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Saving. It’s all about cutting back, saving often, and making it a priority. Saving can be hard work and yet it’s so worth it when you see how much you can accumulate over time.
What happens to your cash once it’s in your savings account? The surprising truth is that between inflation and bank fees, you could actually be losing money in your savings account. The key is to make your bank work for you and get the best interest rate possible. Not all savings accounts are created equal.
According to Ratesupermarket.ca, the highest interest rate today is 2.5 percent through President’s Choice Financial. The lowest was National Bank of Canada offering 0.02 percent. In the fine print category, DUCA Financial Services, a credit union, actually came out at the top of the list at 2.55 percent — but upon closer inspection, it turns out you only get that rate for 90 days after which the rate drops to 1.5 percent. Still not bad compared to some of the lowest rates out there.
So how does that translate into cold, hard cash? Save $1000 in the President’s Choice savings account and after a year you’ll earn $76.89 in interest. Over at National Bank, you’ll earn just 60 cents. That’s a pretty huge difference.
Interest rates aren’t the whole picture of course — you also need to check bank fees. (President’s Choice Financial, for example, is a no-fee account and has no minimum balance. Ditto at Canadian Tire Bank.)
To help you see how your savings account measures up, here’s a list of the top interest rates being offered via Ratesupermarket.ca.
DUCA Financial Services
2.55 percent (with the interest rate dropping after 3 months). After a year, your $1000 would earn $78.47.
President’s Choice Financial
2.50 percent. After a year, your $1000 would earn $76.89.
Tangerine (formerly ING Direct)
2.50 percent. After a year, your $1000 would earn $76.89.
1.50 percent. After a year, your $1000 would earn $45.68.
ICICI Bank
1.45 percent. After a year, your $1000 would earn $44.13.
