scotia high interest savings account

Scotiabank, formerly known as the Bank of Nova Scotia, has operated in Canada Rates for Scotiabank savings accounts and high-interest savings accounts. However, those looking to maximize interest earned on deposit products, such as checking and savings accounts, may want to look elsewhere. B2B Bank is a leading provider of banking products and services to financial advisors and mortgage brokers across Canada.

Scotia high interest savings account -

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Banks often pay low interest rates on savings accounts. In February 2020, the average annual percentage yield, or APY,  for U.S. savings accounts was just 0.09%.

One reason savings account rates are so low is that financial institutions profit when the rate on the money they lend out is higher than the rate they pay people who deposit money into savings.

When rates on loans are low, banks like to keep savings account rates even lower to continue making money on them.

Another reason some banks may not need to offer higher interest rates is that they’ve already won a large share of customers and aren’t competing aggressively with other banks for new business, according to research by Itmar Drechsler, a professor of finance at the University of Pennsylvania.

We’ll review places to look for higher interest rates as well as alternatives to savings accounts.

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Where can I find a higher rate on a savings account?

Although interest rates on savings accounts are often low, you can find higher rates if you shop around. Online banks are a good place to start.

Look for an online savings account, such as Credit Karma Savings, that’s a high-yield savings account. These bank accounts could have interest rates above the national average. Over time, that can get you greater dividends for your money.

Take this example, where you deposit $500 for a year.

Type of savings accountInterest rateBalance after one year (compounded monthly)

High-yield savings account

1.8%

$509.07

Traditional savings account

0.09%

$500.45


For security and peace of mind, make sure your savings account is protected at an institution that’s FDIC insured.

How are interest rates set on savings accounts?

Although financial institutions set their own interest rates, the Federal Reserve can influence rates by buying and selling financial products like bonds. This affects the federal funds rate, which is the rate banks charge other banks on overnight loans. The federal funds rate trickles down to affect other interest rates, including your savings account rates and the rates you pay on auto loans, credit cards and mortgages.

As of October 2019, the federal funds rate was 1.83%. Compare that to November 2000, when it was 6.51%.

Alternatives to savings accounts

You may be able to earn higher returns if you open different types of accounts to grow your savings. Here are some alternatives to savings accounts.

CDs

A certificate of deposit, or CD, is a type of bank account that holds your deposit for a set term, which could be six months, a year or longer. CDs pay either fixed or variable interest, and you receive the interest plus the amount you deposited when the CD’s term is up. The downside is you may pay a penalty for early withdrawal.

Interest rates on CDs are usually higher than on conventional savings accounts.

You can choose to open one CD and wait until it matures to access all your funds at once, or you can open several CDs with different terms using a CD ladder strategy and access your money at regular intervals as the individual CDs mature.

Money market accounts

A money market account is another type of deposit account at a bank or credit union. You may need to make a minimum deposit to open a money market account. You can make withdrawals or, like a checking account, payments from your account — but typically not more than six times a month.

The interest rate on money market accounts is usually higher than on conventional savings accounts.

Keep in mind that money market funds, or money market mutual accounts, are not the same as money market deposit accounts. Money market funds are investments that are not insured by the FDIC.

Mutual funds and ETFs

Investors form a mutual fund by combining their money and using it to buy investments like stocks and bonds. You can buy shares in a mutual fund to own a portion of the fund’s investments. You’re able to cash out of a mutual fund for a fee whenever you choose, and you receive the value of the assets you hold in the fund.

An exchange traded fund, or ETF, is similar to a mutual fund because you can buy shares in the fund and it invests in stock, bonds and other securities. But if you sell your shares in an ETF, you’ll receive the market value that those shares currently sell for rather than the value of the fund’s assets that corresponds to your shares.

Buying shares in a mutual fund or ETF can potentially result in a higher return than putting money in a savings account. But these investments are not guaranteed by the FDIC, so their value could go down. You could lose some or all of the money you invest.


What’s next?

Before choosing a savings account, research your options and think about your financial goals. Here are some questions to ask yourself.

  • What APY does the account have?
  • Is there a minimum deposit?
  • Are there any fees for opening or withdrawing funds?
  • Do I need access to a physical bank branch?
  • What level of risk am I willing to take?

For Credit Karma Savings: Banking services provided by MVB Bank, Inc., Member FDIC. 

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About the author: Sarah Brodsky is a freelance writer covering personal finance and economics. She has a bachelor’s degree in economics from The University of Chicago. Sarah has written for companies such as Hcareers, Impactivate and K… Read more.

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Источник: https://www.creditkarma.com/savings/i/why-are-interest-rates-low-on-savings-accounts

Biden says U.S. gasoline prices will drop after release of strategic reserves

By Alexandra Alper

WASHINGTON (Reuters) - U.S. President Joe Biden on Tuesday touted his administration's international and domestic efforts to tackle inflation and high gasoline prices, promising Americans a drop in prices at the pump 'before long."

The Democratic president announced what he called the largest-ever release from the U.S. Strategic Petroleum Reserve to boost domestic supplies, in coordination with other countries. The White House is also probing possible illegal conduct by oil and gasoline companies that it says are keeping gas prices artificially high.

"I told you before that we're going to take action on these problems. That's exactly what we're doing," Biden said in remarks broadcast from the White House.

"It will take time, but before long you should see the price of gas drop where you fill up your tank, and in the longer-term we will reduce our reliance on oil as we shift to clean energy."

Biden's administration along with the Federal Reserve had described sharp spikes in inflation earlier this year as transitory, but pressure for action has grown as the price surges have continued into the fall.

The Labor Department's Bureau of Labor Statistics reported earlier this month that U.S. consumer prices in October posted their biggest annual gain in 31 years, driven by large jumps in the cost of gasoline and other goods.

Biden acknowledged the pain Americans were feeling, but said his administration was working to clear logjams in supply chains, speed up work at U.S. ports and work with retailers to ensure that store shelves were stocked with "everything from bicycles to ice skates" in time for the winter holidays.

The White House on Tuesday announced plans to release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain to cool prices after producers in the OPEC+ group repeatedly ignored calls for more crude.

Biden also took aim at companies that he said were making record profits while failing to pass savings along to consumers.

"If the gap between wholesale and retail gas prices was in line with past averages, Americans would be paying at least 25 cents less per gallon right now," he said. "Instead, companies are pocketing the difference as profit, and that's unacceptable."

Biden last week said there was mounting evidence of anti-consumer behavior by oil and gas companies that is keeping fuel prices elevated, asking the Federal Trade Commission to dig deeper into possible "illegal conduct" in the market.

White House press secretary Jen Psaki on Monday also highlighted the administration's call for the Federal Maritime Commission to ensure free and fair competition and prevent "outsized profits" for ocean carriers, saying new data showed companies in that sector made nine times more in profits in the third quarter compared to last year.

(Reporting by Alexandra Alper and Andrea Shalal; Editing by Heather Timmons and Paul Simao)

Источник: https://www.saltwire.com/nova-scotia/business/biden-to-tout-inflation-control-efforts-release-of-oil-reserves-100661801/

Why do Banks Pay Interest?

And how does savings account interest work?




This site is for educational purposes. The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the availability or suitability of any Capital One product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

  1. Pritchard, J. “What Is Interest?” (November 2, 2018). Retrieved March 10, 2019, from: https://www.thebalance.com/what-is-interest-315436
     

  2. Grant, M. and T. Segal “APR and APY: Why Your Bank Hopes You Can't Tell the Difference” (February 16, 2019). Retrieved March 10, 2019, from: https://www.investopedia.com/personal-finance/apr-apy-bank-hopes-cant-tell-difference/
     

  3. Plaehn, T. “How Does a Simple Interest Car Loan Work?” (n.d.). Retrieved March 10, 2019, from: https://budgeting.thenest.com/simple-interest-car-loan-work-26087.html
     

  4. Kagan, J. “Compound Interest” (February 9, 2019). Retrieved March 10, 2019, from: https://www.investopedia.com/terms/c/compoundinterest.asp
     

  5. “Simple Interest Calculator,” financial-calculators. Retrieved March 10, 2019, from: https://financial-calculators.com/simple-interest-calculator
     

  6. “Compound Interest Calculator,” financial-calculators. Retrieved March 10, 2019, from: https://financial-calculators.com/compound-interest-calculator
     

  7. Kopp, C. “How Interest Rates Work on Savings Accounts” (February 25, 2019). Retrieved March 10, 2019, from: https://www.investopedia.com/articles/personal-finance/062315/how-interest-rates-work-savings-accounts.asp
     

  8. “Money Market: Certificate of Deposit (CD),” Investopedia. Retrieved March 23, 2019 from: https://www.investopedia.com/university/moneymarket/moneymarket3.asp
     

  9. Curtis, G. “The Ins and Outs of Bank Fees” (October 12, 2018). Retrieved March 10, 2019, from: https://www.investopedia.com/articles/pf/07/bank_fees.asp
     

  10. Porter, T. “Compounding Interest Daily vs. Monthly: What’s Better for Your Savings?” (July 20,2018). Retrieved April 23, 2019, from: https://www.mybanktracker.com/savings/faq/compounding-interest-daily-vs-monthly-275679

Источник: https://www.capitalone.com/bank/money-management/banking-basics/how-does-savings-interest-work/

High Interest Savings Account (HISA)

Your High Interest Savings Account (HISA) is designed for those people who have funds to stash away yet still have the peace of mind knowing they can have access to those funds at any time. Your HISA can be also used under a Tax-Free Savings Account (TFSA).

While you have access to your funds and can perform online transfers free of charge, the HISA and TFSA HISA are not designed to be transactional accounts and, therefore, do carry a $5.00 withdrawal/transfer-out charge.


Considering making the switch to Valley Credit Union? It's never been easier»




Valley Credit Union is a member of the Nova Scotia Credit Union Deposit Insurance Corporation (CUDIC), which at $250,000, provides the highest deposit insurance protection in Nova Scotia. In a planned credit union portfolio, you are insured up to $250,000 on a range of accounts.

 

Источник: https://www.valleycreditunion.com/Home/ProductsAndServices/YourMoney/Savings/HighInterestSavingsAccount/

Nova Scotia

Credit Unions in Nova Scotia Through the Years

Credit unions have been a reliable part of Canada’s economic community for more than 100 years. Beginning as simple savings and loans organizations, they grew to a network of full service financial institutions providing easy access to flexible products and professional financial services online or in person. Canada’s credit union system currently consists of almost 1,059 individual credit unions and caisses populaires; Canada also boasts the world’s highest per capita membership.

Proud to First

Credit unions are not “branches” subject to centralized direction. They are independent, autonomous institutions accountable only to their customer-owners, and so they are able to respond quickly and effectively to their needs. As a result, credit unions are innovators in the financial services industry. Credit union firsts that are now industry standards include ATMs, variable rate mortgages, equity-linked GICs, home equity lines of credit and PC-based home banking. These, and many other progressive services, were developed by credit unions to meet unique customer-owner needs.

