Personal Finance

Digital Banks and the highest rates: HISA, TFSA, GIC?

  • Last Updated:
  • Aug 19th, 2019 9:21 pm
[OP]
Newbie
Jun 23, 2019
42 posts
12 upvotes
Coquitlam, BC

Digital Banks and the highest rates: HISA, TFSA, GIC?

Hey everyone,

I am a novice without an income right now, but I do have 18,000USD in a TD US Account. I also have another everyday account with TD with $5000CDN.

With TD, the interest rates are low, and inflation is at 2% right now.

I am interested in countering inflation to protect my purchasing power for the future.

I mostly use cash (instead of a debit card) and online shopping using a credit card (from TD).

I am not against online banking that uses ATM's, especially considering I may be closing my TD accounts.

I am considering a Tangerine Credit Card to replace my TD Visa card (unless you have a better recommendation)?

I am mostly seeking your recommendations for a HISA, TFSA, GIC?

From my research I discovered:

-EQ Bank HISA @ 2.3%: https://www.eqbank.ca/personal-banking/features-rates

However, why bother with a HISA? Can't I just open a standard TFSA (since the interest earnings will be tax-free)?

-Motusbank TSFA @ 2.5%: https://www.motusbank.ca/Accounts/Savings

-Max Financial TFSA @ 2.45%: https://maxafinancial.com/rates/

-Motive Financial TFSA @ 2.4%: https://www.motivefinancial.com/Investments/TFSA

-Implicity TFSA @ 2.4%: https://www.implicity.ca/Products/TFSA/TFSASavings/

-Outlook Financial TFSA @ 2.4%: https://www.outlookfinancial.com/products/rates

-Ideal Savings TFSA @ 2.4%: https://idealsavings.ca/rates/

-Alterna Bank TFSA @ 2.35%: https://www.alternabank.ca/Personal/Eve ... unts/TFSA/

-Achieva Financial TFSA @ 2.3%: https://www.achieva.mb.ca/high-interest ... vings/tfsa

-Wealth One TFSA @ 2.3%: https://www.wealthonebankofcanada.com/P ... s/Savings/

-Hubert Financial TFSA @ 2.25%: https://www.happysavings.ca/rates/

-People Trust TFSA @ 2.25%: https://www.peoplestrust.com/en/peoples ... nts/rates/

-Accelerate Financial TFSA: https://www.acceleratefinancial.ca/products/tfsas

-Oaken Financial TFSA: https://www.oaken.com/gic-rates/

-Duca TFSA: https://www.duca.com/rates/term-deposits/

-SCU TFSA: https://www.scu.mb.ca/Rates

Note: Aside from the standard TFSA, some of these institutions offer TFSA Term Deposits (5 year) with higher rates (up to 3%). I am also interested in that.

And I am also interested in Long-term Tax-Free GIC's (with a comparable rate) but again not sure why I should bother with GIC's, if I can just go the TSFA route?

I'd also appreciate recommendations of what to do with my US funds? I don't want to just leave it in that TD account, as it's not doing anything for me there. And I don't want to exchange all of it (18,000USD) to CDN, because of the exchange rate. I will lose hundreds of dollars. So I am looking to transfer it out of TD into an online banking account, where it can perform better.

I'd like to do the same with with my $5000CDN.

My details: In my 30's, based in Vancouver.

Thank you!
8 replies
Member
Dec 20, 2006
404 posts
22 upvotes
York
TFSA > HISA if you still have room
Deal Guru
User avatar
May 8, 2009
11134 posts
7701 upvotes
South Pole
OP, my suggestions...
  1. cancel TD CT chequing account. Keep savings account at TD to maintain footprint (and your USD chequing account at TD)
  2. Your TD CT VISA is good for product switches (upgrade/downgrade the card) and potentially balance transfer promos if you ever hit a rainy day with heavy spend on cards at other FI's, and you'd need longer to pay off the balance
  3. Open Tangerine for the referral incentives. Move money in/out for their HISA promos if you like. Keep in mind that Tangerine can be trigger-happy on locking accounts for what they consider to be unusual behaviour
  4. For daily banking, consider Motive, Motusbank or even Simplii. Not saying Simplii has great rates, but they're super solid and no trolling, Motusbank has had somewhat of a rocky launch. Motive seems to take long to open accounts, but seems to be the better deal for chq/sav combo
  5. Since you like cash, do consider prepaid cards Koho and Stack. Only spend money you do have on these, they're no-fee prepaid cards and have their own set of promos
eBay profile| Motorola phone. Linux on 2xcomputers. Brew beer & wine @home.
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Member
Aug 15, 2009
428 posts
228 upvotes
Montreal
titaniumtux wrote:
Aug 18th, 2019 10:10 pm

Open Tangerine for the referral incentives. Move money in/out for their HISA promos if you like. Keep in mind that Tangerine can be trigger-happy on locking accounts for what they consider to be unusual behaviour
Can you comment more on this ?
Deal Guru
User avatar
May 8, 2009
11134 posts
7701 upvotes
South Pole
elpaso wrote:
Aug 19th, 2019 4:32 pm
Can you comment more on this ?
They locked my account for pushing a few k to a credit union. They locked another RFDer for doing big returns on their MC around Christmas. These are IMO normal consumer behaviour.
eBay profile| Motorola phone. Linux on 2xcomputers. Brew beer & wine @home.
DUCA thread | Simplii Account Linking | Make CCTS Claim | Max on Koodo Referrals Thread
Member
Aug 15, 2009
428 posts
228 upvotes
Montreal
titaniumtux wrote:
Aug 19th, 2019 4:57 pm
They locked my account for pushing a few k to a credit union. They locked another RFDer for doing big returns on their MC around Christmas. These are IMO normal consumer behaviour.
That's weird...

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