I'm not too worried about how they are lending out their money. I don't interact with them often, but the service has been fine.

GreatLaker

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #18 on: December 06, 2016, 01:07:33 PM »
I have a savings account with Oaken and have not had any problems. For some reason they provide paper statements rather than online, but I don't consider that to be an issue, and they claim to be working on online statements. Transfers to/from my TD account are always completed in a day or 2.

I also have accounts with Tangerine and EQ Bank. All have good online interfaces. Oaken has the lowest rate of the 3 so I have the least $ there, but if Tangering stops giving me promo rates I will switch from them to Oaken.

Kaspian

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #19 on: December 06, 2016, 01:41:41 PM »
How big is your emergency fund?  Mine's only 3 months worth--$5000.  I keep it in a (fairly low interest) HISA at TD.  As interest income in a regular account is fully taxable at your marginal rate, I figure I'm leaving about $30 a year (maximum) on the table by not chasing that extra 1%.  Is that worth the extra hassle of opening and managing a new HISA account with a different institution?  Not for me personally.  I've weighed the lost cost against the convenience of having it easily accessible with my other banking if/when I have to use the emergency money. 

dess1313

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #20 on: December 07, 2016, 12:31:22 AM »
I do most of my banking now with tangerine.  If you watch for promo's they often have bonus interest rates.  For example see this link for this month's promo  https://www.tangerine.ca/en/landing-page/save-faster/index.html?treatmentCode=1e15.28f.ffffffffcac50534.ffffffffb18ca5bc

Its not always the highest, but no fees make it nice.  The other big box banks i have been at always want to ding fees onto everything. 

techwiz

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Re: High Interest Savings Accounts (Canada) and another banking question
« Reply #21 on: December 07, 2016, 07:47:38 AM »
Tangerine will also give promotional rates to existing customers on your saving account if you call them up and ask them. Usually the promo rate only lasts for 3 months ,but it's worth 10 minutes on hold and a few minutes for them to get a promo approved for you. Currently I have 2% with them.

Just quote a rate from this site https://www.highinterestsavings.ca/chart/ that is higher than they are offering and they will likely match it for three months. I used "Alterna Bank".

Rinse and repeat every three months.

P.S. Don't take sorry you don't qualify as an answer just ask to speak to a supervisor and you should be able to get a matching rate after another 5 minutes or so.