Where to get the best interest rate in Canada

The Money Reporter recently surveyed all of Canada’s federally- or provincially-insured deposit-taking institutions to find the best interest rates paid in Canada. Rates offered ranged from 0.47 per cent for three-month treasury bills to 2.5 per cent for some GICs and RRSPs.

The highest interest rate we know of on a five-year Guaranteed Investment Certificate (GIC) right now is 2.5 per cent. In fact, several financial institutions offer this rate. But most of them require a minimum deposit of $1,000. One, however, requires a deposit of just $500.

That institution is MAXA Financial. MAXA is a division of Westoba Credit Union Ltd., a Manitoba-based financial institution. With $1.2 billion in assets and 17 locations scattered across the province, Westoba is Manitoba’s sixth largest credit union.

The credit union’s MAXA division offers its services by mail, telephone, fax, automatic teller machine or via the Internet to all consumers in Canada. And because it’s not a traditional bricks and mortar operation, of course, it can offer superior rates on its investment products.

Deposits guaranteed by Manitoba

All deposits and interest are 100-per-cent guaranteed by the Deposit Guarantee Corporation of Manitoba. The corporation provides this guarantee to credit unions and caisses populaires throughout the province.

MAXA offers competitive rates on all its terms to maturity. Rates on GICs are as follows: one year, 2.00 per cent; two year, 2.10 per cent; three year, 2.20 per cent; four year, 2.35 per cent; and five-year, 2.50 per cent. The firm offers the same rates on deposits held inside Registered Retirement Savings Plans (RRSP), Registered Retirement Income Funds (RRIF) and Tax-Free Savings Accounts (TFSA).

MAXA also offers an attractive savings account

MAXA also offers a savings account that currently pays 1.70 per cent. No minimum balance is required and there is no maintenance fee. Interest is calculated on daily closing balances and paid monthly. The account permits electronic withdrawals and bill payments, debit card purchases and cheques. However, there are fees associated with these features.

The firm also offers RRSP, RRIF and TFSA savings accounts.

 

Money Reporter, MPL Communications Inc.
133 Richmond St. W., Toronto, On, M5H 3M8, 1-800-804-8846

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