best interest rates for savings accounts 2019

The rates are subject to change and there are more features to an account than its rate. Always be sure to check the specific banks' / financial. Find a selection of all current ATB interest rates, including Prime, GICs, mortgages, personal and business bank accounts and investment plans. According to the FDIC, savings account rates averaged 0.09% as of the week of August 29, 2019. With savings rates at less than 0.1%, you might.

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Источник: https://www.statista.com/statistics/246234/personal-savings-rate-in-the-united-states/

Say goodbye to high interest rates on savings accounts as lenders cut rates

An interest rate of 3.3 per cent may not seem like much to Canadians who remember the era when rates reached into the double digits. But when Laurentian Bank’s high-interest savings account (HISA) started paying 3.3 per cent in November after years of below-inflation returns on bank deposits, many took notice.

And as of early February, Canadians looking for a savings account paying more than two per cent had a number of additional options. Motive Financial, the digital subsidiary of Canadian Western Bank, for example, was offering 2.8 per cent. EQ Bank was paying 2.45 per cent. And Wealthsimple, a robo advisor, had recently announced its new Wealthsimple Cash account with an annual rate of 2.4 per cent.

The era of higher-paying savings accounts, however, proved surprisingly short.

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With the general level of interest rates heading toward new lows amid the COVID-19 market turmoil, lenders have been quick to backpedal on their eye-popping savings account offerings.

Laurentian’s LBD Digital HISA now pays 2.8 per cent. Motive’s Savvy Savings rate stands at 2.2 per cent. EQ has slashed its rate down to two per cent. And Wealthsimple is now paying 1.9 per cent.

Canadians can still find rates above 2.8 per cent, but those are generally teaser rates that will only last for a limited time period, according to financial products comparisons site Ratehub.ca. DUCA Credit Union, for example, is still offering a promotional three per cent until June 30, but will only pay 1.25 per cent after that.

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And some banks that didn’t have the most competitive rates to begin with lowered their base rate even further. Scotiabank’s Tangerine digital baking brand, for example, cut its rate from 1.1 per cent to 0.7 per cent, even though it retained its promotion of 2.75 per cent for 153 days for new clients.

The shift downward doesn’t seem to have been as quick for guaranteed investment certificates (GICs), which, as the name suggests, guarantee investors their money back. Oaken Financial, for example, is still offering 2.55 per cent for investors willing to deposit their money into a non-registered GIC for one year. It is also holding on to its 2.9 per cent five-year GIC.

However, Canadians can expect lower rates will be eventually passed on to GICs and other fixed-income investments, James Laird, co-founder of Ratehub.ca and president of CanWise Financial mortgage brokerage, said via email.

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“Retirees who rely on fixed-income investments should expect their monthly cash flow to decrease,” he added.

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Still, while the lower rates may disappoint some savers, it’s important not to take on undue investment risk for the sake of chasing a few more dollars, said Owen Winkelmolen, a fee-for-service financial planner and founder of PlanEasy.

“I often hear from clients, ‘Should I invest my emergency fund or my downpayment?'” he said.

His answer is no. While the stock market these days is hardly appealing to investors seeking steady returns, even bond funds are riskier than savings accounts and GICs, Winkelmolen said.

For someone with $50,000 sitting in a savings account, an interest rate cut of half a percentage point amounts to just $250 less in returns per year. That’s not worth incurring additional risk, according to Winkelmolen.

At the same time, even as stocks drop, it’s important not to tilt excessively toward safe investments. A portfolio that doesn’t stay ahead of the inflation rate is also a risk, Winkelmolen said.

“You often see pre-retirees or early retirees with a few hundred thousand [dollars] in cash, and that, unfortunately, is not really working for them.”

There isn’t much savers can do about lower interest rates, but it may be a good time to take a closer look at your banking and investment fees, he said.

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Take a look at what it is you’re paying vs. the value that you’re receiving.”

© 2020 Global News, a division of Corus Entertainment Inc.

Источник: https://globalnews.ca/news/6661296/high-interest-savings-account-rates-cut/

Pandemic personal finance update No. 3: Why you should clean out your big-bank savings account

Your personal finance to-do list for this week:

  • Make sure you’re getting a decent rate on the savings you should be trying to build up.
  • Set up an online account with Canada Revenue Agency.
  • Look for savings in your cable TV and internet package.

The Pandemic Personal Finance Update is a weekly feature of practical, actionable ideas and tips to help people manage their finances through the difficult times ahead. If there’s anything you’d like to see covered, contact me at [email protected] Let’s get started.

Consider emptying your big-bank savings account

The big banks have found a way to save money in these troubled times – by slashing the interest rate on savings accounts to near zero. I have said in previous columns that building a cash reserve is a top financial priority as a pandemic-driven recession takes hold. But the big banks are not a great place to do it right now, even if you value the safety suggested by their size and scale.

There are several alternative banks that offered interest rates around 2 per cent as recently as Monday and are members of the Canada Deposit Insurance Corp., which was discussed in last week’s pandemic update. Short recap: Your money in a CDIC-protected bank is safe if you’re within coverage limits.

