Many readers are clearly uncomfortable parking their savings with Ally (See Ally: A Good Choice For Savings Accounts) because even with CDIC coverage they are concerned with GMAC ownership of Ally. They would like to avoid Ally because, after all, a cash account should provide peace of mind, not sleepless nights over whether money is safe. Reader Robert recommends Peoples Trust instead. Peoples Trust is a Vancouver-based bank that offers savings accounts, Tax-Free Savings Accounts, RRSP Savings Accounts and GICs.
Peoples Choice pays a much higher interest rate on TFSA accounts of 3.0% and a slightly higher rate of 2.1% on its regular savings accounts. There are some fees but 5 free transactions per month should be plenty for most people. Peoples Trust offers non-redeemable GICs with interest rates that are better than ING Direct’s but not as good as Ally’s. All savings products have CDIC coverage. Here’s a slightly edited version of Robert’s note:
Ally is paying a decent interest rate but Peoples Trust pays a higher rate of 2.1%. I have been dealing with them for some time transferring funds back and forth from my bank account linked with them. No problem, no fees and guaranteed. Online transfers arrive the next day.
