Articles
Canadian High Interest Savings Accounts go head to head
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First Posted: December 1, 2004
Last Updated: September 19, 2009
By Denis Agar
Which banks are in the running?
Here's a list:
Which one is right for me?
There are many things to consider before signing up for an account. Here are all the different factors to be discussed:
- Signup Requirements: There's no point in even bothering if you can't sign up.
- Interest Rates: After all, isn't that the reason you'd choose one of these over your usual chequing account?
- Access Methods: Some accounts offer great interest rates, but what happens if you're paying more in withdrawal fees than you're earning?
- Signup Bonuses: With such similar interest rates, some banks really want to set themselves apart.
Signup Requirements
Most of these banks ask for identification to comply with within money-laundering legislation. Some banks offer extras like overdraft protection, so they need more ID to be able to check your credit rating.
| Bank |
Requirements |
| Achieva |
Personal Cheque mailed to them, SIN Number. |
| Ally |
Personal Cheque mailed to them, SIN Number. Not available in Quebec. Must be over the age of majority. |
| Canadian Direct Financial |
Personal Cheque mailed to them, SIN Number, employment info. Not available in Quebec. Must be over the age of majority. |
| Canadian Tire Financial Services |
Personal Cheque mailed to them, SIN Number. Must be over the age of 12. |
| HSBC |
Personal Cheque mailed to them, SIN Number. Must be over the age of majority. |
| ICICI |
Personal Cheque mailed to them, SIN Number, Employment info. Must be over the age of majority. |
| ING Direct |
Personal Cheque mailed to them, SIN Number, Physical home address |
| Manulife |
Personal Cheque mailed to them, SIN Number, two pieces of ID (one must have photo) photocopied and sent to them |
| Maxa Financial |
Personal Cheque mailed to them, SIN Number, employment info. |
| Outlook |
Personal Cheque mailed to them, SIN Number |
| People's Trust |
Personal Cheque mailed to them, SIN Number |
| President's Choice |
SIN Number, visit to a PC Financial Pavillion with 2 forms of ID (one with a photo) OR a personal cheque mailed to them. |
| Royal Bank |
Personal Cheque for at least $25 mailed to them (or a visit to a branch), photocopies of two pieces of ID (one must have a signature). Must be over the age of majority. |
Interest Rates
You can't argue with the facts, a better interest rate is a better interest rate. I've included some old interest rates this time just to show how much things have changed in the last 9 months. Here's the lineup:
| Bank |
Interest Rate as of September 19, 2009 |
Old Interest Rate as of December 30, 2008 |
| People's Trust |
2.10% |
4.00% |
| Ally |
2.00% |
N/A |
| Canadian Direct Financial |
2.00% |
N/A |
| MAXA Financial |
2.00% |
N/A |
| Achieva |
1.85% |
3.05% |
| Outlook |
1.50% |
3.05% |
| ICICI |
1.40% |
2.50% |
| Canadian Tire |
1.20% |
2.75% |
| ING Direct |
1.05% |
2.70% |
| Manulife |
1.00% |
2.55% |
| HSBC |
0.80% |
2.75% |
| President's Choice Interest Plus |
0.75%* |
2.75%* |
| Royal Bank |
0.75% |
2.50% |
*On accounts containing more than $1000 (calculated daily, so you'll only lose a day of interest if your account drops below the threshold). Balances below $1000 collect 0.50% interest. Also, PC will raise your interest rate depending on how much you've kept in the account for how long. See PC's site for more details.
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