Here’s a sample of big-bank posted savings rates as of Monday:

  • BMO Premium Rate Savings: 0.01 per cent;
  • CIBC eAdvantage Savings Account: 0.3 per cent;
  • Scotiabank MomentumPlus Savings: 0.15 per cent, with premium interest of between 0.5 and 1.1 per cent paid if you don’t withdraw money for up to 360 days;
  • RBC High Interest eSavings: 0.05 per cent;
  • Simplii Financial: 0.5 per cent for this CIBC division;
  • Tangerine: 0.4 per cent for this division of Scotiabank;
  • TD High Interest Savings Account: Zero on balances up to $4,999.99; 0.1 per cent for higher balances.

Now for a two-step plan to find a better alternative. First, use the Canadian High Interest Savings Bank Accounts website (highinterestsavings.ca/chart) to find a decent rate and then cross-reference the names with the list of CDIC members (cdic.ca).

You will find several online banks on the high-interest savings website run by Manitoba-based credit unions that are not members of CDIC. They’re backed by a provincial credit-union deposit-insurance plan with an unlimited guarantee of all deposits. I will take a look at the deposit-insurance scheme in Manitoba in a future column.

There’s been some inconsistency in how big banks have reacted to the sharp decline in interest rates initiated by the Bank of Canada last month. Along with savings rates, the rate on variable-rate mortgages and lines of credit has fallen in recent weeks. Mortgage broker David Larock’s quick summary of how fixed rate mortgages compare today to pre-pandemic levels: “They are considerably higher (about 0.50 per cent),” he said Monday by e-mail.

Mr. Larock said mortgage rates are higher because lenders are building in a premium to reflect the increased level of risk in lending right now as a result of the pandemic’s effect on the economy.

Open an online account with Canada Revenue Agency

You can apply for the new Canada Emergency Response Benefit through the CRA, either by phone (1-800-959-2019 or 1-800-959-2041) or its MyAccount website. Conducting any sort of financial business during the pandemic has become an ordeal of waiting.

The CERB is for people who stopped working as a result of COVID-19. Stay with me even if you’re not in this group. Having access to MyAccount is basic personal finance at any time because it helps you manage your latest income-tax filing, see what benefits and tax credits you’re entitled to receive and track your contribution room for registered retirement savings plans and tax-free savings accounts. You can also track correspondence with the CRA.

You need a security code from the CRA to get full functionality from MyAccount, but a CRA spokesman said people can apply for the CERB without waiting for it. The code can be sent by mail – it should arrive within 10 business days – or you can call 1-800-959-8281.

Assess your cable TV and internet package

If you’re doing your physical distancing at home with a spouse and children and have a basic internet package, check your bill for overage charges. Unlimited plans cost more, but you may find there’s savings over the next few months because you have locked in a cost and aren’t subject to costly extra charges.

A reader offered this suggestion: If a premium sports channel is part of your cable TV, give some thought to cancelling it. Professional sports are shut down as a result of the pandemic.

Stay informed about your money. We have a newsletter from personal finance columnist Rob Carrick. Sign up today.

Источник: https://www.theglobeandmail.com/investing/personal-finance/article-pandemic-personal-finance-update-no-3-why-you-should-clean-out-your/

Rates

Promotional Rates*

Fixed Rate Mortgages – Closed (Rates effective 2021-11-19) Rates
3-Year Fixed Closed - High Ratio Only2.49%
5-Year Fixed Closed - High Ratio Only2.59%
5-Year Fixed Closed – Conventional 2.74%
Variable Rate Mortgages – Closed (Rates effective 2021-11-19) Rates
5-Year Variable Closed - High Ratio Only1.45%

*Fixed high ratio promo and fixed special rates are discounted rates from the posted rates. If a mortgage product is not listed with high ratio promo or special rates, the posted rate will apply.

Special Rates

Special*

Fixed Rate Mortgages – Closed (Rates effective 2021-11-19) Rates
1-Year Fixed Closed2.69%
2-Year Fixed Closed2.69%
3-Year Fixed Closed2.79%
4-Year Fixed Closed2.79%
5-Year Fixed Closed2.89%
Variable Rate Mortgages - Closed (Rates effective 2021-11-19) Rates
3-Year Variable Closed1.80%
5-Year Variable Closed1.70%

