This is the first part of a series of three articles about your options when it comes to opening a high interest savings account in Canada.
If you have any questions or want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).
Introduction
A high interest savings account, just as the name implies, offers an interest rate that is usually 20 to 25 times higher than what standard savings accounts provide. This product is commonly offered by digital banks.
Opening a high interest savings account in Canada is a relatively safe investment wherein you can temporarily place your money. It is appropriate for those who want to start dipping their toes in the water of investing without committing large sums of money. At the same time, funds in these accounts are more easily accessible should you need to use them.
In this article, you will learn more about how you can earn an interest rate of at least 1.40%. Let’s take a look at what financial institutions have to offer.
High Interest Savings Account in Canada: A List of Four Institutions
1. Wyth Financial
The High Interest Savings Account at Wyth Financial offers a yearly interest rate of 1.55%.
Because of its favorable features, it was given the award for the Top High Interest Savings Account in Ratehub’s 2022 Personal Finance Awards.
There is no minimum investment amount required to register for an account. However, you will only be able to invest a maximum of CAD $150,000. For amounts over the maximum, you will not earn interest anymore.
To start earning from this high interest savings account in Canada, you must first create an account. But before doing so, make sure that you meet the following eligibility criteria:
- Resident of Canada, but not living in Quebec
- Must be of legal age in your province
When this has been cleared, prepare your Social Insurance Number, provincial driver’s license, and your phone or email. The whole registration process should only take a few minutes of your time.
To fund your account, you can link it to an external account, use Interac e-Transfer, or deposit a mobile cheque.
There are no monthly fees to be paid once you open your High Interest Savings Account. But that is not the only feature that is free of charge. The following will also come at no cost to you: depositing into your account through Interac e-Transfers; electronic fund transfers (EFT); transferring to another account; transaction tracing; account closure; and account dormancy.
Every month, you will have one free Interac e-Transfer withdrawal. This is not cumulative, which means that you can have no more than 1 free withdrawal per month, even if it was unused in the month prior. If you need to withdraw money more than once, a $1.50 fee will be charged.
The maximum deposits and withdrawals mentioned in the next two paragraphs apply when the Interac e-Transfer is used.
There is a $25,000 maximum amount per deposit. But, there are no limits to the total amount that you can deposit in a day, week, or month. This means that you can have multiple deposit transactions if you need to cash in more than $25,000.
However, there is a limit to the amount that you can withdraw. In one transaction, only $3,000 can be withdrawn. The following maximum withdrawal amounts apply under certain conditions: $10,000 daily, $10,000 weekly, and $20,000 monthly.
For account holders who need to deposit or withdraw larger amounts than what was stated, they can make use of electronic funds transfer. This allows them to withdraw $50,000 per transaction and per day. To deposit using this method, there is a maximum amount of $150,000 per transaction.
Furthermore, it is part of the Canada Deposit Insurance Corporation (CDIC). This means that another institution will protect your deposit should Wyth Financial fail to do so. Up to $100,000 is insured.
2. Saven Financial
The High Interest Savings Account at Saven Financial offers an interest rate of 1.50% per annum.
Only Ontario residents who are 18 years old and above are eligible to register for a savings account. When this criteria is met, you should prepare the following requirements: personal information, social insurance number, and mobile phone.
A small fee will be asked for when you create an account. But there is no minimum balance requirement to maintain it.
Since Saven is a division of FirstOntario Credit Union, an investment of $25 is needed. This fee will make you a shareholder of FirstOntario and entitle you to benefits such as an annual dividend payment. But, if you are already a FirstOntario member, the $25 fee will be refunded to you.
There are no monthly or transaction fees to be paid when you make use of your High Interest Savings Account with Saven Financial. This means that you can deposit, withdraw, and avail of their services for free. Fees will be applied only when you have insufficient funds for a transaction that you perform.
Saven has a mobile application accessible to both Apple and Android users.
Your account is insured by the Financial Services Regulatory Authority of Ontario (FSRA). Specifically, up to $250,000 will be well protected.
3. AcceleRate Financial
The High Interest Savings Account at AcceleRate Financial offers an interest rate of 1.40% per year.
No minimum balance is required to open an account. An additional perk of creating an account with AcceleRate Financial is that you will be issued your very own cheque for free. You will also receive a free AcceleRate Flash-enabled debit card.
To register for an account, the following requirements must be met:
- At least 18 years old
- Have an existing account and a personalized cheque from a different Canadian financial institution
- Have a Social Insurance Number (SIN) that is valid
- Have completed the declaration of tax residency form
Filling out the declaration of tax residency form is done in compliance with the Common Reporting Standard of the Canada Revenue Agency.
