Personal Finance

Looking to set up a liquid high interest savings plan, need advice

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  • Apr 27th, 2019 11:55 pm
[OP]
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Looking to set up a liquid high interest savings plan, need advice

I'm looking to set up a savings plan for several years that would get good interest but no risk of capital loss and i'm not looking to do any bank hopping.
The idea is to put 6-8K a year into it and save for a large purchase about 5-7 years from now but may need to tap it a couple times for 1-3K.
I suspect i wont be able to get 3% interest for that many years at one institution but where would be good to open an account that would get the best possible without locking in all of it (locking some may be an option) and without too much hassle beyond opening an account?
TD and RBC are already in use so ideal for simplicity but others are fine also if the extra returns will make it worth the trouble

TIA
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Quentin5 wrote:
Mar 30th, 2019 2:58 am
I'm looking to set up a savings plan for several years that would get good interest but no risk of capital loss and i'm not looking to do any bank hopping.
The idea is to put 6-8K a year into it and save for a large purchase about 5-7 years from now but may need to tap it a couple times for 1-3K.
I suspect i wont be able to get 3% interest for that many years at one institution but where would be good to open an account that would get the best possible without locking in all of it (locking some may be an option) and without too much hassle beyond opening an account?
TD and RBC are already in use so ideal for simplicity but others are fine also if the extra returns will make it worth the trouble

TIA
EQ or alterna Will give you 2.3/2.35 with no bank hopping.
Alternatively, you could set up a GIC ladder.
Keep in mind that interest is all taxable at your marginal rate unless it's in a TFSA.
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Aug 4, 2018
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Quentin5 wrote:
Mar 30th, 2019 2:58 am
I'm looking to set up a savings plan for several years that would get good interest but no risk of capital loss and i'm not looking to do any bank hopping.
The idea is to put 6-8K a year into it and save for a large purchase about 5-7 years from now but may need to tap it a couple times for 1-3K.
I suspect i wont be able to get 3% interest for that many years at one institution but where would be good to open an account that would get the best possible without locking in all of it (locking some may be an option) and without too much hassle beyond opening an account?
TD and RBC are already in use so ideal for simplicity but others are fine also if the extra returns will make it worth the trouble

TIA
GIC laddering for 3+ % should be good for you if really focused more on safety, averse to any risk in aggressive growth strategy and okay with losing some flexible access from HISA.
If truly hassled by "bank hopping", you also mean transferring around for the convenience of anytime debits like automatic PAPs (twice or more per month unexpectedly) worries/bothers you, dislike restrictions by most HISAs accepted by others, and/or prone to forgetting/mis-managing transfers in future and realize the fees charged by HISAs allowing you to debit/withdraw any time as many times as you want, then zero fee Manulife Advantage hybrid chequing-savings account without "a minimum $1,000 balance" like the suggested free Alterna eSavings comes close with their competitive 2.35% interest and free unlimited Me-to-Me external links (like to TD, RBC, etc.), mobile cheque photo deposits, bill payments, transfers (Interac e-Transfers too) and debits including free Exchange ABM withdrawals unavailable on EQ hybrid HISA.
If you just want to open simply one other account whether from QC or not then Alterna eSavings' Exchange network access through National Bank, Manulife Bank, Laurentian Bank, HSBC, Canadian Western Bank, Meridian CU, Alterna Savings CU and many other CUs (Credit Unions) operated ATMs (like at Mac's, Couche-Tard and Circle K stores) would complement your TD and RBC ABM access should you wish to "tap" access your money this way without (again) transferring out every time.
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Quentin5 wrote:
Mar 30th, 2019 2:58 am
I'm looking to set up a savings plan for several years that would get good interest but no risk of capital loss
Well, there isn't one, sorry. Interest rates are low, and will likely remain so for the foreseeable future.

You can hop around to get an additional 0.5%-1%, but that's still low. If you want a decent return you'll have to take on a bit of risk.
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M8Rxmjsik wrote:
Mar 30th, 2019 2:07 pm
Well, there isn't one, sorry. Interest rates are low, and will likely remain so for the foreseeable future.
That's always my first thought when seeing references to "high interest" savings accounts particularly when I used to have S35 Canada Savings Bonds. :(
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EQ Bank, easy to use, free interac e-transfers so you can access up to $3K in minutes, and you can set up your deposits and pay your bills there all from the savings account.
Keep an eye out for the Motus Bank launch in a few weeks also which may offer a lot of the same plus exchange ATM access.
https://www.eqbank.ca/index
https://www.meetmotusbank.ca
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[OP]
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danishh wrote:
Mar 30th, 2019 3:22 am

EQ or alterna Will give you 2.3/2.35 with no bank hopping.
Alternatively, you could set up a GIC ladder.
Keep in mind that interest is all taxable at your marginal rate unless it's in a TFSA.
The ladder seems useful here.
EQ looks interesting and i checked Alterna's site and they don't seem to mention their interest rates.
There is probably TFSA room available