*Fixed high ratio promo and fixed special rates are discounted rates from the posted rates. If a mortgage product is not listed with high ratio promo or special rates, the posted rate will apply.
Fixed Rate Mortgages – ClosedSpecial promotional rate may be changed or withdrawn at any time without notice. Cannot be combined with any other offer or discount. Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate posted. Rates calculated semi-annually not in advance. Funds must be advanced within 120 days of application. Applies to owner-occupied residential properties only. Some conditions apply. Subject to credit approval.
3 Year Fixed Rate Closed Mortgage - High Ratio Only - 2.49%
Special promotional rate may be changed or withdrawn at any time without notice. Applicable for a High Ratio Mortgage with 25 year amortization period for members with less than 20% down payment, purchasing a residential property valued at under $1,000,000 or subsequent renewing of such a loan, who are eligible for and purchase mortgage default insurance and meet other conditions. This promotional rate is also available for members switching their existing High-Ratio Mortgage, which has the lesser of 25 year amortization period or the remaining amortization of the mortgage to be switched, with less than 20% down payment from another financial institution with a mortgage default insurance to Alterna, for a residential property with an original purchase price under $1,000,000  who also meet other conditions. Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate 2.49% Rates calculated semi-annually not in advance. Funds must be advanced within 120 days of application. Subject to credit approval based on Alterna’s lending guidelines. Mortgage incentives of up to $1,000. Blends and refinances are not eligible. Applies to owner-occupied primary residential properties only.
5 Year Fixed Rate Closed Mortgage - High Ratio Only – 2.59%
Special promotional rate may be changed or withdrawn at any time without notice. Applicable for a High Ratio Mortgage with 25 year amortization period for members with less than 20% down payment, purchasing a residential property valued at under $1,000,000 or subsequent renewing of such a loan, who are eligible for and purchase mortgage default insurance and meet other conditions. This promotional rate is also available for members switching their existing High-Ratio Mortgage, which has the lesser of 25 year amortization period or the remaining amortization of the mortgage to be switched, with less than 20% down payment from another financial institution with a mortgage default insurance to Alterna, for a residential property with an original purchase price under $1,000,000  who also meet other conditions. Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate 2.59%. Rates calculated semi-annually not in advance. Funds must be advanced within 120 days of application. Subject to credit approval based on Alterna’s lending guidelines. Mortgage incentives of up to $1,000. Blends and refinances are not eligible. Applies to owner-occupied primary residential properties only.
5 Year Variable Rate Closed Mortgage High Ratio Only - 1.45% (Prime-1.00%)
Special promotional rate may be changed or withdrawn at any time without notice. Applicable for a High Ratio Mortgage with 25 year amortization period for members with less than 20% down payment, purchasing a residential property valued at under $1,000,000 or subsequent renewing of such a loan, who are eligible for and purchase mortgage default insurance and meet other conditions. This promotional rate is also available for members switching their existing High-Ratio Mortgage , which has the lesser of 25 year amortization period or the remaining amortization of the mortgage to be switched, with less than 20% down payment from another financial institution with a mortgage default insurance to Alterna, for a residential property with an original purchase price under $1,000,000  who also meet other conditions. Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate 1.45% (Prime -1.00%). Prime refers to the Alterna Prime Rate. Alterna Prime Rate is 2.45% as of October 4, 2021. Your interest rate will change whenever the Alterna Prime rate changes.  Rates calculated monthlynot in advance. Funds must be advanced within 120 days of application. Subject to credit approval based on Alterna’s lending guidelines. Mortgage incentives of up to $1,000. Blends and refinances are not eligible. Applies to owner-occupied primary residential properties only.
5 Year Fixed Rate Closed Mortgage – Conventional - 2.74%
*Fixed high ratio promo and fixed special rates are discounted rates from the posted rates. If a mortgage product is not listed with high ratio promo or special rates, the posted rate will apply.
Special promotional rate may be changed or withdrawn at any time without notice. Applicable for new purchases and switches from other financial institutions only. Purchase price less than $1,000,000 and a loan to value under 80%. The amortization must be 25 years, or less. The mortgage to be switched is to have an amortization based on the lesser of 25 years or the same remaining amortization of the mortgage being switched and have an original purchase price under $1,000,000Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate 2.74%. Rates calculated semi-annually not in advance. Funds must be advanced within 120 days of application. Subject to credit approval based on Alterna’s lending guidelines. Mortgage incentives of up to $1,000. Blends and refinances are not eligible. Applies to owner-occupied primary residential properties only.

3 Year Variable Rate Closed Mortgage Conventional - 1.80% - (Prime-0.65%)
Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate 1.80% (Prime -0.65%). Prime refers to the Alterna Prime Rate. Alterna Prime Rate is 2.45% as of October 4, 2021. Your interest rate will change whenever the Alterna Prime rate changes. Rates calculated monthly not in advance. Funds must be advanced within 120 days of application. Subject to credit approval based on Alterna’s lending guidelines. Mortgage incentives of up to $1,000.
5 Year Variable Rate Closed Mortgage Conventional - 1.70% - (Prime-0.75%)
Assuming no additional fees are charged, the Annual Percentage Rate (APR) is the same as the interest rate 1.70% (Prime -0.75%). Prime refers to the Alterna Prime Rate. Alterna Prime Rate is 2.45% as of October 4, 2021. Your interest rate will change whenever the Alterna Prime rate changes. Rates calculated monthly not in advance. Funds must be advanced within 120 days of application. Subject to credit approval based on Alterna’s lending guidelines. Mortgage incentives of up to $1,000.

