There are numerous savings accounts available in Canada. As a result, it’s always difficult to scan through everything and choose the best one for you. This is why in this review, we have highlighted three of the best saving accounts with the highest interest rates. Also, we have mentioned their requirements, pros, and cons of using a particular account to make choosing a little easier.
Savings Account Review
Listed below are 3 of the best high-interest saving accounts available to Canadians. All of these accounts are online banking accounts. They also do not have a monthly fee and minimum account balance.
- EQ Bank Savings Account Plus
- Oaken Savings Account
- Alterna Bank High eSavings Account.
EQ Bank Savings Account Plus
The EQ Savings Account is a branch of the Equitable Bank. It is an online savings account that offers a high every-day interest rate of about 1.50%.
The account requests no charge on transfers, withdrawals, bill payments, and other transactions in general. In essence, there is no banking fee. It also doesn’t request a specific amount as a mandatory balance. This indicates that the account is a zero-account.
However, the maximum saving amount for this account is 200,000 dollars. This means that an account holder can’t save more than 200,000 dollars unless he/she opens another account under a different identity. The account is also for short-term or medium-term saving goals since there isn’t a debit card option or a cheque.
The EQ Bank Savings Account Plus is an online bank and therefore, it is always open. You can be assured of 24/7 access to your account from anywhere in the world via online banking or the mobile app.
Although this seems like a sweet deal, there are some sign-up requirements to be met before you can create an account and begin saving. Some of the requirements include:
- The account holder must be a citizen of Canada.
- He/She must be of the age of the majority.
- Must have a Social Insurance Number (SIN).
- Must not be a resident of Quebec.
- Possession of a government-issued photo Identity Card.
- Proof of Address document, in case the address of the user doesn’t match the address on the ID.
- Since the account requires linking it to another financial institution, the institution needs to be approved by the EQ Bank.
Oaken Savings Account
Another account that offers a high-interest rate is the Oaken Saving Account with an interest rate of about 1.40%. Unlike the EQ savings account plus, the Oaken Saving account offers the option for a chequing account with no monthly fee. Also operated with online banking, it has an unlimited free transaction feature, no minimum balance, and no fee on any transaction.
Although the account doesn’t have an operating app, banking transactions can be done through their website using a phone or a computer from anywhere in the world. And though there is no fee on transactions, Oaken charges for monthly paper statement ($2.00 per month), retrieval of past statements greater than 14 months ($5.00 per month), dishonored cheque deposit fee ($20.00 per cheque), dormant account ($20.00 per year), and bank confirmation ($25.00 per letter).
Just as the EQ saving account, only Canadians who are of the age of the majority can open this account. The person would also have to possess a valid photo ID. Any other necessary document would be asked while filling the form to open the account.
Alterna Bank High eSavings Account
Closely related to the aforementioned bank accounts, Alterna Bank eSavings account operates online with no monthly fee. It also has a high-interest eSavings rate of about 1.20% on every dollar. They offer free and unlimited transactions (such as bill payments, transfers, and debits), and unlimited Interac e-Transfer. The account also provides the ‘no minimum balance’ feature.
Accounts can be accessed through online banking and its mobile app anywhere, anytime on both Andriod and IOS phones. Unlike the EQ saving account, citizens and residents of Quebec can open this account and the maximum balance per customer is about 250,000 dollars.
However, the Alterna bank account does not offer a credit or debit card option, and it also places charges on some features, like the Oaken account. The charges include $2.00 per statement for a paper statement, $2.00 per statement for a cheque image in a statement, $1.90 for Interac ATM withdrawals, and $2.50 per month for overdraft protection, $42.50 for NSF fees.
With the three saving accounts highlighted, we believe it would be easier to choose the right bank to work with. However, we advise that you take note of the qualification requirements, the benefits, and the disadvantages to be certain that the savings account you decide to go for is the best for your needs.