It is amazing how competitive the online high interest savings account marketplace has become. The Financial Post reported the other day that even mighty Wal-Mart is planning to enter the crowded field. Here’s a long list of places where you can now park your cash:
- ING Direct: The pioneer in online savings account no longer offers the best interest rate. 3.5% on C$ and 3.5% on USD accounts.
- President’s Choice Financial: The Interest Plus savings account offers 4% if the daily balance is $1,000 or more. A bonus interest ranging from 0.03% to 0.25% is also paid every year.
- Achieva Financial: The Manitoba-based credit union offers a daily savings rate of 4.10%. Deposits are insured by Credit Union Deposit Guarantee Corporation, not CDIC.
- E*Trade: Just announced its Cash Optimizer Account offering 4.15% on C$ balances and 4.75% on USD balances.
- HSBC Direct: Another new entrant offering 3.5% on C$ accounts.
- ICICI Bank Canada: Offers 3.75% on C$ and 4.25% on USD accounts. Watch out for customer service issues.
- Dundee Bank: Only available through a financial advisor and offering 3.85%
- Amex Bank: American Express offers an interest rate of 2.40% that is now scraping the bottom of the barrel.
- Altamira CashPerformer: Also available through your discount brokerage account (watch out for redemption fees). 3.75% on C$ accounts and 4.5% on US$ accounts.
- Outlook Financial: Another Manitoba-based credit union offering 4.10%. Deposit insurance is through Credit Union Deposit Guarantee Corporation.
- Canadian Tire High Interest Savings: This new entrant offers a 3.8% interest rate.