Term Deposit Promo (Rates effective 2021-03-23) Rates
60 Day Term Deposit0.20%
14 Month Term Deposit0.75%
30 Month Term Deposit0.85%

60 Day Term Deposit
Special promotional rate may be changed or withdrawn at any time without notice. Available for new deposits only or new registered contributions which can include existing funds on deposit. Existing term deposits cannot be broken to receive this offer. Simple interest calculated on the principal amount for the number of days in the term deposit and paid at maturity (principal x rate x number of days / 365 days). Rate shown for annual interest. Minimum investment $500; Maximum investment $500,000. Cashable upon maturity only. Available to personal accounts only.

14 Month Term Deposit, 30 Month Term Deposit
Special promotional rate may be changed or withdrawn at any time without notice. Existing term deposits cannot be broken to receive this offer. Rate shown for annual interest. Annual compound interest paid monthly or annually. Minimum investment $500; Maximum investment $500,000. Cashable upon maturity only. Available to personal and non-personal accounts.

 

Источник: https://www.alterna.ca/Rates/

The Highest APR Savings Accounts 2019

Looking for a savings account with more than 0.01% APR to put your emergency fund in?

For those that have refunds or a bonus coming in, we have lots of advice on where to put that extra cash. We started out by looking into the best savings accounts.

What can you use a high interest savings for?

  • emergency fund (best practice is to have 3 to 6 months of living expenses)
  • take advantage of compound interest (reinvesting your interest and making more $ on it)
  • have extra cash on hand for a large purchase, like a home

How we assessed the best savings accounts

When we looked for savings accounts, we generally wanted

  • higher than average interest rates
  • little to no fees
  • awesome customer service
  • easy to navigate

A trade-off for a high-interest rate is that many are online only. You can use this as an advantage, so that you aren’t tempted to use it, but if you have a real emergency where you need cash right away, we suggest going for the accounts that have a debit account.

OK here is the master list! These are all FDIC insured, so you have some ease of mind.

First pick for High Interest Savings Account (there was a tie!):

If having access to an ATM is important, check out Ally.
Ally Online Savings – 1.60% APY

  • great customer service,
  • no monthly fee/min,
  • great mobile app,
  • checking account with ability to transfer out,
  • ATM access

If you want to have a bit of distance from your savings, and a simple interface, check out Amex Savings:
American Express National Bank – 1.70% APY

  • Great customer service
  • No monthly fees or minimum deposit
  • Member FDIC
  • No physical location
  • Only two options (savings or CD)

2nd Place for High Interest Savings Accounts:

Marcus Savings by Goldman Sachs – 1.70% APY

  • No monthly fees and $1/minimum deposit
  • No physical locations
  • No mobile app
  • Member FDIC
  • No checking account offered (harder to transfer $ out, need to fund into another bank)
  • No ATM access

Other Good Options for High Interest Savings Accounts:

Barclays Online Savings – 1.70% APY

  • member FDIC
  • no minimum to start savings

Synchrony Bank High-Yield Savings – 1.70% APY

CIT Savings Builder – 1.80% APY (tiered)

  • minimum of $25,000 or $100/mo deposit
  • member FDIC
  • high rate

Discover Online Savings – 1.70% APY

  • no minimum
  • online transfers
  • member FDIC

Capital One Money Market – 1.70% APY

  • $10,000 minimum
  • member FDIC

This post was updated January 18, 2020. Rates may be subject to change.

Источник: https://www.snowballwealth.com/blog/the-highest-apr-savings-accounts-2019
RateProduct
0.05%Non-registered
0.40%Tax-Free Savings Account (TFSA)
0.10%Registered Retirement Savings Plan (RRSP)
0.10%Registered Retirement Income Fund (RRIF)

The accounts shown are no longer offered. This information is for existing account holders only.

Power Savings

RateBalance tiers
0.05%$0 - $4,999
0.10%$5,000 - $24,999
0.10%$25,000 - $49,999
0.10%$50,000 - $99,999
0.10%$100,000+

 

Plan 24

RateBalance tiers
0.05%$0 - $4,999
0.05%$5,000 - $24,999
0.05%$25,000 - $49,999
0.05%$50,000 - $99,999
0.05%$100,000+

*Plan 24 Senior Accounts earn an additional 25 bps interest

RateProduct
1.65%RESP account
RateAccount balance
0.025%$0 - $4,999
0.05%$5,000 - $24,999
0.10%$25,000+

Mortgages and Lines of credit

RateProductGet started
3.50% (LOC PRIME)Secured/EquityApply online
2.95% (Prime + 0.50%)

Flex Line Mortgage -
HELOC Component

 
4.50% (LOC PRIME + 1.00%)Student 
Dependant on Credit History and capacity to repay the loanUnsecured 
2.45% (Prime)5  

 

Available in non-registered, RRSP and TFSA. Minimum $100 deposit.

RateProductGet started
1.55%18-month GICLearn more

 

Available in non-registered and TFSA. Minimum $100 deposit.