Community Involvement

The depth and breadth of engagement with community involvement is a hallmark of credit unions. Credit unions exist to serve their particular jurisdictions, so community economic development initiatives abound. These initiatives include community loan funds, community partnerships and special programs to assist the disadvantaged. During periods of economic difficulty, many credit unions create flexible loan repayment options and adopt sensitive approaches to accommodate specific needs.

Small Business’s Best Solution

This characteristic also makes credit unions ideally suited to serve the needs of the small business owner. According to the Canadian Federation of Independent Business’ Banking Matters published in November 2007, with a combined total of 22 per cent, credit unions and caisses populaires have the largest share of the small business market in Canada.

Committed to Member Education

The importance of education of customer-owners, staff and volunteers is another hallmark of credit unions. Perhaps nowhere was this better understood than in eastern Nova Scotia during the depression of the 1930s. Mortgaged to the local merchants and loan sharks – fishermen, farmers and miners needed a source of manageable credit and education on how to use it wisely. After years of perseverance, the dream to bring education to the community, rather than serving only the affluent who could afford to come to the university, was realized. St. Francis Xavier University in Antigonish organized an extension department whose mission was to bring education to the community. The department became the prime mover in the cooperative movement in eastern Canada.

From humble beginnings in church basements and kitchens, credit unions of Nova Scotia now provide careers to more than 900 citizens. In Nova Scotia, 31 credit unions provide 82 locations and 80 ATMS to customer-owners to access services. In 30 provincial communities the credit union is the only full service financial institution. Over the past 20 years, these credit unions have doubled in size several times over. Professional, modern credit union premises stand proudly in high profile locations throughout the province, and well trained professionals provide quality service that consistently rates higher than competitors.

In the Beginning…

The Nova Scotia credit unions and Credit Union Central of Nova Scotia’s story begins nine years before its founding when, in 1925, a group of farmers met and passed a resolution to urge the government to create credit union legislation. In 1931, the credit union movement held its first known credit union rally among lobster fisherman. In 1932, legislation was passed with Filene Credit Union being the first to organize and Reserve Mines Credit Union obtaining the first credit union charter from the Nova Scotia government. In 1934 the first meeting of Nova Scotia credit unions was held in Sydney.

Founders of the Credit Union System in Nova Scotia

1930s – Brother Can You Spare a Dime?

The first known rally of the Credit Union Movement was held in Little Dover in 1931, assembled by Roy F. Bergengren and Father J.J. Tompkins (“Father Jimmy”). This new idea of cooperative credit caught on, spreading rapidly from seaport to village and outpost throughout the province.

By the time the first Nova Scotia credit union opened its doors in 1932, the province was entrenched in the Great Depression.

This era spawned new protection for workers – including unemployment insurance and social welfare – as well as growth of the credit union movement. Offering local self-determination, people joined together, pooled meager savings and borrowed from the common pool. Credit unions came through the Depression with increasing numbers.

1934 First meeting of Nova Scotia credit unions is held December 16 at Lyceum Centre in Sydney. It is from this date that we celebrate the founding of the Credit Union Central of Nova Scotia.

  • Credit unions: 14
  • Customer-owners: 3,124
  • Assets: $100,000

1936 The original “Little Man Under the Umbrella,” designed in 1923, is copyrighted. It symbolized the “every man” shielded from financial hardship by the umbrella of the credit unions.

1937 As early as 1937, the directors of the Nova Scotia Credit Union League (the League) considered the possibility of patronage rebates to member credit unions and standardized lending forms for all credit unions. (The League was the precursor to Credit Union Central of Nova Scotia.)

1938 The Nova Scotia government legislatively incorporated the Nova Scotia Credit Union League and the League began acting as a clearing house for credit union funds.

1939 Newfoundland and Labrador enacted its own credit union legislation.

1940s – We’ll Meet Again

The 40s were an era of conflict. The early years saw Nova Scotia and the rest of Canada drawn into the Second World War. The shift in workforce, as able-bodied men were shipped overseas, brought women to occupy new positions in the workplace while maintaining households. During this time, credit union loan policy supported the war effort with loans to customer-owners for the purchase of War Bonds.

1940 Central began granting mortgages to credit union members.

1943 First all-Canadian credit union convention

1947 Convention delegates pass resolution approving chequing accounts (implemented in 1950)

  • Customer-owners: 36,000
  • Assets: $3,200,000

1950s – All I Have To Do Is Dream

Nova Scotia credit unions continued to grow through the 50s, providing more services for a growing membership. By mid-era, there were more than 200 credit unions in Nova Scotia and over 52,000 customer-owners. Sustained membership campaigns educated tomorrow’s leaders on the pioneering philosophy that a credit union was not just another financial institution – that their job was not just to supply credit but to provide “educative credit.”

By the end of this era, credit union growth had levelled off. A goal was set to increase membership to about 70,000, or 10 per cent of the Nova Scotian population.

1952 League headquarters moves from St. Francis Xavier campus to Main Street, Antigonish – a site chosen almost unanimously by credit unions; the building is dedicated in September 1952.

1958 25th anniversary of the Credit Union Movement in Nova Scotia.

Dominion Steel and Coal Corporation (DOSCO) becomes the first credit union to reach the $1 million mark in assets.

1959

  • Customer-owners: 59,993
  • Assets: $14,111,000

1960s – The Times They Are A-Changin’

Education became the focus in the early part of this era, and the Atlantic Regional Credit Union School was developed for credit union managers, staff and volunteers. The goal was to rekindle the founding inspiration of the Antigonish Movement.

By the mid-60s, many smaller rural credit unions became full-time. Canada’s Centennial Year brought with it increased competition. Banks were offering higher interest rates: revision to the Bank Act gave them more freedom to advertise, and marketing played an increasing role in financial services.

1963 US President John F. Kennedy marks International Credit Union Day with the signing of a federal Credit Union Bill.

1966 The familiar Hands and Globe logo is introduced as the new credit union symbol

1967

  • Members: 93,133
  • Assets: $36,731,000

1968 Under a special act of Canadian Parliament, Nova Scotia credit unions and Central (then known as League) incorporated League Savings and Mortgage Company to provide mortgages for customer-owners.

1970s – We Are The World

Credit union growth boomed again in the early 70s. Their national presence was strong and unified as they rallied successfully to prevent unfair taxation of credit unions.

The explosion of knowledge and technology in the 70s brought rapid and unsettling change. Economic conditions deteriorated substantially during the first part of the era; Nova Scotians faced industrial closures and unemployment ran high.

In response to an unstable economy, spiraling inflation and record high interest rates, Nova Scotia credit unions held tight to their traditional values and became more aware of the critical role they played in the local economy.

1971 Opening of the current Credit Union Central building on Lady Hammond Road, Halifax. The move to the Province’s capital, Halifax, and the erection of a new building made a strong statement to the public – credit unions are here to stay and growing stronger.

1974 Creation of League Data to provide credit unions with information services, total solutions and data support services.

1975 Credit unions took their accounting and data management online for the first time, starting with Dartmouth Community, followed by Greenwood in early 1976.

  • Customer-owners: 132,595
  • Assets: $123,666,000

1980s and 90s – Simply The Best

Nova Scotia’s credit unions grew steadily between 1938 and 1969, from a membership of 12,000 to 97,000. The transition years of the 70s and early 80s saw a refocusing of the credit union movement.

By the 90s, with the growth in science, technology and communications, economics switched from commercial-based to commodity-based interests. This new economy forced credit unions to look at their operations and expand services to meet changing lifestyle needs of customer-owners.

1989 League Savings opens office in Moncton, New Brunswick.

1993

  • Credit unions: 71
  • Members: 171,033
  • Assets: $630,147,000

1994 Credit unions lead the introduction of ATMs in Nova Scotia.

1998 MemberDirect online banking introduced.

Central assists with the first-ever bank branch purchase in the province.

1999 Nova Scotia Credit Unions Charitable Foundation is introduced to enhance our system’s charitable efforts.

A New Century Dawns

Today, one in five Nova Scotians belongs to a credit union. The 21st century brought demands for credit unions to grow in new ways. Through amalgamation, larger credit unions were created, with the ability to offer a full range of financial services.

Amalgamation wasn’t isolated to Nova Scotia, however, as the trend nationally was toward consolidation. As credit unions across Canada continued to merge, talks began regionally around creating a single central for the Atlantic region.

In addition, assets hit new highs. Adding to this growth was the addition of Newfoundland and Labrador credit unions as shareholders of Credit Union Central of Nova Scotia.

2000 Nova Scotia credit unions returned more than $1.1 million to members in the form of common share dividends and patronage rebates simply for doing business with them.

2001 Newfoundland and Labrador credit unions became shareholders in Credit Union Central of Nova Scotia.

System assets exceed $1 billion for the first time.

2002 Credit unions in all Atlantic provinces embarked on a new branding strategy, focusing on the competitive advantage of our professional network.

2004 37 credit unions serving 85 communities in Nova Scotia; 11 credit unions serving 37 communities in Newfoundland and Labrador

2005 The Small Business Financing Program, a joint initiative of the Nova Scotia Co-operative Council, Credit Union Central of Nova Scotia and the Department of Economic and Rural Development, is introduced. Since its inception, 1,347 jobs have been created and 2,335 jobs have been maintained.

2007 Discussions began on creation of a regional Central for all four Atlantic provinces.

2009 Credit unions of Nova Scotia and Newfoundland and Labrador unanimously agree to join credit unions in New Brunswick and Prince Edward Island in forming an Atlantic Central.

The Immigrant Small Business Loan Program, a joint initiative of the Nova Scotia Co-operative Council, Credit Union Central of Nova Scotia, local credit unions, the Department of Economic and Rural Development and the Office of Immigration, is introduced.

A $33,000 donation from Nova Scotia credit unions pushes the system’s total donations to the IWK Foundation to more than $1 million; credit unions of Nova Scotia receive the “Thanks a Million” recognition on-air during the annual telethon.

  • Credit unions: 42
  • Members: 208,551
  • Assets: $1.8 billion

2011 Credit union centrals of PEI, NB and NS join together in a business combination to form Atlantic Central with the strength of 62 credit unions and 340,000 members.

Источник: https://atlanticcreditunions.ca/about-us/history/nova-scotia/
the-best-high-interest-savings-accounts-in-canada.img

Generally savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer.

However, when shopping for an account, there’s more to consider than just the interest. You can make an informed decision by using the finder tool to compare the fees and features of several different options available. But do scroll down to read our seven editors’ picks for the best high-interest savings accounts (HISA) in Canada.

These are rates offered by Ratehub partners. You can find information about additional product options below.

You can compare high-interest rates in the table above or input your estimated account balance to compare the growth between HISAs, tax-free savings accounts, registered retirement savings plans and youth savings accounts.


