The Money Reporter, the investment letter for investors whose interest is more interest, publishes a monthly survey of the best interest rates in Canada.
One of the easiest places for you to put your cash, of course, is a regular savings account. The advantages of these accounts is that they usually have a low or no minimum balance and they usually let you withdraw your money whenever you need it.
Then too, these accounts are typically insured against loss by a deposit guarantee corporation such as the Canada Deposit Insurance Corporation, or CDIC.
The CDIC is the most well-known of these corporations, as it is a federal crown corporation created by the Parliament of Canada. It insures eligible deposits you make with its member institutions in case they fail. It insures up to a maximum of $100,000 (principal and interest combined) per depositor per insured category. There are seven categories including deposits held in one name and deposits held in more than one name.
A drawback of savings accounts, of course, is the low rate of return they pay you. That’s why it pays to do a little digging in order to maximize your return. Here are the two highest rates on savings accounts we’ve found among Canadian financial institutions.
Earn 2.80 per cent from a Motive savings account . . .
Motive Financial currently offers 2.80 per cent on its Motive Savvy Savings Account. Motive is an online bank based in Edmonton, Alberta. It’s a division of Canadian Western Bank. The bank is a member of the CDIC, as discussed above.
Its Motive Savvy Savings Account is available to Canadian residents, except those who live in Quebec. There is no monthly fee. Motive’s website is motivefinancial.com.
. . . or 2.45 per cent from Maxa Financial
Maxa Financial offers 2.45 per cent on its Maxa Savings Account. Maxa is a digital bank that’s a division of Westoba Credit Union Ltd., which is based in Manitoba. Deposits are 100-per-cent guaranteed by the Deposit Guarantee Corporation of Manitoba, which maintains a fund to guarantee the deposits of Manitoba credit unions and caisses populaires.
Maxa’s financial services are available to all Canadian residents. No minimum balance is required, and there’s no monthly maintenance fee. Maxa’s website is maxafinancial.com.
This is an edited version of an article that was originally published for subscribers in the July 19, 2019, issue of Money Reporter. You can profit from the award-winning advice subscribers receive regularly in Money Reporter.
Money Reporter, MPL Communications Inc.
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