RateProductGet started
1.10%1-year cashable GICLearn more

Available for RRSP, RRIF and TFSA. Redeemable. Minimum $100 deposit.

RateYear
1.20%Year 1
1.65%Year 2
2.10%Year 3
1.65%Yield

Available for RRSP, RRIF and TFSA. Redeemable. Minimum $100 deposit.

RateYear
1.30%Year 1
1.60%Year 2
1.85%Year 3
2.25%Year 4
2.50%Year 5
1.90%Yield
TermPosted rateBonusTotal rate
1 Year1.40%0.10%1.50%
2 Year1.60%0.10%1.70%
3 Year1.65%0.10%1.75%
4 Year1.70%0.10%1.80%
5 Year1.90%0.10%2.00%
Yield1.65% 1.75%

Available in non-registered, RRSP, RRIF and TFSA. Minimum $100 deposit.

RateProduct
1.40%1 Year GIC
1.60%2 Year GIC
1.65%3 Year GIC
1.70%4 Year GIC
1.90%5 Year GIC

Available in non-registered, RRSP, RRIF and TFSA. Minimum $5,000.00 deposit.

RateProduct
0.45%30 Days
0.45%60 Days
0.45%90 Days
0.50%180 Days
0.60%270 Days

Available for non-registered, TFSA, RRSP and RRIF. Minimum $100 deposit.

RateProductGet started
1.65%3-year Raise the Rate GICLearn more
1.90%5-year Raise the Rate GIC

Available in non-registered and TFSA. Minimum $100 deposit.

RateProduct
0.65%1 Year
0.85%2 Year
0.90%3 Year
0.95%4 Year
1.15%5 Year

Non-registered only. Minimum $100 deposit.

RateProduct
0.05%30 Days
0.05%60 Days
0.05%90 Days
0.10%180 Days
0.20%270 Days

Non-redeemable, minimum $5000 deposit, compounded annually.

RateProduct
0.30%1 Year
0.45%2 Year
0.50%3 Year 
0.70%4 Year 
1.00%5 Year 

Redeemable, minimum $5000 deposit. 

RateProduct
0.05%30 Days
0.05%60 Days
0.15%90 Days
0.30%180 Days
0.35%270 Days
RateProduct
1.10%AgriInvest account
RateClosing daily account balance
0.60%$1,000,000+
0.50%$100,000-$999,999
0.50%<$100,000

 

RateProduct
0.15%U.S. Dollar (minimum $100,000)
RateProduct
0.20%Business Advantage Savings Account ($5,000.01+)
RateProduct
1.20%3-year GIC, cashable
1.55%18-month GIC, non-redeemable
1.10%1-year GIC, cashable

Retail GICs are also available for small business and commercial Members at the prevailing, published rates.

1Interest rates shown are subject to change without notice and are on a per annum basis. Interest is calculated on the closing daily balance and is paid on the last day of each month. Interest is calculated on the closing daily balance and is paid monthly in the same currency as the account for all accounts shown except the RESP account. Interest on the RESP account is calculated on the minimum monthly balance and paid semi-annually (June and December).

2U.S. dollar deposits are not covered by the Financial Services Regulatory Authority (FSRA).

3O.A.C Rates are subject to change without notice. Quoted rate is based on blended payments of principal and interest and is the regulatory Annual Percentage Rate if there is no cost of borrowing other than interest. Interest is calculated half-yearly, not in advance. Additional premiums may apply in cases of a refinance, extended amortizations, non-owner occupied, or other instances where application details may warrant it. The interest rate with variable rate mortgages will fluctuate with Meridian Prime Rate, which is currently 2.45%. Where applicable, the Bank of Canada qualifying rate is 4.79%. Builder's pricing applies to posted rates, not to promotional or special rates. For commercial mortgage rates, please speak to your Commercial Relationship Manager.

4A High Ratio mortgage is applicable in cases where a borrower places a down payment of less than 20% of the purchase price on a home. Refinances, renewals and amortization periods of greater than 25 years are ineligible. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000 and under $1,000,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion. Offer may change or be withdrawn at any time without notice. O.A.C. Rates are subject to change without notice. Quoted rates are based on blended payments of principal and interest and is the regulatory Annual Percentage Rate if there is no cost of borrowing other than interest. Interest is calculated half-yearly, not in advance. Where applicable, the Bank of Canada qualifying rate is 4.79%.

5Interest is calculated on a daily balance and charged monthly. Meridian Prime Lending rate: 2.45%. Minimum payment equivalent to monthly interest charged. Some conditions apply. Rates subject to change without notice.

6Laddered GIC Strategy Bonus Rates are the interest rate earned when the investment principal is equally distributed across each of the 1 to 5 Year GICs. The Average Rate is calculated by taking the average of the rates for each of the GICs, for example; 1 Year GIC at 1.00%, 2 Year GIC at 1.25%, 3 Year GIC at 1.30%, 4 Year GIC at 1.35%, 5 Year GIC at 1.45% equals an Average Rate of 1.27%.