Our pick for the best high-interest savings accounts in Canada for 2021

 


Best high-interest savings account rate: Saven Financial High Interest Savings Account*

This HISA may sneak under the radar, but once you see the rate you will be impressed. This online-only financial institution hits in with a strong interest rate on its HISA offering, along with no minimum balance requirements and free transfers. Saven is a division of FirstOntario Credit Union, a financial institution with roots back to 1939, and which currently has more than 126,000 member clients. Note, you will need to invest at least $25 to become a member of FirstOntario.

  • Promotional rate: None
  • Interest rate: 1.35%
  • Minimum balance: None
  • Fees: None, except for a $25 cost to become a member of FirstOntario
  • Other restrictions: Only available to residents of Ontario

Also consider: Motive Savvy Savings Account

Motive Financial, the online banking division of Canadian Western Bank, offers the highest regular interest rate on this list. As such, your eligible deposits are held at Canadian Western Bank, and protected by the Canada Deposit Insurance Corporation (CDIC; see details below). There isn’t a monthly fee, and account holders get two free monthly withdrawals. But additional transactions will cost you.

  • Promotional Rate: None
  • Interest Rate: 1.10%
  • Minimum balance: None
  • Free transactions per month: 2 free monthly withdrawals ($5 charged per additional transaction)
  • Interac e-Transfer fee: $1 per outgoing transfer (no fee to receive)
  • Fees for extras: $1.50 charged per withdrawal though non-exchange ATMs
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: Not available to residents of Quebec

Best for interest rates and no service fees: EQ Bank Savings Plus Account*

EQ Bank is owned by Equitable Bank, a Canadian institution in business since 1970. Another in the burgeoning online space, EQ Bank offers great returns on their Savings Plus account. There is no fee for the account and no minimum balance. All services, including Interac e-Transfer, are free.

  • Promotional Rate: None
  • Interest Rate: 1.25%

EQ Bank Savings Plus Account*Get more details*

  • Minimum balance: None
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: Free
  • Fees for extras: None
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: There’s a maximum balance of $200,000 per customer; paper statements are not available

Best regular interest rate at a credit union: Maxa Financial High-Interest Savings Account

Maxa is a division of Westoba Credit Union, located in Manitoba. But its accounts are open to all Canadians, and it offers an impressive interest rate on savings. There’s no fee, but account holders can expect to pay service charges for many transactions.

  • Promotional Rate: None
  • Interest Rate: 1.00%
  • Minimum balance: missing info
  • Free transactions per month: First debit of each month free
  • Interac e-Transfer fee: $2 per transfer domestically; $5 per transfer internationally
  • Fees for extras: $1.50 per debit except on the first of each month
  • CDIC insured: No, but all deposits guaranteed by the Deposit Guarantee Corporation of Manitoba, with no dollar-amount limit
  • Other restrictions: Online interface is dated

Best eSavings account: Neo High-Interest Savings Account

The Neo High-Interest Savings Account is a no-fee hybrid account that lets you spend and save—and earn cash back rewards—all in one place. Clients earn 1.30% in interest on every $1 held in the account, and can access their money from an app on their phone, making bill payments, purchases, Interace-Transfer transactions and more simple and seamless. 

 

  • Promotional Rate: None
  • Interest rate: 1.30%
  • Minimum balance: None 
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: $0
  • Fees for extras: $5.00 for each printed document 
  • CDIC insured: Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor
  • Other restrictions: Maximum balance per customer is $200,000; not available to residents of Quebec

Best regular interest rate in a hybrid account: Wealthsimple Cash*

Wealthsimple Cash* was launched in January 2020 by the Canadian online financial services provider Wealthsimple. Joining the fintech’s original robo-advisor offering and its more recently added discount brokerage Wealthsimple Trade, Wealthsimple Cash is a hybrid chequing and savings account. Unlike many of the big banks, this institution offers a high regular interest rate. Plus, as with a good chequing account, this one gives you unlimited transactions with zero fees. From the account, you can make no-fee bill payments and Interac e-Transfer transactions. If you have a Wealthsimple investment account, such as a TFSA or RRSP, you can contribute to them easily using funds from your savings account.

  • Promotional Rate: None
  • Interest Rate: 0.50%
  • Minimum balance: $1
  • Free transactions per month: unlimited
  • Interac e-Transfer fee: free
  • Fees for extras: free
  • CDIC insured: Yes, as of January 1, 2021
  • Other restrictions: none
  • Open a Wealthsimple Cash account now*

Best promotional rate: Tangerine Savings Account

The Tangerine’s regular savings account is really flexible. It doesn’t require a minimum balance, and there are no fees or service charges. The entire Tangerine banking experience is simple and friendly, and their savings offerings are the same. Account holders can set up an Automated Savings Program online to help plan and meet savings goals.

  • Promotional Rate: 2.25% for the first 150 days
  • Interest Rate: 0.10%
  • Minimum balance: None
  • Free transactions per month: Unlimited; free unlimited deposits and withdrawals at Tangerine or Scotiabank ABM Network bank machines in Canada; no surcharge or access fees on withdrawals from Global ATM Alliance machines internationally
  • Interac e-Transfer fee: Free
  • Fees for extras: None; no cost for paper statement, if desired (sent quarterly)
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: None

Best tiered interest savings account: Scotiabank MomentumPlus Savings Account

With tiered earnings on interest starting, this product acts like a GIC, giving account holders the opportunity to save more just by leaving their money alone—but with the freedom to make withdrawals if you need to. Provided no debit transactions have taken place during that time; deposits stashed for longer can earn extra interest based on the following calculations:

0.05% +

  • 0.15% after 90 days
  • 0.25% after 180 days
  • 0.35% after 270 days
  • 0.45% after 360 days

Plus, if you also have an Ultimate Package account with Scotiabank, your earn rate will be 0.10% for a limited time. The account is no-fee and self-service transfers are unlimited.

  • Minimum balance: None
  • Fees for extras: $5 per debit transaction that’s not self-service
  • Free transactions per month: Unlimited for self-service transfers
  • Interac e-Transfer fee: Free
  • CDIC insured: Eligible if in Canadian currency with a term of 5 years or less and payable in Canada
  • Other restrictions:  No paper statement available

Also Consider:

LBC Digital High-Interest Savings Account

Since 2003, Laurentian Bank has been available only in Quebec, but with the recent launch of a new digital offering at LBCDigital.ca, the institution is tempting clients from across the country. The headline news here is the high-interest rate and the fact the account has no minimum balance and no monthly fees, easily topping the best rates of most financial institutions on GICs, which lock in your money for a specified period of time. With the LBC Digital High-Interest Savings Account, you can access funds whenever you like, and frequently used services including electronic fund transfers, pre-authorized deposits, and transfers between LBC Digital accounts are included. This last is important as it means you can move your money to an LBCDigital.ca chequing account, from which you can make unlimited free Interac e-Transfer transactions.

  • Promotional Rate: None
  • Interest Rate: 1.15% on deposits up to $500,000; rate drops to 0.50% on deposits over $500,000
  • Minimum balance: None
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: Free
  • Fees for extras: None
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: Non-sufficient funds (NSF), returned items and overdrawn accounts are subject to fees, and if you close the account within 90 days there’s a $25 penalty

Didn’t find the perfect savings account?

If none of our editors’ picks sound like the right HISA for your exact financial needs, then head to our Savings Account Finder tool to compare the best HISAs in Canada from most Canadian financial institutions side by side.


Compare the Best Savings Accounts in Canada >


What is a high-interest savings account?

A HISA is a savings account that pays a better rate of interest than standard savings accounts. HISAs are offered widely by a variety of banks, credit unions and other financial institutions.

This type of account allows you to safely and securely set aside money and earn a modest return without losing the ability to access that money anytime.

It’s also great for short or medium-term savings that want to be able to withdraw from than later. People will often use a HISA to save for big costs, like a wedding, the down payments on a home, a vacation or for an emergency fund. HISAs are also smart places to stash some money during times of uncertainty or during economic downturns.

 

 


How does a high-interest savings account work?

The greatest appeal of HISAs is that they are a safe and secure place for savings to grow money slowly. Financial institutions that are members of the Canada Deposit Insurance Corporation (CDIC) insure savings of up to $100,000, while credit unions are insured provincially and usually cover the full deposit, with no limits. Money that is deposited in a HISA account generates interest by allowing the bank to access those funds to loan to others. Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 2% range at the upper end. There are usually no monthly service fees associated with savings accounts since they are intended to serve as places for people to park their money for stretches of time. However, it’s not unusual to see the number of withdrawals and transfers limited or to have a fee associated with transactions. (Read more for how CDIC protects you.)


How are high-interest savings accounts taxed?

Earnings from a HISA are taxable as income. That means any interest you earn from your savings must be declared and will be taxed at your normal rate. It is, however, possible to shelter your savings from taxes if you hold a HISA within either a TFSA or an RRSP.


What is the difference between a high-interest savings account and a regular savings account?

The main difference between a standard savings account and a HISA is the interest rate. As suggested by their name, HISAs pay a slightly higher rate than standard savings accounts, allowing savings to slowly grow. They may, however, be subject to withdrawal or transfer limits, transaction fees or minimum balance requirements. A standard savings account is a good place to keep surplus cash that you don’t need for everyday transactions (use a chequing or hybrid account for those needs). A HISA, on the other hand, is a better choice for holding savings that are geared toward a particular goal, such as paying for home renovations or university tuition. 


How to choose a high-interest savings account

Most financial institutions in Canada offer HISAs, and you will want to consider which is the best fit for your needs. First and foremost, you should consider the interest rate. Conventional wisdom states that you want to look for a rate of interest that outpaces the rate of inflation or you will wind up with less buying power than you started with. In recent years the rate of inflation has been about 2%. During recessions, however, we can expect both interest rates and inflation to decrease. 

You also want to carefully look at the HISA terms and conditions. Some may require you to keep a minimum balance, charge fees on transactions, limit withdrawals, or enforce lock-in periods. 

Look to take advantage of cash signing bonuses or higher promotional rates, but also keep in mind that the long-term interest rate is more important than a short-term introductory rate.


Savings account vs. chequing account

Chequing and savings accounts are two of the many products offered by financial institutions. While they share some similarities, there are a few differences. Generally speaking, chequing accounts are used for everyday banking transactions while savings accounts are designed to help you reach longer-term goals by offering interest on your deposits without monthly fees. As a third option, hybrid accounts are an increasingly popular choice for those seeking the perks and features of chequing and savings accounts in a single package. Let’s take a closer look.

What is a savings account?

There are different types of savings accounts, each with their own specific terms. But in general, these accounts are where you put money while working towards a financial goal. Savings accounts do not typically have monthly fees, and you are paid interest on your deposits. Depending on the type of savings account you have, you may be able to use the money in it to make everyday purchases but usually you will have to transfer the money into your chequing account first. You cannot write a cheque from a savings account.

What is a chequing account?

