From holidays to rainy days, high interest savings accounts are an ideal way to prepare for future financial demands.
With minimal deposit requirements and competitive rates, these facilities can reliably grow your money over extended periods of time. There are many different providers offering high interest savings accounts today. Of course, not all of them are equal. Knowing who to choose will help you make the most of your investment.
What are High Interest Savings Accounts?
As you can probably guess, high interest savings accounts offer better interest rates than their standard counterparts. They primarily serve as long-term investments and are not designed for everyday use.
This is reflected in their transaction fees, which tend to be higher than other types of accounts. While high interest savings accounts that don’t charge for transfers are available, providers usually compromise in another area to make up for the cost. That’s why it’s important to be diligent when comparing your options.
High interest savings accounts may be opened at virtually any bank or credit union. You don’t necessarily need to open one with the financial institution you currently bank with.
How to Find the Right High Interest Savings Account
When searching for the best high interest savings account, your needs and preferences will largely determine the most suitable options. However, there are several factors that everyone should consider. Look for accounts that:
Are insured by the FDIC
Come from reputable banks
Charge low or flexible fees
Have high everyday interest rates
Online providers generally come out ahead with regards to interest rates and fees since they forgo the cost of running physical branches. Keep an eye out for useful extras such as mobile banking and bill payments. You may encounter some enticing incentives and promotional rates along the way. It’s wise to approach these with caution.
The Best High Interest Savings Account Providers
As we mentioned earlier, there isn’t one high interest savings account in Canada that stands above the rest. You can, however, narrow down your search by considering leading providers. If high interest rates are your priority, Tangerine offers an impressive 2.10% purchase interest rate in addition to unlimited transfers.
The Savings Plus account from EQ Bank might only have a 1.50% purchase interest rate, but you benefit from no monthly fees and free e-transfers. Here are five more popular options:
MAXA Financial - High Interest Savings Account
Oaken Financial - Oaken Savings Account
Wealthsimple - Wealthsimple Cash
CIBC - eAdvantage Savings Account
Scotiabank - Momentum PLUS Savings Account
Alternative Savings Accounts
Depending on your circumstances, there might be another type of savings account that’s worth looking into.
Some providers offer senior accounts for clients aged 60 and over. These typically have benefits such as lower transaction fees and deposit requirements. Youth savings accounts are perfect for children who want to learn about banking and saving money.
Finally, there are tax-free savings accounts. While these don’t subject your earnings to taxes, interest rates are also low.
Conclusion
Take some time to weigh up your options. Soon enough, you’ll be watching your savings grow to new heights.