7Redeemable on each anniversary date of each year and 30 days thereafter. Rates subject to change without notice. Not available to Business Members.

8Interest rates are subject to change without notice and are annualized rates, with interest calculated daily and paid monthly.

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Источник: https://www.meridiancu.ca/personal/rates-and-fees

Best High-Yield Savings Accounts of November 2021

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Survey Methodology

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,202 adults. Field work was undertaken between Aug. 6-7, 2020. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+).

High-yield savings accounts are a low-risk, low-effort way to reward yourself for saving. 

With high-yield savings accounts right now, you can make about 0.50% APY (annual percentage yield, which is the expected rate of interest earned over a year). These extra earnings can be small, but over time make a difference. 

For example, a traditional savings account that has an APY of 0.01% with $1,000 in it will earn 10 cents per month. That same $1,000 will earn $5 per month in a high-yield account with a 0.50% APY — a rate of return 50 times higher.

Interest rates have been relatively low since the beginning of the COVID-19 pandemic, but rates for high-yield savings accounts are still significantly better than those for conventional savings accounts. 

Yet only 21% of banked adults in the U.S. have a high-yield savings account, according to a 2020 NextAdvisor survey. Here’s everything you should know about high-yield savings accounts, along with the accounts we think are the best.

Best High-Yield Savings Accounts of November 2021

Ally Bank – Best Customer Service

Founded in 2009, Ally Bank is one of the most prominent online banks. The high-yield savings account, regularly at the top of the pack in terms of interest rates, is one of the bank’s star products, but the institution also offers no-fee investing on stocks, bonds, and ETFs, free interest-bearing checking accounts, money market accounts, CDs, loans, retirement accounts, and other investment vehicles. 

Our survey found 48% of Americans with savings accounts said customer service experience is an important factor when choosing where to open such an account, so it’s important to assess how responsive and engaged a bank is when it comes to questions or issues you might have.

Pros

Responsive and accessible customer service

Ally offers 24/7 customer service through its phone hotline and live chat service, which allows you to chat with a representative near-instantly. Ally also offers an estimated wait time on its homepage for each medium. Since Ally isn’t the only bank offering this kind of 24/7 support, we tested the live chat response and helpfulness of the five other banks we considered that also offer it.

Ally’s live chat stands out among the banks that offer this option. Ally provided the best customer service experience of the five; the other banks either required you to log in (i.e., be an existing customer) or talk to an AI chatbot before speaking to a real person. The Ally customer service representative we spoke to was prompt and friendly (our wait time was one minute), and after the chat, we were directed to a customer experience survey and offered the opportunity to be sent the chat transcript via email. 

Among all retail banks offering high-yield savings accounts, Ally ranked among the top in J.D. Power’s 2020 U.S. Direct Banking Satisfaction Survey. (We didn’t take into consideration investment banks like Charles Schwab Bank and E*TRADE Bank.) Although Ally ranked slightly behind Discover Bank and Capital One, we believe that the increased accessibility of Ally’s live chat customer service in our independent testing is worth taking into consideration. Prospective customers can easily ask questions before they open an account, as well as quickly get help if they run into any problems during the application process.

ATM network with reimbursement

Ally is covered by a network of 43,000 AllPoint ATMs across the United States. You can use your provided debit card to withdraw cash at in-network and out-of-network ATMs. The bank will reimburse you for up to $10 a month in ATM fees accumulated from those out-of-network ATMs.

Cons

No cash deposits

If you receive cash tips or wages, then it could be difficult to work with Ally. There is no way to deposit cash into an Ally savings account at this time, so you would need to find a workaround (such as depositing cash in another institution and then transferring) to take advantage of Ally’s rates and customer service.

Capital One – Best Hybrid

Capital One strikes an interesting balance between a traditional brick-and-mortar bank and a more agile startup. It has locations across the country and carries all the major banking products you’d need (such as checking, savings, and CDs), plus credit cards, while also offering competitive rates. Capital One is beneficial for the consumer who wants all the rewards of a high-yield savings account while maintaining the ability to speak to a bank representative face-to-face.

Pros

More than 700 branches

If you prefer to bank in person, then Capital One is a good choice. The bank operates hundreds of branches across the U.S., including a number of coffee shop-style locations that offer a unique spin on stopping by the bank. If you would prefer to apply for a loan, request a replacement for a lost credit card, or open a new high-yield savings account in person, then Capital One provides a good middle ground between pure online banks and brick-and-mortars. 

Multiple savings account options

Capital One also offers an IRA savings account (tax-advantaged and specifically designed for retirement) and a kids saving account, which offers a lower APY than the regular high-yield savings account but balances that with child-friendly features and parental controls.

Cons

Data breach controversy

In one of the largest hacks ever of a major bank, more than 100 million Capital One customers suffered a data breach in 2019 that left their bank account numbers, Social Security numbers, and other private information vulnerable to fraud. 