As the name suggests, you can write cheques against a chequing account, and you might receive your paycheque into this account as a direct deposit. While writing a physical cheque isn’t as popular as it once was, “chequing” accounts are still around. As they are used for everyday transactions, these accounts are accessible from ATMs, at tellers, online and apps. This type of account is where you store money you intend to spend on routine transactions, including Interac e-Transfer, bill payments, withdrawals, deposits, pre-authorized payments and point-of-purchase payments, like using your debit card at a store. 

The best of both worlds—the hybrid account

Hybrid bank accounts combine the interest of a savings account with the flexibility of a chequing account—all for low or no fees. Money in this kind of account earns interest but it can also be accessed for purchases, pay bills, buy money transfers, make Interac e-Transfer transactions and so on. For those who want to simplify how they bank, a hybrid account could be the solution. Note that not all banks offer hybrid accounts, so you may have to shop around.

What kind of account is my money in?

After reading the above options, you might be wondering what kind of account you have already. The easiest way to find out is to call or visit your bank. Speaking with a banking teller can clarify your current structure and give you the opportunity for help should you want to make a change or move your money. 

Other types of savings accounts

A standard HISA is a very safe and secure way to squirrel away some money and earn a small amount of interest in the meantime. For medium or long-term savings, Canadians should consider holding their HISA in one of two types of registered plans that will help mitigate the amount of tax you will owe on your interest earnings.

Tax-free savings account

TFSAs are registered with the federal government, like an RRSP. More than just a savings account, a TFSA allows you to invest up to $6,000 per year and not pay any taxes on the earnings. You are free to withdraw the money, tax-free, at any time. The savings plans available within a TSFA may have somewhat lower interest rates than some other HISAs, but could be a better choice after considering the tax savings. (You can also hold other kinds of investments inside a TFSA, such as stocks and ETFs.)

Registered retirement savings plan

An RRSP is a tax-deferred retirement savings plan, registered with the federal government, that allows Canadians to defer paying taxes on their income until after retirement.

Canadians can defer paying taxes on up to $27,230 this year and instead hold that money in a savings account (or other types of investments, including stocks, bonds and ETFs) within an RRSP where earnings will accrue tax-free as well. When you withdraw the money to use for living expenses in retirement, it’s typically taxed at a lower rate, assuming your income in retirement is lower than when you made the original contribution.

Why do the interest rates on a savings account go up and down?

The interest rates on savings accounts fluctuate, sometimes on very short notice. In 2020, for example, there were several rapid changes—mostly on a downward trend. In that case, it’s not hard to understand why. The COVID-19 pandemic threw the world’s economies into disarray, and this was reflected in interest rates. The rates offered by savings accounts are controlled by the prime rate, which is linked to the Bank of Canada’s policy rate.

In times of economic turmoil, the Bank of Canada might reduce its interest rate to stimulate the economy by making it more affordable for people to borrow money. This shift affects your interest rate. In general, the interest rates are high in a strong economy, and they are lower during downturns. Today’s prime rate is 2.45%.

Reductions in the Bank of Canada policy rate might negatively affect your savings account, but they do have benefits. You’ll get a very attractive interest rate when taking on or refinancing a mortgage, for example. The same goes for personal loans. If you’re looking for a good savings rate and can plan to set aside your savings for a certain term, you might consider moving it to a GIC. GICs offer guaranteed interest rates for a given term so needn’t worry about fluctuation.

The rates for GIC, like with many investments, go up and down with the economic environment. Right now the GIC rates are very low, despite the fact that the money is locked in. So, look at GIC rates when deciding what to do with your money. Would you want to tie up your money for the minimal payoff.

Is having a savings account really necessary?

Even when the economy is strong, the interest rates on savings accounts tend to be in the low single digits. If you compare this to real estate or stock portfolio returns, you might wonder why you should hold a savings account at all. The thing to understand is that these aren’t comparable products. They’re apples and oranges, each used for different specific reasons.

A savings account is an essential part of everyone’s personal finance portfolio. Why? They are a place to keep your money safe—and liquid!—while earning guaranteed returns. Although these returns tend to be modest, they can help your money grow steadily to combat against inflation. Having a savings account is important if you want a safe way to set aside money in case of emergencies or for an upcoming major purchase, like a car or a down payment on a house. Stocks do well in the long term, but short-terms fluctuations make them unsuitable places to store money for a purchase in the near future because you may well be forced to sell during a downturn. If you’re lucky enough to have real estate, you already know that it is anything but liquid. Savings accounts hit the sweet spot by providing interest, while your money is protected by CDIC or similar deposit insurance coverage, up to specified limits.


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What does the * mean?

If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.

Источник: https://www.moneysense.ca/save/best-high-interest-savings-accounts-canada/

Account types

TFSARegistered
Defer tax payments, compound investments, and earn tax-free income, and save for your child’s post-secondary educationSubject to annual contribution limitStocks, ETFs, Mutual Funds, Fixed Income and Options (limited strategies)CADNo feeShort to long termRSPSubject to annual contribution limit and withholding tax upon withdrawalStocks, ETFs, Mutual Funds, Fixed Income and Options (limited strategies)CAD$100 if aggregate account is less than $25K and < than 12 trades/yearLong-termRESPMaximum lifetime contribution limit of $50K per childStocks, ETFs, Mutual Funds, Fixed Income and Options (limited strategies)CAD$25 if aggregate account is less than $15K and < than 12 trades/yearShort to long termMarginNon-registered
No contribution or withdrawal limitsMinimum equity requirements applyStocks, ETFs, Mutual Funds, Fixed Income and OptionsCAD USD$25 per quarter
Low activity account admin fee and interest on borrowingShort to long termCash optimizerNoneFixed Income, Fixed Income Mutual Funds, Money Market FundsCAD USDNo FeeShort to long termCashNoneStocks, ETFs, Mutual Funds, Fixed IncomeCAD USD$25 per quarter
Low activity account admin feeShort to long term
Источник: https://www.scotiaitrade.com/en/home/learning-centre/account-types.html

Scotia high interest savings account -

Why do Banks Pay Interest?

And how does savings account interest work?




This site is for educational purposes. The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the availability or suitability of any Capital One product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional.

  1. Pritchard, J. “What Is Interest?” (November 2, 2018). Retrieved March 10, 2019, from: https://www.thebalance.com/what-is-interest-315436
     

  2. Grant, M. and T. Segal “APR and APY: Why Your Bank Hopes You Can't Tell the Difference” (February 16, 2019). Retrieved March 10, 2019, from: https://www.investopedia.com/personal-finance/apr-apy-bank-hopes-cant-tell-difference/
     

  3. Plaehn, T. “How Does a Simple Interest Car Loan Work?” (n.d.). Retrieved March 10, 2019, from: https://budgeting.thenest.com/simple-interest-car-loan-work-26087.html
     

  4. Kagan, J. “Compound Interest” (February 9, 2019). Retrieved March 10, 2019, from: https://www.investopedia.com/terms/c/compoundinterest.asp
     

  5. “Simple Interest Calculator,” financial-calculators. Retrieved March 10, 2019, from: https://financial-calculators.com/simple-interest-calculator
     

  6. “Compound Interest Calculator,” financial-calculators. Retrieved March 10, 2019, from: https://financial-calculators.com/compound-interest-calculator
     

  7. Kopp, C. “How Interest Rates Work on Savings Accounts” (February 25, 2019). Retrieved March 10, 2019, from: https://www.investopedia.com/articles/personal-finance/062315/how-interest-rates-work-savings-accounts.asp
     

  8. “Money Market: Certificate of Deposit (CD),” Investopedia. Retrieved March 23, 2019 from: https://www.investopedia.com/university/moneymarket/moneymarket3.asp
     

  9. Curtis, G. “The Ins and Outs of Bank Fees” (October 12, 2018). Retrieved March 10, 2019, from: https://www.investopedia.com/articles/pf/07/bank_fees.asp
     

  10. Porter, T. “Compounding Interest Daily vs. Monthly: What’s Better for Your Savings?” (July 20,2018). Retrieved April 23, 2019, from: https://www.mybanktracker.com/savings/faq/compounding-interest-daily-vs-monthly-275679

Источник: https://www.capitalone.com/bank/money-management/banking-basics/how-does-savings-interest-work/
the-best-high-interest-savings-accounts-in-canada.img

Generally savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest is a no-brainer.

However, when shopping for an account, there’s more to consider than just the interest. You can make an informed decision by using the finder tool to compare the fees and features of several different options available. But do scroll down to read our seven editors’ picks for the best high-interest savings accounts (HISA) in Canada.

These are rates offered by Ratehub partners. You can find information about additional product options below.

You can compare high-interest rates in the table above or input your estimated account balance to compare the growth between HISAs, tax-free savings accounts, registered retirement savings plans and youth savings accounts.


Our pick for the best high-interest savings accounts in Canada for 2021

 


Best high-interest savings account rate: Saven Financial High Interest Savings Account*

This HISA may sneak under the radar, but once you see the rate you will be impressed. This online-only financial institution hits in with a strong interest rate on its HISA offering, along with no minimum balance requirements and free transfers. Saven is a division of FirstOntario Credit Union, a financial institution with roots back to 1939, and which currently has more than 126,000 member clients. Note, you will need to invest at least $25 to become a member of FirstOntario.

  • Promotional rate: None
  • Interest rate: 1.35%
  • Minimum balance: None
  • Fees: None, except for a $25 cost to become a member of FirstOntario
  • Other restrictions: Only available to residents of Ontario

Also consider: Motive Savvy Savings Account

Motive Financial, the online banking division of Canadian Western Bank, offers the highest regular interest rate on this list. As such, your eligible deposits are held at Canadian Western Bank, and protected by the Canada Deposit Insurance Corporation (CDIC; see details below). There isn’t a monthly fee, and account holders get two free monthly withdrawals. But additional transactions will cost you.

  • Promotional Rate: None
  • Interest Rate: 1.10%
  • Minimum balance: None
  • Free transactions per month: 2 free monthly withdrawals ($5 charged per additional transaction)
  • Interac e-Transfer fee: $1 per outgoing transfer (no fee to receive)
  • Fees for extras: $1.50 charged per withdrawal though non-exchange ATMs
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: Not available to residents of Quebec

Best for interest rates and no service fees: EQ Bank Savings Plus Account*

EQ Bank is owned by Equitable Bank, a Canadian institution in business since 1970. Another in the burgeoning online space, EQ Bank offers great returns on their Savings Plus account. There is no fee for the account and no minimum balance. All services, including Interac e-Transfer, are free.

  • Promotional Rate: None
  • Interest Rate: 1.25%

EQ Bank Savings Plus Account*Get more details*

  • Minimum balance: None
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: Free
  • Fees for extras: None
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: There’s a maximum balance of $200,000 per customer; paper statements are not available

Best regular interest rate at a credit union: Maxa Financial High-Interest Savings Account

Maxa is a division of Westoba Credit Union, located in Manitoba. But its accounts are open to all Canadians, and it offers an impressive interest rate on savings. There’s no fee, but account holders can expect to pay service charges for many transactions.

