Which bank has the highest interest rate on savings account in Canada?
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- Updated On:29-Nov-2022
- Replies:1
Short Answer
According to our analysis, CIBC eAdvantage Savings Account seems to offer the highest interest rate in Canada. Let's see why CIBC ranks high in interest rate offered.
Detailed Answer
What is a Savings Account?
A chequing account in Canada, is the one that helps in managing your personal cash flow. Whereas, a savings account is where money is parked to earn interest income whilst being liquid. This is basically a reserve kept in an at-call account that can be accessed during emergencies or any planned needs.
The important feature one investigates before opening a savings bank account is the interest rate that the bank offers. The more the interest rate is, the better prospects of earning money for parking money with the service provider.
Which bank has the highest interest rate on savings accounts in Canada?
The Canadian Imperial Bank of Commerce (CIBC) is one of the big five banks in Canada and was established in 1961. The bank offers CIBC eAdvantage Savings account, through which you can earn an interest income of up to 4.25%. The interest is split into three parts:
- Regular Interest rate of 1.25% plus
- Smart Interest rate of 0.75%. This is applicable when you save at least $200 per month and is capped at $200,000. Plus
- A bonus of 2.25%. This bonus is given for the first 4 months of opening the savings bank account.
Pros of CIBC eAdvantage Savings account
- Any Canadian who is 18 years or above can open this savings bank account.
- The account does not charge any monthly fee or mandate any minimum account balance.
- The interest is calculated daily and is paid out on a monthly basis.
- You can access the account information 24/7 via online banking.
- The account is insured by Canada Deposit Insurance Corporation (CDIC).
Cons of CIBC eAdvantage Savings account
- Paper statements not available
- $5 charged on every transaction
- If you draw money in a non-CIBC ATM, you will be charged $2 every time you do so.
Savings Bank Account in Canada
We all explore the highest interest rate earning savings bank account as the income earned should beat the inflation.
Some other high interest rate earning bank accounts in Canada are EQ bank (2%), Saven Financial (3.30%), Neo Financial (1.80%), and Oaken Financial Savings Account (3%). There are many other banks offering different interest rates that keep on varying over time. So, do checkout the respective bank's official website for the latest rates applicable on your savings account.
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Discussion (0)
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