High interest savings account/cashable gic

[997TT]

Just wondering if any of you guys have put some $ into those 3%+ high interest savings account or cashable GICs. I see a few ads from Simplii, eq, tangerine etc and just wondering what fine print they come with. I know a lot of them are just for 6 months but that time frame works well for me. Just wanted to know if interest was calculated daily or paid out monthly or at maturity.

Anybody using one of these and have +ve things to say and can recommend one over the other?

[msommers]

Tangerine works as advertised. Even get a referral bonus for both of us if you want. Did the same thing with my fiance, easy peasy.

Only thing is when you setup your account, you have to go to Canada Post to verify your info/ID. Otherwise all self serve online.

[realazy]

I have money in the EQ bank high interest saving account and also their GICs. It's all CDIC insured and transfers to and from my TD account are quick.

Funds pulled into EQ bank are on hold for 5 business days, but it's not that big of deal as they accrue interest right away. Pushes to TD and payments to credit cards usually show up the next morning.

[Mitsu3000gt]

I have a TD "ePremium" high interest savings account and the only catch is a a minimum monthly balance. It pays 1.2% which isn't horrible but your money is probably better off elsewhere.

I would suggest just buying low-risk ETFs if you are looking for "set it and forget it" safe investment options. Vanguard recently introduced "VGRO" and IMO it is a very good product, as well as CAD which is nice. Commissions can be zero and management fees of around 0.2%.

[Xtrema]

You are talking about all those smaller banks/credit unions that use 3% for 3 months type teaser rate then reset back to somewhere between 1-2%?

No, not worth the hassle.


If you have $100K, that 1% differential for 3 months is only worth only about $250, $1K for the year. Outside of RRSP or TFSA, government takes half. If you don't have $100K, it's even less. Just more hassle for very little gain.

Most banks will give you 1.2% for "high" interest saving and 2.2-2.5% if you lock it in for 15-18 months GIC.

[Sugarphreak]

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