  • Promotional Rate: None
  • Interest Rate: 1.00%
  • Minimum balance: missing info
  • Free transactions per month: First debit of each month free
  • Interac e-Transfer fee: $2 per transfer domestically; $5 per transfer internationally
  • Fees for extras: $1.50 per debit except on the first of each month
  • CDIC insured: No, but all deposits guaranteed by the Deposit Guarantee Corporation of Manitoba, with no dollar-amount limit
  • Other restrictions: Online interface is dated

Best eSavings account: Neo High-Interest Savings Account

The Neo High-Interest Savings Account is a no-fee hybrid account that lets you spend and save—and earn cash back rewards—all in one place. Clients earn 1.30% in interest on every $1 held in the account, and can access their money from an app on their phone, making bill payments, purchases, Interace-Transfer transactions and more simple and seamless. 

 

  • Promotional Rate: None
  • Interest rate: 1.30%
  • Minimum balance: None 
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: $0
  • Fees for extras: $5.00 for each printed document 
  • CDIC insured: Deposits held in Neo Savings accounts are combined with eligible deposits held at Concentra Bank, for up to $100,000 of deposit protection, per category, per depositor
  • Other restrictions: Maximum balance per customer is $200,000; not available to residents of Quebec

Best regular interest rate in a hybrid account: Wealthsimple Cash*

Wealthsimple Cash* was launched in January 2020 by the Canadian online financial services provider Wealthsimple. Joining the fintech’s original robo-advisor offering and its more recently added discount brokerage Wealthsimple Trade, Wealthsimple Cash is a hybrid chequing and savings account. Unlike many of the big banks, this institution offers a high regular interest rate. Plus, as with a good chequing account, this one gives you unlimited transactions with zero fees. From the account, you can make no-fee bill payments and Interac e-Transfer transactions. If you have a Wealthsimple investment account, such as a TFSA or RRSP, you can contribute to them easily using funds from your savings account.

  • Promotional Rate: None
  • Interest Rate: 0.50%
  • Minimum balance: $1
  • Free transactions per month: unlimited
  • Interac e-Transfer fee: free
  • Fees for extras: free
  • CDIC insured: Yes, as of January 1, 2021
  • Other restrictions: none
  • Open a Wealthsimple Cash account now*

Best promotional rate: Tangerine Savings Account

The Tangerine’s regular savings account is really flexible. It doesn’t require a minimum balance, and there are no fees or service charges. The entire Tangerine banking experience is simple and friendly, and their savings offerings are the same. Account holders can set up an Automated Savings Program online to help plan and meet savings goals.

  • Promotional Rate: 2.25% for the first 150 days
  • Interest Rate: 0.10%
  • Minimum balance: None
  • Free transactions per month: Unlimited; free unlimited deposits and withdrawals at Tangerine or Scotiabank ABM Network bank machines in Canada; no surcharge or access fees on withdrawals from Global ATM Alliance machines internationally
  • Interac e-Transfer fee: Free
  • Fees for extras: None; no cost for paper statement, if desired (sent quarterly)
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: None

Best tiered interest savings account: Scotiabank MomentumPlus Savings Account

With tiered earnings on interest starting, this product acts like a GIC, giving account holders the opportunity to save more just by leaving their money alone—but with the freedom to make withdrawals if you need to. Provided no debit transactions have taken place during that time; deposits stashed for longer can earn extra interest based on the following calculations:

0.05% +

  • 0.15% after 90 days
  • 0.25% after 180 days
  • 0.35% after 270 days
  • 0.45% after 360 days

Plus, if you also have an Ultimate Package account with Scotiabank, your earn rate will be 0.10% for a limited time. The account is no-fee and self-service transfers are unlimited.

  • Minimum balance: None
  • Fees for extras: $5 per debit transaction that’s not self-service
  • Free transactions per month: Unlimited for self-service transfers
  • Interac e-Transfer fee: Free
  • CDIC insured: Eligible if in Canadian currency with a term of 5 years or less and payable in Canada
  • Other restrictions:  No paper statement available

Also Consider:

LBC Digital High-Interest Savings Account

Since 2003, Laurentian Bank has been available only in Quebec, but with the recent launch of a new digital offering at LBCDigital.ca, the institution is tempting clients from across the country. The headline news here is the high-interest rate and the fact the account has no minimum balance and no monthly fees, easily topping the best rates of most financial institutions on GICs, which lock in your money for a specified period of time. With the LBC Digital High-Interest Savings Account, you can access funds whenever you like, and frequently used services including electronic fund transfers, pre-authorized deposits, and transfers between LBC Digital accounts are included. This last is important as it means you can move your money to an LBCDigital.ca chequing account, from which you can make unlimited free Interac e-Transfer transactions.

  • Promotional Rate: None
  • Interest Rate: 1.15% on deposits up to $500,000; rate drops to 0.50% on deposits over $500,000
  • Minimum balance: None
  • Free transactions per month: Unlimited
  • Interac e-Transfer fee: Free
  • Fees for extras: None
  • CDIC insured: Eligible on deposits up to $100,000 in Canadian funds that are payable in Canada and have a term of no more than 5 years
  • Other restrictions: Non-sufficient funds (NSF), returned items and overdrawn accounts are subject to fees, and if you close the account within 90 days there’s a $25 penalty

Didn’t find the perfect savings account?

If none of our editors’ picks sound like the right HISA for your exact financial needs, then head to our Savings Account Finder tool to compare the best HISAs in Canada from most Canadian financial institutions side by side.


Compare the Best Savings Accounts in Canada >


What is a high-interest savings account?

A HISA is a savings account that pays a better rate of interest than standard savings accounts. HISAs are offered widely by a variety of banks, credit unions and other financial institutions.

This type of account allows you to safely and securely set aside money and earn a modest return without losing the ability to access that money anytime.

It’s also great for short or medium-term savings that want to be able to withdraw from than later. People will often use a HISA to save for big costs, like a wedding, the down payments on a home, a vacation or for an emergency fund. HISAs are also smart places to stash some money during times of uncertainty or during economic downturns.

 

 


How does a high-interest savings account work?

The greatest appeal of HISAs is that they are a safe and secure place for savings to grow money slowly. Financial institutions that are members of the Canada Deposit Insurance Corporation (CDIC) insure savings of up to $100,000, while credit unions are insured provincially and usually cover the full deposit, with no limits. Money that is deposited in a HISA account generates interest by allowing the bank to access those funds to loan to others. Interest rates offered by HISA accounts typically vary between rates as low 0.5% and to the 2% range at the upper end. There are usually no monthly service fees associated with savings accounts since they are intended to serve as places for people to park their money for stretches of time. However, it’s not unusual to see the number of withdrawals and transfers limited or to have a fee associated with transactions. (Read more for how CDIC protects you.)


How are high-interest savings accounts taxed?

Earnings from a HISA are taxable as income. That means any interest you earn from your savings must be declared and will be taxed at your normal rate. It is, however, possible to shelter your savings from taxes if you hold a HISA within either a TFSA or an RRSP.


What is the difference between a high-interest savings account and a regular savings account?

The main difference between a standard savings account and a HISA is the interest rate. As suggested by their name, HISAs pay a slightly higher rate than standard savings accounts, allowing savings to slowly grow. They may, however, be subject to withdrawal or transfer limits, transaction fees or minimum balance requirements. A standard savings account is a good place to keep surplus cash that you don’t need for everyday transactions (use a chequing or hybrid account for those needs). A HISA, on the other hand, is a better choice for holding savings that are geared toward a particular goal, such as paying for home renovations or university tuition. 


How to choose a high-interest savings account

Most financial institutions in Canada offer HISAs, and you will want to consider which is the best fit for your needs. First and foremost, you should consider the interest rate. Conventional wisdom states that you want to look for a rate of interest that outpaces the rate of inflation or you will wind up with less buying power than you started with. In recent years the rate of inflation has been about 2%. During recessions, however, we can expect both interest rates and inflation to decrease. 

You also want to carefully look at the HISA terms and conditions. Some may require you to keep a minimum balance, charge fees on transactions, limit withdrawals, or enforce lock-in periods. 

Look to take advantage of cash signing bonuses or higher promotional rates, but also keep in mind that the long-term interest rate is more important than a short-term introductory rate.


Savings account vs. chequing account

Chequing and savings accounts are two of the many products offered by financial institutions. While they share some similarities, there are a few differences. Generally speaking, chequing accounts are used for everyday banking transactions while savings accounts are designed to help you reach longer-term goals by offering interest on your deposits without monthly fees. As a third option, hybrid accounts are an increasingly popular choice for those seeking the perks and features of chequing and savings accounts in a single package. Let’s take a closer look.

What is a savings account?

There are different types of savings accounts, each with their own specific terms. But in general, these accounts are where you put money while working towards a financial goal. Savings accounts do not typically have monthly fees, and you are paid interest on your deposits. Depending on the type of savings account you have, you may be able to use the money in it to make everyday purchases but usually you will have to transfer the money into your chequing account first. You cannot write a cheque from a savings account.

What is a chequing account?

As the name suggests, you can write cheques against a chequing account, and you might receive your paycheque into this account as a direct deposit. While writing a physical cheque isn’t as popular as it once was, “chequing” accounts are still around. As they are used for everyday transactions, these accounts are accessible from ATMs, at tellers, online and apps. This type of account is where you store money you intend to spend on routine transactions, including Interac e-Transfer, bill payments, withdrawals, deposits, pre-authorized payments and point-of-purchase payments, like using your debit card at a store. 

The best of both worlds—the hybrid account

Hybrid bank accounts combine the interest of a savings account with the flexibility of a chequing account—all for low or no fees. Money in this kind of account earns interest but it can also be accessed for purchases, pay bills, buy money transfers, make Interac e-Transfer transactions and so on. For those who want to simplify how they bank, a hybrid account could be the solution. Note that not all banks offer hybrid accounts, so you may have to shop around.

What kind of account is my money in?

After reading the above options, you might be wondering what kind of account you have already. The easiest way to find out is to call or visit your bank. Speaking with a banking teller can clarify your current structure and give you the opportunity for help should you want to make a change or move your money. 

Other types of savings accounts

A standard HISA is a very safe and secure way to squirrel away some money and earn a small amount of interest in the meantime. For medium or long-term savings, Canadians should consider holding their HISA in one of two types of registered plans that will help mitigate the amount of tax you will owe on your interest earnings.

Tax-free savings account

TFSAs are registered with the federal government, like an RRSP. More than just a savings account, a TFSA allows you to invest up to $6,000 per year and not pay any taxes on the earnings. You are free to withdraw the money, tax-free, at any time. The savings plans available within a TSFA may have somewhat lower interest rates than some other HISAs, but could be a better choice after considering the tax savings. (You can also hold other kinds of investments inside a TFSA, such as stocks and ETFs.)

Registered retirement savings plan

An RRSP is a tax-deferred retirement savings plan, registered with the federal government, that allows Canadians to defer paying taxes on their income until after retirement.

