I tried six different high interest savings accounts - here are my thoughts

The good and no-so-good on six safe parking spots for your money

As a 30-year personal finance guy, I have accumulated a lot of accounts at alternative banks for personal use and professional curiosity. Now for some comments on each account in my collection. Deposits at each institution listed here are covered by deposit insurance, either Canada Deposit Insurance Corp. or the Financial Services Regulatory Authority of Ontario, which protects credit union deposits.

Canadian Tire Bank

I recently opened a savings account here, just for the competitive interest rate.

What I like about CTB:

-a non-flashy, but clean, efficient and informative website

-2.4 per cent interest as of mid-May

-simple to set up electronic transfers to and from external chequing accounts

What I don’t like about CTB:

-just a simple savings account - I don’t see any e-transfer or bill payment option

-if there’s a way to set up multiple accounts, it’s not very clear

-cumbersome set-up process that involved waiting for account info by mail

-where’s the mobile banking app?

EQ Bank

EQ has the go-ahead to complete its buyout of PC Financial, so expect some changes going forward. My comments reflect EQ’s evolution in recent years from a savings-first alternative bank to an all-purpose player for day-to-day banking.

What I like about EQ:

-you can set up multiple accounts and give them nicknames like “2026 summer vacation” or “reno fund,” and you can also pay bills and send e-transfers from any account

-EQ’s prepaid Mastercard is great for travel because the bank does not charge the usual 2.5 per cent foreign transaction fee on purchases outside Canada; a purchase on the card is automatically paid with a debit from a linked savings account

-the interest rate on your account is clearly displayed

-while the standard interest rate is a thin 1 per cent, you can increase that to 2.75 per cent as of mid-May by having at least $2,000 direct deposited into the account each month; 2.35 per cent and 2.75 per cent interest is available for accounts that required you to give notice 10 and 30 days, respectively, before making a withdrawal.

-simple to set up electronic transfers to and from external chequing accounts

What I don’t like about EQ:

-the website can be sluggish to load and twitchy

-the app stopped accepting my fingerprint for logins in favour of tougher security measures that are not well explained

Oaken Financial

It’s all about the rate.

What I like about Oaken:

-2.8 per cent interest as of mid-May!

-simple to set up electronic transfers to and from external chequing accounts

What I don’t like about Oaken:

-just a basic savings account

-took a few back-and-forths by email to get an account set up

-rudimentary mobile app

Saven Financial

I keep money here to benefit from top rates - 2.85 per cent as of mid-May. Saven is the only credit-union owned player on this list. The parent is FirstOntario Credit Union.

What I like about Saven:

-a simple product - just a savings account paying comparatively great rates

-you can e-transfer money from your savings account, and deposit a cheque by taking a photo of it

What I don’t like about Saven:

-the app and website are a bit clunky and dated looking

-quirky online login process

Tangerine

I was an early adopter of Tangerine predecessor ING Direct, which is to say I’ve been a client for decades. High rates were the early draw; now it’s a full no-fee digital banking experience.

What I like about Tangerine:

-one of the better alt bank websites and apps, with constant tweaks

-you can have multiple savings accounts in addition to a chequing account, and give them nicknames

-bill payments and e-transfers can be done from the no-fee chequing account

What I don’t like about Tangerine:

-Tangerine often has temporary interest rate bonus offers, but the standard savings rate is 0.3 per cent

Wealthsimple

Wealthsimple began as a disruptor in the investing realm, but the company has grown into a full-service financial institution. A bank, in other words. I keep accounts at Wealthsimple as an eye on what one of the country’s top innovators is doing.

What I like about Wealthsimple:

-maybe the best online experience of this bunch, and a great mobile app as well

-you can have multiple accounts with individual nicknames, and pay bills or send e-transfers from them

What I don’t like about Wealthsimple:

-the base interest rate of 1.25 per cent is modest; you get 1.75 per cent at $100,000 in assets at Wealthsimple and 2.25 per cent at $500,000

-I have noticed that deposits aren’t immediately reflected in your list of transactions, although the balance is properly adjusted; it can take several minutes for the deposit to appear

-you get a lot of products pushed at you while using the app or website

On My Radar

I keep minimal savings at one of the big banks — it’s money that will be parked only for a short while. The big banks are uncompetitive with the interest they pay on savings, but one small exception has just emerged. Bank of Nova Scotia’s new Scotia High Interest Savings Account offers rates that are based on the value of a client’s total relationship with the bank.

The bank considers balances in chequing and savings accounts, GICs and mutual funds in setting your savings rate. Once you hit $10,000 you start earning 0.75 per cent on your savings — less than that and you earn zero. There are three more tiers that take you to a rate of 2.2 per cent on total Scotiabank balances of $500,000 or more. That rate applies on the whole amount you have in your savings account.

Other big banks typically pay 0.45 or 0.6 per cent at best on savings.

Tune In

Gospel musician Brother Wallace has a new album that caught my attention with its title, Electric Love. What we have here is a vintage soul sound that comes together perfectly on Who Do You Love? Me, I love the horns that power the end of this song.