Choosing a savings account with Hardbacon
The interest rate is the most important indicator when choosing a savings account. This is why it is the main information shown for each savings account on our comparison tool. It is important to pay attention to the fees (monthly fees, transaction fees...) since they could quickly exceed your interest income. Finally, some customers would choose the institution where they already have their checking account to open a new savings account, because transfers are made almost instantly between accounts, within the same financial institution. If you wish to narrow your search to only one or two financial institutions, select the institution name on the left sidebar.
Frequently Asked Questions
Regardless of the financial institution, large or small, there is no risk of losing the money deposited in your account if it is below $100 000. It is the maximum insurable amount defined by the Canada Deposit Insurance Corporation (CDIC). Every Canadian bank is a member of the CDIC. Other types of institutions are also members, like insurance companies, financial cooperatives and more. If you want to make sure that your money is secure, visit the CDIC website to verify if your institution is a member.
Yes! This is an advantage of savings accounts compared to other types of accounts. You are able to transfer money using your bank interface. If you have a checking and a savings account in the same institution, you can transfer instantly your money from one account to another. On the other hand, if your account is in a different institution, the transfer may take a couple of days.
The transaction fees are billed each time you make a deposit, a withdrawal,a transfer, a bill payment and make purchases using a debit card. If you expect to be doing those transactions, it is recommended to opt for a checking or savings account with zero-transaction fees. You can find this information under each offer under "Transaction Fees".
Some savings accounts offer an interest rate which increases depending on the account balance. For example, you will get a 0% interest with an account balance of $0 to $5,000, 0.05% from $5,000 to $250,000, 0.1% from $250,000 to $1,000,000. Those ranges may vary depending on the institution. To access this information, look at the "Interest Rate Description" under each saving account.