Canadians can defer paying taxes on up to $27,230 this year and instead hold that money in a savings account (or other types of investments, including stocks, bonds and ETFs) within an RRSP where earnings will accrue tax-free as well. When you withdraw the money to use for living expenses in retirement, it’s typically taxed at a lower rate, assuming your income in retirement is lower than when you made the original contribution.

Why do the interest rates on a savings account go up and down?

The interest rates on savings accounts fluctuate, sometimes on very short notice. In 2020, for example, there were several rapid changes—mostly on a downward trend. In that case, it’s not hard to understand why. The COVID-19 pandemic threw the world’s economies into disarray, and this was reflected in interest rates. The rates offered by savings accounts are controlled by the prime rate, which is linked to the Bank of Canada’s policy rate.

In times of economic turmoil, the Bank of Canada might reduce its interest rate to stimulate the economy by making it more affordable for people to borrow money. This shift affects your interest rate. In general, the interest rates are high in a strong economy, and they are lower during downturns. Today’s prime rate is 2.45%.

Reductions in the Bank of Canada policy rate might negatively affect your savings account, but they do have benefits. You’ll get a very attractive interest rate when taking on or refinancing a mortgage, for example. The same goes for personal loans. If you’re looking for a good savings rate and can plan to set aside your savings for a certain term, you might consider moving it to a GIC. GICs offer guaranteed interest rates for a given term so needn’t worry about fluctuation.

The rates for GIC, like with many investments, go up and down with the economic environment. Right now the GIC rates are very low, despite the fact that the money is locked in. So, look at GIC rates when deciding what to do with your money. Would you want to tie up your money for the minimal payoff.

Is having a savings account really necessary?

Even when the economy is strong, the interest rates on savings accounts tend to be in the low single digits. If you compare this to real estate or stock portfolio returns, you might wonder why you should hold a savings account at all. The thing to understand is that these aren’t comparable products. They’re apples and oranges, each used for different specific reasons.

A savings account is an essential part of everyone’s personal finance portfolio. Why? They are a place to keep your money safe—and liquid!—while earning guaranteed returns. Although these returns tend to be modest, they can help your money grow steadily to combat against inflation. Having a savings account is important if you want a safe way to set aside money in case of emergencies or for an upcoming major purchase, like a car or a down payment on a house. Stocks do well in the long term, but short-terms fluctuations make them unsuitable places to store money for a purchase in the near future because you may well be forced to sell during a downturn. If you’re lucky enough to have real estate, you already know that it is anything but liquid. Savings accounts hit the sweet spot by providing interest, while your money is protected by CDIC or similar deposit insurance coverage, up to specified limits.


Related articles


If a link has an asterisk (*) at the end of it, that means it’s an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It’s important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it’s included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.

What does the * mean?

If a link has an asterisk (*) at the end of it, that means it's an affiliate link and can sometimes result in a payment to MoneySense (owned by Ratehub Inc.) which helps our website stay free to our users. It's important to note that our editorial content will never be impacted by these links. We are committed to looking at all available products in the market, and where a product ranks in our article or whether or not it's included in the first place is never driven by compensation. For more details read our MoneySense Monetization policy.

Источник: https://www.moneysense.ca/save/best-high-interest-savings-accounts-canada/

Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted.

Advertiser Disclosure

We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

Banks often pay low interest rates on savings accounts. In February 2020, the average annual percentage yield, or APY,  for U.S. savings accounts was just 0.09%.

One reason savings account rates are so low is that financial institutions profit when the rate on the money they lend out is higher than the rate they pay people who deposit money into savings.

When rates on loans are low, banks like to keep savings account rates even lower to continue making money on them.

Another reason some banks may not need to offer higher interest rates is that they’ve already won a large share of customers and aren’t competing aggressively with other banks for new business, according to research by Itmar Drechsler, a professor of finance at the University of Pennsylvania.

We’ll review places to look for higher interest rates as well as alternatives to savings accounts.

Earn a high-yield savings rate with Credit Karma Money™ Save Start Saving

Where can I find a higher rate on a savings account?

Although interest rates on savings accounts are often low, you can find higher rates if you shop around. Online banks are a good place to start.

Look for an online savings account, such as Credit Karma Savings, that’s a high-yield savings account. These bank accounts could have interest rates above the national average. Over time, that can get you greater dividends for your money.

Take this example, where you deposit $500 for a year.

Type of savings accountInterest rateBalance after one year (compounded monthly)

High-yield savings account

1.8%

$509.07

Traditional savings account

0.09%

$500.45


For security and peace of mind, make sure your savings account is protected at an institution that’s FDIC insured.

How are interest rates set on savings accounts?

Although financial institutions set their own interest rates, the Federal Reserve can influence rates by buying and selling financial products like bonds. This affects the federal funds rate, which is the rate banks charge other banks on overnight loans. The federal funds rate trickles down to affect other interest rates, including your savings account rates and the rates you pay on auto loans, credit cards and mortgages.

As of October 2019, the federal funds rate was 1.83%. Compare that to November 2000, when it was 6.51%.

Alternatives to savings accounts

You may be able to earn higher returns if you open different types of accounts to grow your savings. Here are some alternatives to savings accounts.

CDs

A certificate of deposit, or CD, is a type of bank account that holds your deposit for a set term, which could be six months, a year or longer. CDs pay either fixed or variable interest, and you receive the interest plus the amount you deposited when the CD’s term is up. The downside is you may pay a penalty for early withdrawal.

Interest rates on CDs are usually higher than on conventional savings accounts.

You can choose to open one CD and wait until it matures to access all your funds at once, or you can open several CDs with different terms using a CD ladder strategy and access your money at regular intervals as the individual CDs mature.

Money market accounts

A money market account is another type of deposit account at a bank or credit union. You may need to make a minimum deposit to open a money market account. You can make withdrawals or, like a checking account, payments from your account — but typically not more than six times a month.

The interest rate on money market accounts is usually higher than on conventional savings accounts.

Keep in mind that money market funds, or money market mutual accounts, are not the same as money market deposit accounts. Money market funds are investments that are not insured by the FDIC.

Mutual funds and ETFs

Investors form a mutual fund by combining their money and using it to buy investments like stocks and bonds. You can buy shares in a mutual fund to own a portion of the fund’s investments. You’re able to cash out of a mutual fund for a fee whenever you choose, and you receive the value of the assets you hold in the fund.

An exchange traded fund, or ETF, is similar to a mutual fund because you can buy shares in the fund and it invests in stock, bonds and other securities. But if you sell your shares in an ETF, you’ll receive the market value that those shares currently sell for rather than the value of the fund’s assets that corresponds to your shares.

Buying shares in a mutual fund or ETF can potentially result in a higher return than putting money in a savings account. But these investments are not guaranteed by the FDIC, so their value could go down. You could lose some or all of the money you invest.


What’s next?

Before choosing a savings account, research your options and think about your financial goals. Here are some questions to ask yourself.

  • What APY does the account have?
  • Is there a minimum deposit?
  • Are there any fees for opening or withdrawing funds?
  • Do I need access to a physical bank branch?
  • What level of risk am I willing to take?

For Credit Karma Savings: Banking services provided by MVB Bank, Inc., Member FDIC. 

Earn a high-yield savings rate with Credit Karma Money™ Save Start Saving

About the author: Sarah Brodsky is a freelance writer covering personal finance and economics. She has a bachelor’s degree in economics from The University of Chicago. Sarah has written for companies such as Hcareers, Impactivate and K… Read more.

Read More

Источник: https://www.creditkarma.com/savings/i/why-are-interest-rates-low-on-savings-accounts

Biden says U.S. gasoline prices will drop after release of strategic reserves

By Alexandra Alper

WASHINGTON (Reuters) - U.S. President Joe Biden on Tuesday touted his administration's international and domestic efforts to tackle inflation and high gasoline prices, promising Americans a drop in prices at the pump 'before long."

The Democratic president announced what he called the largest-ever release from the U.S. Strategic Petroleum Reserve to boost domestic supplies, in coordination with other countries. The White House is also probing possible illegal conduct by oil and gasoline companies that it says are keeping gas prices artificially high.

"I told you before that we're going to take action on these problems. That's exactly what we're doing," Biden said in remarks broadcast from the White House.

"It will take time, but before long you should see the price of gas drop where you fill up your tank, and in the longer-term we will reduce our reliance on oil as we shift to clean energy."

Biden's administration along with the Federal Reserve had described sharp spikes in inflation earlier this year as transitory, but pressure for action has grown as the price surges have continued into the fall.

The Labor Department's Bureau of Labor Statistics reported earlier this month that U.S. consumer prices in October posted their biggest annual gain in 31 years, driven by large jumps in the cost of gasoline and other goods.

Biden acknowledged the pain Americans were feeling, but said his administration was working to clear logjams in supply chains, speed up work at U.S. ports and work with retailers to ensure that store shelves were stocked with "everything from bicycles to ice skates" in time for the winter holidays.

The White House on Tuesday announced plans to release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain to cool prices after producers in the OPEC+ group repeatedly ignored calls for more crude.

Biden also took aim at companies that he said were making record profits while failing to pass savings along to consumers.

"If the gap between wholesale and retail gas prices was in line with past averages, Americans would be paying at least 25 cents less per gallon right now," he said. "Instead, companies are pocketing the difference as profit, and that's unacceptable."

Biden last week said there was mounting evidence of anti-consumer behavior by oil and gas companies that is keeping fuel prices elevated, asking the Federal Trade Commission to dig deeper into possible "illegal conduct" in the market.

White House press secretary Jen Psaki on Monday also highlighted the administration's call for the Federal Maritime Commission to ensure free and fair competition and prevent "outsized profits" for ocean carriers, saying new data showed companies in that sector made nine times more in profits in the third quarter compared to last year.

(Reporting by Alexandra Alper and Andrea Shalal; Editing by Heather Timmons and Paul Simao)

Источник: https://www.saltwire.com/nova-scotia/business/biden-to-tout-inflation-control-efforts-release-of-oil-reserves-100661801/

High Interest Savings Account (HISA)

Your High Interest Savings Account (HISA) is designed for those people who have funds to stash away yet still have the peace of mind knowing they can have access to those funds at any time. Your HISA can be also used under a Tax-Free Savings Account (TFSA).

While you have access to your funds and can perform online transfers free of charge, the HISA and TFSA HISA are not designed to be transactional accounts and, therefore, do carry a $5.00 withdrawal/transfer-out charge.


Considering making the switch to Valley Credit Union? It's never been easier»




Valley Credit Union is a member of the Nova Scotia Credit Union Deposit Insurance Corporation (CUDIC), which at $250,000, provides the highest deposit insurance protection in Nova Scotia. In a planned credit union portfolio, you are insured up to $250,000 on a range of accounts.

