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.