Thursday, July 5, 2007

Canadian High-Interest Savings

It's impossible to read a personal finance blog without seeing myriad references to high-interest online savings accounts. ING and HSBC are probably the most commonly cited, and since most of these blogs are based in the US, they refer to these banks' 4.50% and 5.05% APY (respectively). This can get a little frustrating to us Canucks, as we simply don't have access to the same rates that are available south of the border. I thought I'd do a quick write-up of the deals that are to be had in Canadian online banking.

ING Direct

ING currently offers Canadians an everyday APR of 3.50% (calculated daily, this is equivalent to a 3.56% APY), with no minimum balance. They currently have a promotion rate of 4.25% on new balances until August 31, so it's a good time to try them out. If you e-mail me for a referral, you'll also receive a $13 bonus when you deposit at least $100 into your new account (a nice complement to the incentive rate).

HSBC Direct

HSBC also offers 3.50% APR, with no minimum balance. They currently have a signing bonus of $50 for new customers, but this is only for accounts opened by Monday. With an HSBC account, you can use any HSBC or BMO bank machine for free.

PC Financial

PC Financial offers a 4.0% APR (equivalent to a 4.08% APY) if you maintain a balance over $1,000, but only 1.0% if the balance is $1,000 or less. With a PC account, you can use either PC or CIBC bank machines for free.

Other Options

I found an article from last fall that goes through the various Canadian options in detail. The author seems to recommend PC Financial overall, but ICICI receives positive mention as well. Check it out...

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