 

Источник: https://www.valleycreditunion.com/Home/ProductsAndServices/YourMoney/Savings/HighInterestSavingsAccount/

Account types

TFSARegistered
Defer tax payments, compound investments, and earn tax-free income, and save for your child’s post-secondary educationSubject to annual contribution limitStocks, ETFs, Mutual Funds, Fixed Income and Options (limited strategies)CADNo feeShort to long termRSPSubject to annual contribution limit and withholding tax upon withdrawalStocks, ETFs, Mutual Funds, Fixed Income and Options (limited strategies)CAD$100 if aggregate account is less than $25K and < than 12 trades/yearLong-termRESPMaximum lifetime contribution limit of $50K per childStocks, ETFs, Mutual Funds, Fixed Income and Options (limited strategies)CAD$25 if aggregate account is less than $15K and < than 12 trades/yearShort to long termMarginNon-registered
No contribution or withdrawal limitsMinimum equity requirements applyStocks, ETFs, Mutual Funds, Fixed Income and OptionsCAD USD$25 per quarter
Low activity account admin fee and interest on borrowingShort to long termCash optimizerNoneFixed Income, Fixed Income Mutual Funds, Money Market FundsCAD USDNo FeeShort to long termCashNoneStocks, ETFs, Mutual Funds, Fixed IncomeCAD USD$25 per quarter
Low activity account admin feeShort to long term
Источник: https://www.scotiaitrade.com/en/home/learning-centre/account-types.html
scotia high interest savings account

Nova Scotia

Credit Unions in Nova Scotia Through the Years

Credit unions have been a reliable part of Canada’s economic community for more than 100 years. Beginning as simple savings and loans organizations, they grew to a network of full service financial institutions providing easy access to flexible products and professional financial services online or in person. Canada’s credit union system currently consists of almost 1,059 individual credit unions and caisses populaires; Canada also boasts the world’s highest per capita membership.

Proud to First

Credit unions are not “branches” subject to centralized direction. They are independent, autonomous institutions accountable only to their customer-owners, and so they are able to respond quickly and effectively to their needs. As a result, credit unions are innovators in the financial services industry. Credit union firsts that are now industry standards include ATMs, variable rate mortgages, equity-linked GICs, home equity lines of credit and PC-based home banking. These, and many other progressive services, were developed by credit unions to meet unique customer-owner needs.

Community Involvement

The depth and breadth of engagement with community involvement is a hallmark of credit unions. Credit unions exist to serve their particular jurisdictions, so community economic development initiatives abound. These initiatives include community loan funds, community partnerships and special programs to assist the disadvantaged. During periods of economic difficulty, many credit unions create flexible loan repayment options and adopt sensitive approaches to accommodate specific needs.

Small Business’s Best Solution

This characteristic also makes credit unions ideally suited to serve the needs of the small business owner. According to the Canadian Federation of Independent Business’ Banking Matters published in November 2007, with a combined total of 22 per cent, credit unions and caisses populaires have the largest share of the small business market in Canada.

Committed to Member Education

The importance of education of customer-owners, staff and volunteers is another hallmark of credit unions. Perhaps nowhere was this better understood than in eastern Nova Scotia during the depression of the 1930s. Mortgaged to the local merchants and loan sharks – fishermen, farmers and miners needed a source of manageable credit and education on how to use it wisely. After years of perseverance, the dream to bring education to the community, rather than serving only the affluent who could afford to come to the university, was realized. St. Francis Xavier University in Antigonish organized an extension department whose mission was to bring education to the community. The department became the prime mover in the cooperative movement in eastern Canada.

From humble beginnings in church basements and kitchens, credit unions of Nova Scotia now provide careers to more than 900 citizens. In Nova Scotia, 31 credit unions provide 82 locations and 80 ATMS to customer-owners to access services. In 30 provincial communities the credit union is the only full service financial institution. Over the past 20 years, these credit unions have doubled in size several times over. Professional, modern credit union premises stand proudly in high profile locations throughout the province, and well trained professionals provide quality service that consistently groves funeral home union wv higher than competitors.

In the Beginning…

The Nova Scotia credit unions and Credit Union Central of Nova Scotia’s story begins nine years before its founding when, in 1925, a group of farmers met and passed a resolution to urge the government to create credit union legislation. In 1931, the credit union movement held its first known credit union rally among lobster fisherman. In 1932, legislation was passed with Filene Credit Union being the first to organize and Reserve Mines Credit Union obtaining the first credit union charter from the Nova Scotia government. In 1934 the first meeting of Nova Scotia credit unions was held in Sydney.

Founders of the Credit Union System in Nova Scotia

1930s – Brother Can You Spare a Dime?

The first known rally of the Credit Union Movement was held in Little Dover in 1931, assembled by Roy F. Bergengren and Father J.J. Tompkins (“Father Jimmy”). This new idea of cooperative credit caught on, spreading rapidly from seaport to village and outpost throughout the province.

By the time the first Nova Scotia credit union opened its doors in 1932, the province was entrenched in the Great Depression.

This era spawned new protection for workers – including unemployment insurance and social welfare – as well as growth of the credit union movement. Offering local self-determination, people joined together, pooled meager savings and borrowed from the common pool. Credit unions came through the Depression with increasing numbers.

1934 First meeting of Nova Scotia credit unions is held December 16 at Lyceum Centre in Sydney. It is from this date that we celebrate the founding of the Credit Union Central of Nova Scotia.

  • Credit unions: 14
  • Customer-owners: 3,124
  • Assets: $100,000

1936 The original “Little Man Under the Umbrella,” designed in 1923, is copyrighted. It symbolized the “every man” shielded from financial hardship by the umbrella of the credit unions.

1937 As early as 1937, the directors of the Nova Scotia Credit Union League (the League) considered the possibility of patronage rebates to member credit unions and standardized lending forms for all credit unions. (The League was the precursor to Credit Union Central of Nova Scotia.)

1938 The Nova Scotia government legislatively incorporated the Nova Scotia Credit Union League and the League began acting as a clearing house for credit union funds.

1939 Newfoundland and Labrador enacted its own credit union legislation.

1940s – Scotia high interest savings account Meet Again

The 40s were an era of conflict. Scotia high interest savings account early years saw Nova Scotia and the rest of Canada drawn into the Second World War. The shift in workforce, as able-bodied men were shipped overseas, brought women to occupy new positions in the workplace while maintaining households. During this time, credit union loan policy supported the war effort with loans to customer-owners for the purchase of War Bonds.

1940 Central began granting mortgages to credit union members.

1943 First all-Canadian credit union convention

1947 Convention delegates pass resolution approving chequing accounts (implemented in 1950)

  • Customer-owners: 36,000
  • Assets: $3,200,000

1950s – All I Have To Do Is Dream

Nova Scotia credit unions continued to grow through the 50s, providing more services for a growing membership. By mid-era, there were more than 200 credit unions in Nova Scotia and over 52,000 customer-owners. Sustained membership campaigns educated tomorrow’s leaders on the pioneering philosophy that a credit union was not just another financial institution – that their job was not just to supply credit but to provide “educative credit.”

By the end of this era, credit union growth had levelled off. A goal was set to increase membership to about 70,000, or 10 per cent of the Nova Scotian population.

1952 League headquarters moves from St. Francis Xavier campus to Main Street, Antigonish – a site chosen almost unanimously by credit unions; the building is dedicated in September 1952.

1958 25th anniversary of the Credit Union Movement in Nova Scotia.

Dominion Steel and Coal Corporation (DOSCO) becomes the first credit union to reach the $1 million mark in assets.

1959

  • Customer-owners: 59,993
  • Assets: $14,111,000

1960s – The Times They Are A-Changin’

Education became the focus in the early part of this era, and the Atlantic Regional Credit Union School was developed for credit union managers, staff and volunteers. The goal was to rekindle the founding inspiration of the Antigonish Movement.

By the mid-60s, many smaller rural credit unions became full-time. Canada’s Centennial Year brought with it increased competition. Banks were offering higher interest rates: revision to the Bank Act gave them more freedom to advertise, and marketing played an increasing role in financial services.

1963 US President John F. Average usaa car insurance quote marks International Credit Union Day with the signing of a federal Credit Union Bill.

1966 The familiar Hands and Globe logo is introduced as the new credit union symbol

1967

  • Members: 93,133
  • Assets: $36,731,000

1968 Under a special act of Canadian Parliament, Nova Scotia credit unions and Central (then known as League) incorporated League Savings and Mortgage Company to provide mortgages for customer-owners.

1970s – We Are The World

Credit union growth boomed again in the early 70s. Their national presence was strong and unified as they rallied successfully to prevent unfair taxation of credit unions.

The explosion of knowledge and technology in the 70s brought rapid and unsettling change. Economic conditions deteriorated substantially during the first part of the era; Nova Scotians faced industrial closures and unemployment ran high.

In response to an unstable economy, spiraling inflation and record high interest rates, Nova Scotia credit unions held tight to their traditional values and became more aware of the critical role they played in the local economy.

1971 Opening of the current Credit Union Central building on Lady Hammond Road, Halifax. The move to the Province’s capital, Halifax, and the erection of a new building made a strong statement to the public – credit unions are here to stay and growing stronger.

1974 Creation of League Data to provide credit unions with information services, total solutions and data support services.

1975 Credit unions took their accounting and data management online for the first time, starting with Dartmouth Community, followed by Greenwood in early 1976.

  • Customer-owners: 132,595
  • Assets: $123,666,000

1980s and 90s – Simply The Best

Nova Scotia’s credit unions grew steadily between 1938 and 1969, from a membership of 12,000 to 97,000. The transition years of the 70s and early 80s saw a refocusing of the credit union movement.

By the 90s, with the growth in science, technology and communications, economics switched from commercial-based to commodity-based interests. This new economy forced credit unions to look at their operations and expand services to meet changing lifestyle needs of customer-owners.

1989 League Savings opens office in Moncton, New Brunswick.

1993

  • Credit unions: 71
  • Members: 171,033
  • Assets: $630,147,000

1994 Credit unions lead the introduction of ATMs in Nova Scotia.

1998 MemberDirect online banking introduced.

Central assists with the first-ever bank branch purchase in the province.

1999 Nova Scotia Credit Unions Charitable Foundation is scotia high interest savings account to enhance our system’s charitable efforts.

A New Century Dawns

Today, one in five Nova Scotians belongs to a credit union. The 21st century brought demands for credit unions to grow in new ways. Through amalgamation, larger credit unions were created, with the ability to offer a full range of financial services.

Amalgamation wasn’t isolated to Nova Scotia, however, as the trend nationally was toward consolidation. As credit unions across Canada continued to merge, talks began regionally around creating a single central for the Atlantic region.

In addition, assets hit new highs. Adding to this growth was the addition of Newfoundland and Labrador credit unions as shareholders of Credit Union Central of Nova Scotia.

2000 Nova Scotia credit unions returned more than $1.1 million to members in the form of common share dividends and patronage rebates simply for doing business with them.

2001 Newfoundland and Labrador credit unions became shareholders in Credit 2.5 cash back credit card Central of Nova Scotia.

