High Interest Savings Accounts And What You Should Know


When it comes to savings accounts, not all are the same. Indeed, some may better suit your specific needs than others.

When you put money on credit, be it a credit card or a loan, you get charged interest on the balanced owed. What if you were able to benefit from interest charges in your favor when you save money? That is where finding the right high interest savings account comes in handy!

Putting your money in a high interest savings account will allow you to get cash back from your own money saved. Some accounts will require a minimum deposit amount, while most will not. For some accounts, you might get a higher interest rate with a higher account balance.

If you are ever in a financial situation where you can actually put some money aside for some length of time, this type of account can be of benefit to you. Unlike investments that can be risky and that have limitations as to when you can withdraw and use your money, high-interest savings account allow you the flexibility of withdrawing at any time, the cost only being the potential interest you could have earned on the amount. You also don’t risk losing any money when going the high interest savings account route as it’s your money in your account, none of it is at risk of a loss as when you invest. Yes, the returns do not have the potential to grow as much, but you know that your initial investment will stay the same.

Benefiting from this type of product is a smart move. Why have your money just sit in your checking account earning you nothing when that 1000$ could earn you 20$. Granted, it’s not a lot, but I would personally rather get a free 20$ than 0$ for that exact same 1000$ savings!

Using ratehub.ca, I did some comparisons of the highest rates at the beginning of this year:

At its 2% interest rate, the Scotiabank Momentum Plus savings account could earn you 20$ for a 1000$ balance. If you have 5000$ in your account, that interest return jumps to 100$. Scotiabank seems to be one of the highest.

When choosing your account, make sure to read the conditions carefully. Indeed, we could be disappointed in an offer that seems better than the others, only to find out it isn’t necessarily. For example, Tangerine is offering a 2.75% interest rate return. However, when you read the conditions, you will find that this rate is only applicable the first 180 days and falls to 1.1% after that. It might still be a great deal for you under the right circumstances. Just make sure to use due diligence.

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