High-Interest Savings Accounts Revisited

With recent media reports indicating that the Virgin Group is planning to launch banking in Canada, the already crowded high-interest savings accounts marketplace is about to become more so. Here’s a long list of places where you can now park your cash:

1. E*Trade Cash Optimizer Account: The discount broker offers 4.15% on Canadian dollar and 2.5% on US dollar account. The account is not insured by CDIC but covered by the CIPF of which most discount brokers are a member.
2. ICICI Bank: The HiSAVE Savings account offers 4.10% on Canadian dollar and 3.25% on US dollar accounts. Customer service issues have been reported in the press and it is not clear if they have improved now.
3. Citizens Bank of Canada: The Ultimate Savings Account offers 4.00%.
4. Canadian Tire: The High Interest Savings account offers 3.85%.
5. Achieva Financial: The Manitoba-based credit union offers a daily savings rate of 3.85%. Credit Union Deposit Guarantee Corporation, not CDIC, insures the deposits.
6. Outlook Financial: Another Manitoba-based credit union offering 3.85%. Deposit insurance is through Credit Union Deposit Guarantee Corporation.
7. President’s Choice Financial: The Interest Plus savings account offers 3.75% if the daily balance is more than $1,000. A bonus interest, ranging from 0.03% to 0.25% is paid every year depending on the average annual balance. PC Financial also offers an Interest First savings account that pays 2.8% on any balance.
8. HSBC Direct: The Direct Savings Account offers an introductory rate of 4.75% until May 2, 2008 and a regular rate of 3.7%.
9. ING Direct: The pioneer in online savings now offers a middle-of-the-pack 3.65% on C$ and 2.5% on US$ savings.
10. Dundee Bank of Canada: Only available through a financial advisor and offering 3.6% on C$ and 2.75% on US$ accounts.
11. Altamira CashPerformer: Also available through your discount brokerage account (watch out for redemption fees). 3.6% on C$ accounts and 2.75% on US$ accounts.
12. RBC High Interest eSavings: If you are already a RBC client, the eSavings account offers 3.5% and free transfers between the account and an RBC chequing account.
13. Scotia Money Master Account: If you are already a Scotia bank client, the Money Master account offers 3.25% and free transfers between the account and other Scotia Bank accounts.
14. MRS High Yield Plus:This savings account from Mackenzie Financial offers an interest rate of 3.6%.
15. Manulife Bank Advantage Account: Actually a chequing account that offers an interest rate of 3.55%. You’ll pay a fee for using the chequing features.
16. Summit Savings Account: Canadian Western Bank offers 4.15% on a minimum balance greater than $5,000.