System assets exceed $1 billion for the first time.

2002 Credit unions in all Atlantic provinces embarked on a new branding strategy, focusing on the competitive advantage of our professional network.

2004 37 credit unions serving 85 communities in Nova Scotia; 11 credit unions serving 37 communities in Newfoundland and Labrador

2005 The Small Business Financing Program, a joint initiative of the Nova Scotia Co-operative Council, Credit Union Central of Nova Scotia and the Department of Economic and Rural Development, is introduced. Since its inception, 1,347 jobs have been created and 2,335 jobs have been maintained.

2007 Discussions began on creation of a regional Central for all four Atlantic provinces.

2009 Credit unions of Nova Scotia and Newfoundland and Labrador unanimously agree to join credit unions in New Brunswick and Prince Edward Island in forming an Atlantic Central.

The Immigrant Small Business Loan Program, a joint initiative of the Nova Scotia Co-operative Council, Credit Union Central of Nova Scotia, local credit unions, the Department of Economic and Rural Development and the Office of Immigration, is introduced.

A $33,000 donation from Nova Scotia credit unions pushes the system’s total donations to the IWK Foundation to more than $1 million; credit unions of Nova Scotia receive the “Thanks a Million” recognition on-air during the annual telethon.

  • Credit unions: 42
  • Members: 208,551
  • Assets: $1.8 billion

2011 Credit union centrals of PEI, NB and NS join together in a business combination to form Atlantic Central with the strength of 62 credit unions and 340,000 members.

Источник: https://atlanticcreditunions.ca/about-us/history/nova-scotia/

Biden says U.S. gasoline prices will drop after release of strategic reserves

By Alexandra Alper

WASHINGTON (Reuters) - U.S. President Joe Biden on Tuesday touted his administration's international and domestic efforts to tackle inflation and high gasoline prices, promising Americans a drop in prices at the pump 'before long."

The Democratic president announced what he called the largest-ever release from the U.S. Strategic Petroleum Reserve to boost domestic supplies, in coordination with other countries. The White House is also probing possible illegal conduct by oil and gasoline companies that it says are keeping gas prices artificially high.

"I told you before that we're going to take action on these problems. That's exactly what we're doing," Biden said in remarks broadcast from the White House.

"It will take time, but before long you should see the price of gas drop where you fill up your tank, and in the longer-term we will reduce our reliance on oil as we shift to clean energy."

Biden's administration along with the Federal Reserve had described sharp spikes in inflation earlier this year as transitory, but pressure for action has grown as the price surges have continued into the fall.

The Labor Department's Bureau of Labor Statistics reported earlier this month that U.S. consumer prices in October posted their biggest annual gain in 31 years, driven by large jumps in the cost of gasoline and other goods.

Biden acknowledged the pain Americans were feeling, but said his administration was working to clear logjams in supply chains, speed up work at U.S. ports and work with retailers to ensure that store shelves were stocked with "everything from bicycles to ice skates" in time for the winter holidays.

The White House on Tuesday announced plans to release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain to cool prices after producers in the OPEC+ group repeatedly ignored calls for more crude.

Biden also took aim at companies that he said were making record profits while failing to pass savings along to consumers.

"If the gap between wholesale and retail gas prices was in line with past averages, Americans would be paying at least 25 cents less per gallon right now," he said. "Instead, companies are pocketing the difference as profit, and that's unacceptable."

Biden last week said there was mounting evidence of anti-consumer behavior by oil and gas companies that is keeping fuel prices elevated, asking the Federal Trade Commission to dig deeper into possible "illegal conduct" in the market.

White House press secretary Jen Psaki on Monday also highlighted the administration's call for the Federal Maritime Commission to ensure free and fair competition and prevent "outsized profits" for ocean carriers, saying new data showed companies in that sector made nine times more in profits in the third quarter compared to last year.

(Reporting by Alexandra Alper and Andrea Shalal; Editing by Heather Timmons and Paul Simao)

Источник: https://www.saltwire.com/nova-scotia/business/biden-to-tout-inflation-control-efforts-release-of-oil-reserves-100661801/

Editorial Note: Credit Karma scotia high interest savings account compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted.

Advertiser Disclosure

We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

Banks often pay low interest rates on savings accounts. In February 2020, the average annual percentage yield, or APY,  for U.S. savings accounts was just 0.09%.

One reason savings account rates are so low is that financial institutions profit when the rate on scotia high interest savings account money they lend out is higher than the rate they pay people who deposit money into savings.

When rates on loans are low, banks like to keep savings account rates even lower to continue making money on them.

Another reason some banks may not need to offer higher interest rates is that they’ve already won a large share of customers and aren’t competing aggressively with other banks for new business, according to research by Itmar Drechsler, a professor of finance at the University of Pennsylvania.

We’ll review places to look for higher interest rates as well as alternatives to savings accounts.

Earn a high-yield savings rate with Credit Karma Money™ Save Start Saving

Where can I find a higher rate on a savings account?

Although interest rates on savings accounts are often low, you can find higher rates if you shop around. Online banks are a good place to start.

Look for an online savings account, such as Credit Karma Savings, that’s a high-yield savings account. These bank accounts could have interest rates above the national average. Over time, that can get you greater dividends for your money.

Take this example, where you deposit $500 for a year.

Type of savings accountInterest rateBalance after one year (compounded monthly)

High-yield savings account

1.8%

$509.07

Traditional savings account

0.09%

$500.45


For security and peace of mind, make sure your savings account is protected at an institution that’s FDIC insured.

How are interest rates set on savings accounts?

Although financial institutions set their own interest rates, the Federal Reserve can influence rates by buying and selling financial products like bonds. This affects the federal funds rate, which is the rate banks charge other banks on overnight loans. The federal funds rate trickles down to affect other interest rates, including your savings account rates and the rates you pay on auto loans, credit cards and mortgages.

As of October 2019, the federal funds rate was 1.83%. Compare that to November 2000, when it was 6.51%.

Alternatives to savings accounts

You may be able to earn higher returns if you open different types of accounts to grow your savings. Here are some alternatives to savings accounts.

CDs

A certificate of deposit, or CD, is a type of bank account that holds your deposit for a set term, which could be six months, a year or longer. CDs pay either fixed or variable interest, and you receive the interest plus the amount you deposited when the CD’s term is up. The downside is you may pay a penalty for early withdrawal.

Interest rates on CDs are usually higher than on conventional savings accounts.

You can choose to open one CD and wait until it matures to access all your funds at once, or you can open several CDs with different terms using a CD ladder strategy and access your money at regular intervals as the individual CDs mature.

Money market accounts

A money market account is another type of deposit account at a bank or credit union. You may need to make a minimum deposit to open a money market account. You can make withdrawals or, like a checking account, payments from your account — but typically not more than six times a month.

The interest rate on money market accounts is usually higher than on conventional savings accounts.

Keep in mind that money market funds, or money market mutual accounts, are not the same as money market deposit accounts. Money market funds are investments that are not insured by the FDIC.

Mutual funds and ETFs

Investors form a mutual fund by combining their money and using it to buy investments like stocks and bonds. You can buy shares in a mutual fund to own a portion of the fund’s investments. You’re able to cash out of a mutual fund for a fee whenever you choose, and you receive the value of the assets you hold in the fund.

An exchange traded fund, or ETF, is similar to a mutual fund because you can buy shares in the fund and it invests in stock, bonds and other securities. But if you sell your shares in an ETF, you’ll receive the market value that those shares currently sell for rather than the value of the fund’s assets that corresponds to your shares.

Buying shares in a mutual fund or ETF can potentially result in a higher return than putting money in a savings account. But these investments are not guaranteed by the FDIC, so their value could go down. You scotia high interest savings account lose some or all of the money you invest.


What’s next?

Before choosing a savings account, research your options and think about your financial goals. Here are some questions to ask yourself.

  • What Capital 1 walmart credit card does the account have?
  • Is there a minimum scotia high interest savings account
  • Are there any fees for opening or withdrawing funds?
  • Do I need access to a physical bank branch?
  • What level of risk am I willing to take?

For Credit Karma Savings: Banking services provided by MVB Bank, Inc., Member FDIC. 

Earn a high-yield scotia high interest savings account rate with Credit Karma Money™ Save Start Saving

About the author: Sarah Brodsky is a freelance writer covering personal finance and economics. She has a bachelor’s degree in economics from The University of Chicago. Sarah has written for companies such as Hcareers, Impactivate and K… Read more.

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Источник: https://www.creditkarma.com/savings/i/why-are-interest-rates-low-on-savings-accounts

In reality it's just 1.4% for 3 months if you are a regular customer without any packages

Here’s how you can earn up to 1.80%* interest until August 31, 2021:

Regular Interest Rate (0.05%)1,
Premium Period Interest Rate (up to 0.45%2, based on the premium period chosen; see here for rates),
Ultimate Package Interest Rate Boost (0.10%)3, and
Limited Time Bonus Interest Rate Offer (1.20%)
Here’s how to qualify for the Limited Time Bonus Interest Rate Offer:

Hold a Scotiabank MomentumPLUS Savings Account and an Ultimate Package within the Offer Period (defined below);
Complete the Campaign Enrollment process by August 31, 2021 11:59 pm EST. For jointly held Accounts, all owners on the Account must enroll and agree to the Terms & Conditions; and
Make an eligible deposit into your Scotiabank MomentumPLUS Savings Account.
The Bonus Interest Rate Offer is applicable to eligible deposits from another bank or financial institution deposited between April 1, 2021 and August 31, 2021 (the “Offer Period”) into a new or existing Scotiabank MomentumPLUS Savings Account.

Additional terms apply. See Bonus Interest Rate Offer Terms & Conditions for full details, including a description of how Bonus Interest is calculated.

Follow these 3 steps to enroll in the campaign:

Open a MomentumPLUS Savings Account
Activate your online banking when you receive your debit card
Sign in to online banking to enroll

link

Источник: https://www.highinterestsavings.ca/forum/scotiabank/scotia-offer-up-to-1-8-till-aug-31-if-you-like-to-play-games/

High Interest Savings Account (HISA)

Your High Interest Savings Account (HISA) is designed for those people who have funds to stash away yet still have the peace of mind knowing they can have access to those funds at any time. Your HISA can be also used under a Tax-Free Savings Account (TFSA).

While you have access to your funds and can perform online transfers free of charge, the HISA and TFSA HISA are not designed to be transactional accounts and, therefore, do carry a $5.00 withdrawal/transfer-out charge.


Considering making the switch to Valley Credit Union? It's never been easier»




Valley Credit Union is a member of the Nova Scotia Credit Union Deposit Insurance Corporation (CUDIC), which at $250,000, provides the highest deposit insurance protection in Nova Scotia. In a planned credit union portfolio, you are insured up to $250,000 on a range of accounts.

 

Источник: https://www.valleycreditunion.com/Home/ProductsAndServices/YourMoney/Savings/HighInterestSavingsAccount/

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