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12 December

The Other Rate Cut

At the end of October I took a look at the interest rates were on some high interest savings accounts. It seems that the interest rates on these accounts have quietly dropped since the Bank of Canada dropped the overnight target rate by 0.75% on December 9. Let's take a look at the interest rates from the end of October compared to now.

First on the list is the PC Financial Interest Plus Savings account. At the end of October it was paying a 3.05% interest rate for balances over $1000. Now that is down to 2.75%.

Next is ING Direct's Investement Savings Account. At the end of October it was paying 3% with no minimum balance. That rate has dropped to 2.70% now.

Back at the end of October I also looked at HSBC Bank's Direct Savings Account. It was paying 3% at the end of October with no minimum balance and it is paying 2.75% now but they seem to be offering a 1% bonus for new deposits.

I also took a look at ICICI Bank's HISAVE Savings Account which was paying 3.4% with no minimum balance and it is paying 3.10% now on Canadian dollar deposits (and 2.5% on US dollar deposits).

An interesting thing that I found while looking around at mortgage options for that mortgage post earlier this week is that Scotiabank has what appears to be a new savings account called the Scotia Power Save account. On balances of less than $5,000 this account pays no interest but on balances $5,000 and over it is currently paying 3%. So if you have more than $5,000 sitting in one of the other popular high interest savings accounts it looks like you can increase your interest payout by at least 0.25% by moving to this Scotiabank account (unless you are with ICICI bank). What would be very interesting is if Scotiabank offered a Tax Free Savings Account version of this account.

posted at 06:30:00 on 12/12/08 by 0xCC - Category: Personal Finance

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