Personal Finance

The Official RFD thread for Savings Accounts! (Updated 08/03/2018)

Member
May 12, 2009
222 posts
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Toronto
Are there any financial institutions offering compound interest? I found some will offer 3% interest with no compounding. If there are some that do I wouldn't mind leaving money there for longer period of time.
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Jan 7, 2002
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serbianbelle wrote:
Dec 1st, 2018 10:38 am
Are there any financial institutions offering compound interest? I found some will offer 3% interest with no compounding. If there are some that do I wouldn't mind leaving money there for longer period of time.
Presumably you don't mean compound interest for HISAs since the interest gets paid into the account every month, i.e. is compounded.

Compound interest GICs tend to be rare now that CRA requires people to pay tax on accrued interest every year even though nothing actually gets paid until maturity. (In the past the accrued interest wasn't taxed until actually paid, perhaps several years later.) Of course this doesn't apply to tax sheltered accounts like RRSPs and TFSAs.

That said, with interest rates set to rise, it may be a better idea to get conventional annual interest rate GICs then reinvest the interest payments every year at hopefully higher rates,
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Member
May 12, 2009
222 posts
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Toronto
Thank you, I'm not as well informed as you are. I recall years ago putting money in GIC with compound interest and getting good returns. This was how I saved money for my children's' education. It worked very well. I want to know how I could set some money aside for my grandchildren when they are ready to go to university. Not quite sure how to proceed?
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Jan 7, 2002
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serbianbelle wrote:
Dec 1st, 2018 11:22 am
I want to know how I could set some money aside for my grandchildren when they are ready to go to university. Not quite sure how to proceed?
Governments have programs to help with that. See Registered Education Savings Plan. I'm not familiar with the details of RESPs. There may be a thread about them and other education-savings options on RFD. If not, you could start one.

See also:
Registered Education Savings Plan
Education Savings for Your Child
RC4092 Registered Education Savings Plans - Canada.ca
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serbianbelle wrote:
Dec 1st, 2018 11:22 am
Thank you, I'm not as well informed as you are. I recall years ago putting money in GIC with compound interest and getting good returns. This was how I saved money for my children's' education. It worked very well. I want to know how I could set some money aside for my grandchildren when they are ready to go to university. Not quite sure how to proceed?
bylo wrote:
Dec 1st, 2018 11:33 am
Governments have programs to help with that. See Registered Education Savings Plan. I'm not familiar with the details of RESPs. There may be a thread about them and other education-savings options on RFD. If not, you could start one.

See also:
Registered Education Savings Plan
Education Savings for Your Child
RC4092 Registered Education Savings Plans - Canada.ca
This, but definitely coordinate with the parents on RESP's, as their are contribution tiers/caps on government top-up's. Still has to be low to no risk investments to qualify for government contributions.

@serbianbelle if you're set on GIC's, Omni Direct seems to have the best deal for 1 yr (3.4%). They're a CU subsidy, open to Ontarians who are outside parent CU's footprint in Windsor-Essex.
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Whats the current best HISA rate we can get for quebec residents?
Tangerine wont budge over 2.5% for me....
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Mcklain wrote:
Dec 2nd, 2018 6:48 pm
Whats the current best HISA rate we can get for quebec residents?
Tangerine wont budge over 2.5% for me....
elpaso wrote:
Dec 2nd, 2018 7:12 pm
Look here https://www.highinterestsavings.ca/chart/

Not much for Qc residents...
Perhaps TING knows that too and adjusts their "best" HISA rates for QCers accordingly.
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Oct 4, 2009
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bylo wrote:
Dec 2nd, 2018 8:45 pm
Perhaps TING knows that too and adjusts their "best" HISA rates for QCers accordingly.
Nope, getting 3.15% here.

Plenty of options for QC residents, RBC 3.15%, CIBC 3%, etc. I also have Simplii 3.15% but that’s grandfathered from PCF days and access seems shut down these days.

Can’t recall ever seeing this many HISA promos.
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Mcklain wrote:
Dec 2nd, 2018 6:48 pm
Whats the current best HISA rate we can get for quebec residents?
Tangerine wont budge over 2.5% for me....
The best HISA's are primarily in Manitoba, and only some are QC friendly. Working down the list...
  • Steinbach is QC friendly, but they're best for TFSA (especially if using until end of year). $3 fee to withdraw for TFSA
  • Hubert, IdealSavings, AcceleRate are not QC friendly
  • EQ Bank is also no-QC
  • Achieva is definitely QC friendly, looks like so is Implicity
  • Motive Financial is no-QC
  • Meridian is QC friendly

Tangerine will only give you 3+% promo interest if you empty them out. Other QC friendly options aren't really part of musical chairs, but they can be decent "fallbacks". SCU only interesting if you'll leave the funds in there until year end (treat it like a GIC). Achieva Financial should be your bottom line. At 2.4% interest +$1/month for paperless, it's a no-brainer. Implicity would just be another place to store funds, with no real advantage over Achieva. Meridian might be part of musical chairs, but usually only for new members. For existing members, they usually only offer promo rates on GIC's, but minimum GIC funding at Meridian is $100.
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S5 wrote:
Dec 3rd, 2018 3:47 am
Nope, getting 3.15% here.

Plenty of options for QC residents, RBC 3.15%, CIBC 3%, etc. I also have Simplii 3.15% but that’s grandfathered from PCF days and access seems shut down these days.

Can’t recall ever seeing this many HISA promos.
Where are you seeing RBC 3.15%? Cant find anything on that promo...
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Oct 1, 2004
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bylo wrote:
Nov 15th, 2018 5:43 pm
It's true that CDIC doesn't insure US funds. US$ investments in brokerage funds is insured to the extent that they're covered by What Does CIPF do for Investors? This is hardly the same as CDIC.

If insurance is important to you then you have another option inside a brokerage account. If you buy US$-denominated bonds, including short term bonds, issued by the Government of Canada, then your money is guaranteed by Ottawa. This is actually better than CDIC since there's no limit on the amount insured. Likewise if you buy US$-denominated bills, notes and bonds issued by the US Treasury then your money is guaranteed by Uncle SamDonald (not the Duck.) Interest rates are generally commensurately lower to reflect the lack of maximums and lower risk than even CDIC.
thanks for the suggestions, can you provide some tickers to search? Or is there a chart to see % of return of the bonds?
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greg123 wrote:
Dec 3rd, 2018 10:08 am
thanks for the suggestions, can you provide some tickers to search? Or is there a chart to see % of return of the bonds?
1. You'd have to contact your broker to see what they have available. Some discount brokers list their bond inventory on their website and let you buy those bonds online.

2, You might consider buying Exchange Traded Funds (ETFs) that invest in US government bonds. This requires some research into ETFs that's beyond the scope of this thread. For instance look at U.S. bond ETFs -- Treasury/Agency. These trade on the NYSE so are available at all Canadian brokers.

3. The US Treasury sells bonds directly to the public, at least in the US. I'm not sure if they will sell to people outside of Canada. Google for more info.

Keep in mind that these securities, unlike HISAs and GICs, do fluctuate in value as interest rates change. Over the long term this will average out. But in the short term, especially now with interest rates rising, there's probably a greater probability of decline than in the past few years.
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Jun 3, 2018
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I believe RBC promo ended November 30th, it was 3% (went up to 3.15% after BOC raised interest) for 6 months on a new e-savings account opened by November 30th. Anyway, not relevant anymore.

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