As a result, the U.S. Treasury ordered Capital One to pay a $80 million civil penalty, according to the Wall Street Journal. “The government has stated they believe the data has been recovered and that there is no evidence the data was used for fraud or shared by this individual,” the bank said in an official statement. 

In addition to the fine, Capital One is complying with a U.S. Treasury consent order to up cybersecurity measures. Currently, all individuals whose private information was accessed have been contacted and offered free credit monitoring and identity protection services, according to the bank, and the hacker has been captured by the FBI.

“Honestly, this could have happened to any financial institution,” says Ted Rossman, industry analyst at CreditCards.com. “In this case, the accused perpetrator was caught before she was able to sell or use any of the stolen information. While consumers should be mindful of potential future hacks of all types (banks, credit cards, retailers, etc.), the best fixes are to freeze your credit and check your statements regularly. As long as a bank offers FDIC insurance (or NCUA protection for credit unions), I’d feel very confident.”

AXOS Bank – Best for Cash Accessibility

Founded in 1999 as Bank of Internet USA, AXOS is one of the oldest online-only banks in the country. It offers interest-bearing checking accounts, high-yield savings accounts, CDs, mortgages, personal loans, auto loans, and managed portfolios, and allows customers access to 91,000 ATMs throughout the U.S. AXOS is one of only a handful of online banks that allow people to deposit cash — a boon for those who often deal in cash or receive wages in cash.

Pros

Comes with ATM Card

Not every online savings account allows for ATM usage. AXOS provides its customers with ATM cards upon request, allowing you to view balances and make deposits and withdrawals. Keep in mind, though, that the ATM card is not a debit card. You are not able to make purchases and, per federal law, cannot initiate more than six transactions from a savings account per month.

Cash deposits allowed at ATMs and Green Dot locations

With AXOS, you have access to 91,000 ATMs across the U.S. Of the ATMs that allow cash deposits, you can directly transfer those dollar bills into your account. Many of the most popular online banks, like Ally, do not allow you to deposit cash, so we see this as a huge plus for people who receive wages in cash. You can also deposit cash in person at a Green Dot location, which can be found at participating locations of Walmart, CVS, Kroger, Walgreens, Rite Aid, Dollar General, Family Dollar, and other big-box, convenience, and discount stores.

Cons

No ATM reimbursements

Some online banks, like Ally, offer full reimbursement of fees incurred from using out-of-network ATMs (up to a certain dollar limit per month). AXOS only offers ATM reimbursement to checking account users, not savings account users, so you will still have to pay $3-5 per ATM withdrawal whether the machine is in or out of network.

Minimum opening deposit

While a minimum opening deposit isn’t a problem for many people, it can still be a barrier to entry for those who don’t have a lot of cash up front. To open an account with AXOS, you need an opening deposit of $250, although there’s no requirement to maintain a minimum balance. If you were already planning to deposit that amount, then the minimum deposit won’t affect you.  But if you prefer a savings account with no minimum deposit requirements, other banks might be a better fit.

What is a High-Yield Savings Account?

A high-yield savings account is a savings account that offers a competitive APY, or interest rate. A high interest rate can yield tens or hundreds of dollars in earned interest, depending on how much money you have saved. 

Interest rates are always changing, and they have been relatively low since the U.S. entered a recession in early 2020. In other words, a great interest rate for a high-yield savings account is relative, and based on how it compares with other available options. At the moment, interest rates for high-yield savings accounts average around 0.50%, though exact rates vary across banks. In comparison, traditional brick-and-mortar banks tend to have savings accounts with rates around 0.01%.

Emergency funds are one of the most popular reasons people save; 57% of banked* U.S. adults with savings said in a 2020 NextAdvisor survey that they are currently saving for emergencies. Most experts we talk to recommend building a fund of about six months’ expenses, even as you pay down debt. Given that emergency savings should be kept on reserve in an account with easy access, putting that money into a low-risk vehicle like a high-yield savings account is a smart move.

While the accounts we featured here are standouts, there are many good options available. As long as it has a competitive APY, is FDIC-insured, and doesn’t charge any monthly fees, you’ll be better off than you would leaving your savings in a conventional account with a low APY. 

*U.S. adults who have checking, saving, MMA, or CD bank accounts.

How We Chose the Best High-Yield Savings Accounts

In August 2020, NextAdvisor conducted a representative survey of 1,202 U.S. adults to understand customer needs and intent surrounding bank account usage. We found that only 21% of banked adults in the U.S. have a high-yield savings account with an APY above 0.50%. 

To get a comprehensive overview of the online bank landscape, we compiled a list of the 25 most commonly reviewed and searched-for high-yield savings accounts. We then evaluated them based on more than 20 different factors, including minimum opening deposit, minimum balance requirement, overdraft fees, customer service options and availability, and what other accounts each bank offers. 

None of the banks we recommend charge any monthly service or maintenance fees. Because so many reputable banks offer good APYs on free accounts, we think people should take a hard pass on any banks that do charge a monthly maintenance fee to keep a savings account.