There are also no monthly service fees to be paid. And, deposits can be made at no cost. Putting money into your account is very easy to do. You can deposit using your cheque, cash in at an ATM, mail your deposit slip to AcceleRate Financial, or use the INTERAC e-transfer.
You can also enable automatic transfers to your AcceleRate account from an account at another financial institution. A minimum deposit of $25 is required to enjoy this feature. This can help you prevent spending the money that you planned to save.
Every month, account holders are given 1 free withdrawal, which can be done through various channels. You can transfer money to another account, use your AcceleRate Financial personal cheque, withdraw from an ATM using your debit card, or use it when you go shopping. Additional withdrawals will cost $1.00 per transaction.
You can use the AcceleRate Flash-enabled debit card at Credit Union ATMs that have an ACCULINK logo. Deposits and balance inquiries are free of charge. But a fee of $1.00 will be charged for withdrawals and transfers.
If you decide to use your card at an ATM that is not part of the ACCULINK network, you will have to pay $2.00 per withdrawal. The fee is higher when withdrawing from a U.S. or Cirrus ATM. It costs $3.50 per withdrawal. In addition to the aforementioned fees per transaction, $1.00 will be deducted from your account at the end of the month.
They have a mobile application which can be downloaded from either the App Store or Google Play.
All of your money at AcceleRate Financial (100%) is insured by the Deposit Guarantee Corporation of Manitoba.
4. Hubert Financial
The Happy High Interest Savings Account at Hubert Financial offers an interest rate of 1.40% per annum.
Canadian residents who are 18 years of age or older can open an account. Other requirements that must be complied with are the following:
- Have an account from another financial institution in Canada
- Have a valid Social Insurance Number (SIN)
- Have an email address
- Agree to invest in a $5 share, which is refundable
The application process will take approximately 5 to 10 minutes of your time. It can be done through this online form. Once submitted, your application will be under review. But this wouldn’t take more than 1 business day to complete. When approved, you just need to make an initial deposit of $5 to purchase a membership share. After the payment is validated, your account will be activated and further instructions will be sent to you.
As stated, the $5 fee to purchase a share is refundable. If you decide to close your account, it will be returned to you in accordance with the redemption process of Sunova Credit Union.
There is no minimum balance required to maintain a High Interest Savings Account. Monthly service fees are also null.
Furthermore, there are no fees to be paid to make a deposit, transfer funds, or withdraw your savings. But wire transfers and dormant accounts come at a cost. Wire transfers from Canada have a $9.53 CAD fee, and those from the USA are charged $12.36 USD. Inactive accounts that have had a balance of less than $1,000 for 6 months will be charged a fee of $25.
Depositing to an account can be done through your Hubert GO Web account. First, you have to include an external account in your “transfer accounts list.” The external account that you used during the application process will already be included in the list. But you can add a maximum of 30 external accounts should you wish to do so. Then, you just have to initiate the transfer. However, there is a 6-day holding period for funds that are cashed in.
Another option would be to send a cheque to the office of Hubert Financial so that they can make the deposit for you. There is also a holding period of 5 days, just one day shorter than the online option of depositing.
Withdrawals can only be initiated using the Hubert GO Web. The money withdrawn will be credited to the account included in your “transfer accounts list.” Expect the money to arrive in your external account within 3 to 5 business days.
There is a maximum to the amount that you can withdraw. Specifically, the following is applied: $50,000 every 24 hours, $250,000 every 7 days, and $500,000 every month. For withdrawals beyond the maximum amount, you can contact Hubert Financial to assist you with this request.
No cheques or ATM cards will be provided when you open a Hubert Financial account.
Your money at Hubert Financial is insured by the Deposit Guarantee Corporation of Manitoba.
High Interest Savings Account in Canada: A Summary
| Financial Institution | Interest Rates | Initial Investment | Limitations |
| Wyth Financial | 1.55% | $0 | |
| Saven Financial | 1.50% | $25 | Only Ontario residents can open an account |
| AcceleRate Financial | 1.40% | $0 | |
| Hubert Financial | 1.40% | $5 |
In all of the four high interest savings accounts mentioned above, there is no minimum balance required to maintain them. They are also insured by relevant institutions.
There are no transaction fees for deposits and withdrawals when using the High Interest Savings Account at Saven Financial and Hubert Financial. Wyeth and AcceleRate offer 1 free withdrawal for a certain period of time, but any more than that will be charged a minimal fee.
AcceleRate offers cheques and ATM cards to account holders. All of your savings in an account with them are also guaranteed, no matter how much that is.
Carry on to part 2 here.
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