Should you open a Simplii High Interest Savings Account? It’s an unfortunate truth, your money loses value over time; that’s inflation for you. Everyone should have an account for emergencies. Unfortunately, the rates on traditional savings accounts leave a lot to be desired. A high interest savings account (HISA) can help make the most of your rainy day fund. Simplii Financial offers a competitive interest rate to help you earn more on your deposits and temper the sting of inflation. Let’s take a look at the key features, pros, and cons of a Simplii High Interest Savings Account.
- About Simplii Financial
- What is a high Interest savings account?
- Simplii High Interest Savings Account at a glance
- Are there any special offers?
- Rates and fees
- Is your money safe with Simplii Financial?
- How to open a Simplii High Interest Savings Account
- Simplii High Interest Savings Account pros and cons
About Simplii Financial
Simplii Financial is a web-based digital bank owned by the Canadian Imperial Bank of Commerce (CIBC) that provides banking, borrowing, and investment services directly to consumers exclusively online. Since its inception in 2017, Simplii Financial has won several awards across categories such as value for money, online banking excellence, mobile banking excellence, and more. They have even been named one of the World’s Best Banks by Forbes three years in a row.
CIBC is not new to the digital bank space. For 20 years, CIBC had partnered with Loblaws to provide banking services through President’s Choice Financial, known as PC Financial. The two companies ended their partnership in August of 2017, and CIBC went on to create its own digital bank, Simplii Financial. Today, Simplii Financial offers a wide range of essential banking services that include, but are not limited to:
- Bank Accounts: chequing, high-interest savings, USD savings
- Credit and Lending: credit cards, mortgages, personal loans, lines of credit
- Investment Products: Tax-Free Savings Account (TFSAs), registered retirement savings plans (RRSPs), guaranteed investment certificates (GICs), mutual funds
What is a high Interest savings account?
A high interest savings account (HISA) is similar to a traditional savings account but offers a much higher interest rate on deposits. Sometimes certain conditions and restrictions apply in order to access the higher rate. The interest rate on a HISA is tied to the interest rates set by the Bank of Canada. The rate a financial institution offers on something like a HISA can change anytime without notice if the Bank of Canada changes the benchmark interest rate.
Simplii High Interest Savings Account at a glance
The only Canadian dollar savings account offered by Simplii Financial is a High Interest Savings Account. It offers a standard interest rate of 0.10% on every dollar in the account. Interest is calculated on the daily closing balance and deposited into your account monthly. There is no minimum balance required to qualify for and earn interest on your deposits. The Simplii High Interest Savings Account does not charge a monthly service fee or transaction fees. In fact, it made Hardbacon’s list of best high interest savings accounts in Canada.
Having said that, you cannot access the money in your Simplii High Interest Savings Account with your debit card or through an automated teller machine (ATM). Instead, you need to transfer money from your HISA to your chequing account, then use your debit or withdraw from the ATM. Simplii Financial customers can access their money free-of-charge from any CIBC ATM in Canada. The Simplii Financial No Fee Chequing Account also offers free unlimited transactions like debit card purchases, withdrawals, bill payments, eTransfers, and more.
Are there any special offers?
New clients earn 5.25% interest on a new Simplii Financial High Interest Savings Account. Ends April 30th 2023.. You can also combine this offer with the welcome offer on the Simplii Financial No Fee Chequing Account as well.
New clients who open a Simplii Financial No Fee Chequing Account before March 31st, 2023 could get a $350 cash bonus deposited to their account. To qualify, you need to set up an eligible recurring direct deposit of at least $100 for 3 consecutive months. You could also be pre-approved for a Simplii Cash Back Visa Card, conditions and restrictions apply.
Existing Simplii clients can earn a $50 cash bonus for successful referrals. There is no limit to the number of referrals you can make, which means there is no limit to the amount of money you can earn from the referral bonus.
Rates and fees
The standard interest rate for the Simplii High-Interest Savings Account is 0.10%. This account is completely free with no minimum account balance required to enjoy free transactions. Having said that, the reason transactions are free is because you can’t access your Simplii High-Interest Savings Account with a debit card, ATM, or with eTransfers to other accounts. The only way to access the money in your Simplii HISA is to transfer it to your Simplii No Fee Chequing Account. From there, you can access your money by debit card, ATM, or Interac eTransfer. Transfers between your Simplii accounts are also free. If you don’t use your account for at least 2 years, Simplii Financial will charge an annual $20 inactivity fee.
Is your money safe with Simplii Financial?
Simplii Financial is a Schedule 1 Bank, which means it is a fully regulated financial institution under the Federal Bank Act. Other Schedule 1 Banks include Canada’s Big 6: National Bank of Canada, Royal Bank of Canada (RBC), Canadian Imperial Bank of Commerce (CIBC), Bank of Montreal (BMO), Scotiabank, and Toronto Dominion Bank (TD). Simplii Financial is owned by CIBC and the money in your Simplii accounts, like chequing and savings, is insured by the Canadian Deposit Insurance Corporation (CDIC). That means if Simplii Financial fails, like if it were to go bankrupt for example, the CDIC would cover up to $100,000 of your eligible deposits.
Digital banks like Simplii Financial are no less safe than a traditional bank with physical branches. There are specific requirements you must follow in order to protect your account from unauthorized access, theft, fraud, and your own negligence. Your responsibilities are outlined in the Simplii products and services agreement, which you can access on their site.
How to open a Simplii High Interest Savings Account
You can open your Simplii High Interest Savings Account online, or by calling 1-888-723-888. The entire process is fairly easy and should only take a few minutes. To qualify for a Simplii account, you must be:
- A Canadian resident living outside Quebec
- Be the age of majority in your province or territory
- Have a social insurance number (SIN)
Simplii High Interest Savings Account pros and cons
🟢 Pro: 0.10% interest rate
🟢 Pro: 2.20% promotional rate
🟢 Pro: no monthly fee
🟢 Pro: no transaction fees
🟢 Pro: no minimum balance requirement
🟢 Pro: $50 referral bonus
|🔴 Con: promotional offer ends soon|
🔴 Con: standard rate not the most competitive
🔴 Con: no instant access
🔴 Con: $20 inactivity fee
🔴 Con: Not available in Quebec
Compare dozens of Canadian chequing accounts and find the one that best suits your needs.
About The Author: Heidi Unrau
Heidi Unrau is the senior Finance Journalist at Hardbacon. She studied Economics at the University of Winnipeg, where she fell in love with all-things-finance. At 25, she got her first bank job as an entry-level teller. She moved up the ranks to Credit Analyst, Loans Officer, and now a Personal Finance Writer. In her spare time, you'll find her hiding in the car listening to Freakonomics podcasts, or binge-watching financial crime documentaries with a pint of Häagen-Dazs. When she's not chasing after her two little boys, she's in the hot tub or arguing with her husband over which cash back card to use for date night. She’s addicted to coffee, crypto, and obsessively checking her credit score on Borrowell.
Fun Fact: Heidi has lived in five different provinces across Canada, loves her free Tangerine bank account, and will never cut back on Starbucks. Like ever.
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