In addition, all of the contenders and final picks are insured by the Federal Deposit Insurance Corporation (FDIC), which protects your money up to $250,000 in the event a bank goes out of business. 

While all the accounts we chose offer competitive interest rates compared to traditional savings accounts, we didn’t set any hard criteria for APY. This is because interest rates are constantly in flux and can change based on market conditions. Rather, we took a more holistic approach to our review, looking at non-rate features like the quality of customer service, ATM access, and other conveniences to make the banking experience better. For detailed, up-to-date interest rate information, check out our Best Savings Account Rates page. 

Pro Tip

Find a bank that charges $0 in monthly maintenance fees! You shouldn’t have to pay to use your bank account.

The Case For an Online Bank

Only 30% of U.S. adults have an account with an online bank, according to a NextAdvisor survey. Yet they offer considerable perks. 

Compared to national bank chains with a network of physical locations, online-only banks have far less overhead. This helps explain why they offer more competitive interest rates, and typically charge fewer and lower fees. Many of them also forgo common fees (such as monthly maintenance fees) or offer other benefits (such as early direct deposit), in line with their role as banking industry disruptors. 

Are High-Yield Savings Accounts Safe?

Yes. High-yield savings accounts are offered by FDIC-insured banks and NCUA-insured credit unions. This backing by the federal government means that if the bank were to shutter, you would be able to recover up to $250,000. Avoid any banks or credit unions that aren’t federally insured.

What to Consider When Choosing a High-Yield Savings Account

There are many factors to consider when reviewing the marketplace of savings account:

  • Annual Percentage Yield (APY): This is the interest rate at which you’ll earn money in one year, in exchange for keeping your funds in the savings account. The higher, the better.
  • Fees: Many banks require monthly maintenance fees in order to keep the account open. We recommend going with a bank or credit union that doesn’t charge this fee.
  • Minimum deposit required: Oftentimes, to open a savings account, you’ll need to provide an initial deposit to the bank, though many online banks allow you to open an account with $0. Keep the minimum deposit in mind if you’re low on cash.
  • Minimum balance required: Many banks require a certain amount of money to be in the savings account at all times. If you don’t maintain the minimum balance, you could incur fees or lose your APY for the months you don’t meet the threshold.
  • Withdrawal options: You’ll want a bank that has ATMs or partners with ATM companies, so you’re able to withdraw cash on the go. Just keep in mind that federal law limits savings accounts to six monthly withdrawals or transfers.

Best Uses for a High-Yield Savings Account

High-yield savings accounts are all-purpose, allowing you to save for both short-term and long-term goals. They offer competitive interest rates while also keeping your funds liquid in case of an emergency. Here are some ideas for how you can use your high-yield savings account:

High-Yield Savings Account FAQs

Why are interest rates so low?

In March 2020, the Federal Reserve cut target interest rates to near-zero, causing nearly every lender and bank to lower their rates in turn. The low rates make for a competitive borrower’s market for those with a steady income, but the move also led to a decrease in returns on savings accounts and other types of bank accounts.

How do high-yield savings accounts work?

High-yield savings accounts allow you to earn a little bit of money in exchange for keeping your money secure with the bank. Savings accounts are intended for short- and long-term savings goals, whereas checking accounts are intended as your primary account for paying bills and making purchases.

The interest rates for savings accounts tend to be higher than checking accounts, and those rates are even higher for online banks and credit unions. But savings accounts do have some limitations. For example, you can’t make more than six monthly withdrawals or transfers due to federal law, and some online banks don’t allow you to deposit cash into an ATM.

Are high-yield savings accounts FDIC insured?

Yes. High-yield savings accounts from banks are insured by the FDIC, while accounts from credit unions are insured by the NCUA. Any bank or credit union you consider should be federally insured for your protection. All of our picks in this review are federally insured.

How do you open a high-yield savings account?

To open a high-yield savings account, you’ll need to provide information about yourself to the bank or credit unions. You may be asked to provide your full name, permanent address (and proof you live at that address), contact information, date of birth, Social Security number, a photo ID, and bank account information if you’re looking to transfer funds into the new account. You may be asked to put up an initial deposit by cash, check, or online transfer.

From there, you’ll pick between an individual and joint account, and submit the application, which can be approved near-instantly or within a few days. Most major banks — and all online banks — offer ways to open an account online or through their banking apps.

How do you find the best high-interest savings accounts?

There are hundreds — even thousands — of bank and credit unions that offer savings accounts. We recommend doing your research based on what’s best for you? Do you value a high interest rate? Do you need a bank that allows cash deposits? Do you prefer mobile banking to going to a branch in person? Then you’ll need to take APY, ATM locations, and mobile app experience into consideration before opening an account. At very least, it’s best to go with a bank that’s federally insured and doesn’t charge a monthly maintenance fee.

Further Reading

We have covered savings accounts at length. We like to think we’re experts. Read on for more of our savings account coverage:

Источник: https://time.com/nextadvisor/banking/savings/best-high-yield-savings-accounts/
best interest rates for savings accounts 2019

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