U08052018 wrote:
Mar 30th, 2019 8:00 am

GIC laddering for 3+ % should be good for you if really focused more on safety, averse to any risk in aggressive growth strategy and okay with losing some flexible access from HISA.
Is there 3+% available in 1-2 year terms?
If truly hassled by "bank hopping", you also mean transferring around for the convenience of anytime debits like automatic PAPs (twice or more per month unexpectedly) worries/bothers you, dislike restrictions by most HISAs accepted by others, and/or prone to forgetting/mis-managing transfers in future and realize the fees charged by HISAs allowing you to debit/withdraw any time as many times as you want, then zero fee Manulife Advantage hybrid chequing-savings account without "a minimum $1,000 balance" like the suggested free Alterna eSavings comes close with their competitive 2.35% interest and free unlimited Me-to-Me external links (like to TD, RBC, etc.), mobile cheque photo deposits, bill payments, transfers (Interac e-Transfers too) and debits including free Exchange ABM withdrawals unavailable on EQ hybrid HISA.
If you just want to open simply one other account whether from QC or not then Alterna eSavings' Exchange network access through National Bank, Manulife Bank, Laurentian Bank, HSBC, Canadian Western Bank, Meridian CU, Alterna Savings CU and many other CUs (Credit Unions) operated ATMs (like at Mac's, Couche-Tard and Circle K stores) would complement your TD and RBC ABM access should you wish to "tap" access your money this way without (again) transferring out every time.
The tired cliche of its for a friend usually means the person just doesn't want to say its for them but in this case its actually not for me and the idea is moving the money regularly is not gonna fly with them.
The withdrawals would be once a year or so (think vacation) not for bills or daily use or stuff like that.

M8Rxmjsik wrote:
Mar 30th, 2019 2:07 pm

Well, there isn't one, sorry. Interest rates are low, and will likely remain so for the foreseeable future.

You can hop around to get an additional 0.5%-1%, but that's still low. If you want a decent return you'll have to take on a bit of risk.
Others seem to have options. In my case i have a Simplii account that pays 3% on new deposits only so its a sham. But others have mentioned DUCA, Meridian and a few others recently and if it was just a matter of shifting money around from promotion to promotion i would not have posted this thread.
Conquistador wrote:
Mar 30th, 2019 2:16 pm
That's always my first thought when seeing references to "high interest" savings accounts particularly when I used to have S35 Canada Savings Bonds. :(
Indeed :D
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if you are in ontario

DUCA for 3%
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Quentin5 wrote:
Mar 31st, 2019 5:43 am

Is there 3+% available in 1-2 year terms?
E.g., Ideal Savings 3.01% 1-year, 3.11% 2-year
Quentin5 wrote:
Mar 31st, 2019 5:43 am


The tired cliche of its for a friend usually means the person just doesn't want to say its for them but in this case its actually not for me and the idea is moving the money regularly is not gonna fly with them.
The withdrawals would be once a year or so (think vacation) not for bills or daily use or stuff like that.



Others seem to have options. In my case i have a Simplii account that pays 3% on new deposits only so its a sham. But others have mentioned DUCA, Meridian and a few others recently and if it was just a matter of shifting money around from promotion to promotion i would not have posted this thread.


Indeed :D
Forgot different people, interpretation, and scales/situations exist in our RFD multiverse Smiling Face With Open Mouth And Smiling Eyes; but for non-daily savings use like vacation, greedily take more capital gains than losses and interest transferring those savings money for direct "growth" purchases (not GIC nor HISA). Perhaps repondents save for those purchases similarly but rates/levels that risk is tolerated may differ from OP in this case preserving value less growth over time.
M8Rxmjsik wrote:
Mar 30th, 2019 2:07 pm
You can hop around to get an additional 0.5%-1%, but that's still low. If you want a decent return you'll have to take on a bit of risk.
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danishh wrote:
Mar 31st, 2019 12:11 pm
Sorry, not sure it was clear I meant Alterna Bank, which is Alterna Savings' online bank.
Their rate is listed on this page: https://apply.alternabank.ca

Here are their term deposit rates : https://www.alternabank.ca/viewport/mob ... mDeposits/

Not sure they have GICs.
Thanks
mecassa wrote:
Mar 31st, 2019 2:06 pm
if you are in ontario

DUCA for 3%
I saw the thread, i might have to rethink where my own non registered funds are
Thanks
If that site is updated regularly then its worth keeping bookmarked and watching for new deals.


Forgot different people, interpretation, and scales/situations exist in our RFD multiverse Smiling Face With Open Mouth And Smiling Eyes; but for non-daily savings use like vacation, greedily take more capital gains than losses and interest transferring those savings money for direct "growth" purchases (not GIC nor HISA). Perhaps repondents save for those purchases similarly but rates/levels that risk is tolerated may differ from OP in this case preserving value less growth over time.
I'm confused at what your trying to say here
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If your friend is OK with online banking and a Manitoba Credit Union, I would go with Hubert. You can get 3.55% for a 4 year GIC, 3.50% for 5 years. For 3 consecutive months, I would buy 3 of their 1 year GICs, cashable quarterly. That way, every month you have one that is available for the 1 - 3K liquidity you mention. If you hold it maturity, the 1 year GIC currently will pay 3%.
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akaManny wrote:
Apr 3rd, 2019 9:45 am
If your friend is OK with online banking and a Manitoba Credit Union, I would go with Hubert. You can get 3.55% for a 4 year GIC, 3.50% for 5 years. For 3 consecutive months, I would buy 3 of their 1 year GICs, cashable quarterly. That way, every month you have one that is available for the 1 - 3K liquidity you mention. If you hold it maturity, the 1 year GIC currently will pay 3%.
Very interesting.
For now the 3% for 3 months RBC is what i am going to recommend which will allow some time to decide on other options.
As for my non registered money i am undecided but i just made my contribution to my registered for the year so its not a lot to speak of anyways.
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Quentin5 wrote:
Apr 8th, 2019 12:28 pm
Very interesting.
For now the 3% for 3 months RBC is what i am going to recommend which will allow some time to decide on other options.
As for my non registered money i am undecided but i just made my contribution to my registered for the year so its not a lot to speak of anyways.
OK, but in a dropping interest rate environment, you likely will lose out. The Hubert GIC rates 2 - 5 years have dropped since my post, as have the Oaken rates. After earning 3% for 3 months, your options likely will be lower rates.

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