Want to take advantage of rising interest rates? Open a new savings account

I opened a savings account the other day with a new player called Saven Financial that pays 2%. It took me about two minutes to open the account and a few more minutes to download and activate Saven’s mobile app.

That’s all the effort needed to take advantage of the bright side of rising interest rates. The latest generation of alternative banks and credit unions have an online account application process that allows you to get a working online account and application almost instantly.

You’ll still have to deal with the pathetically slow flow of money between banks – up to five days, Saven advises. But starting to achieve the best rates can be just a few minutes away.

As part of my job, I opened accounts with a wide variety of online banks. Saven was added to the list because he is new and had the best high interest savings account rate recently. Find the highest rates for yourself by trying these three resources:

1.) HighInterestSavings.ca: A database of alternative banks and credit unions with the best rates. Click on the “Rate” column header and get all players listed ranked from best to worst rate. This is how Saven’s 2% rate emerged ahead of a group of competitors offering 1.5-1.7%. This website also has an excellent GIC rate database.

2.) Cannex: A broader savings rate comparison that includes the big banks. Some new players like Saven and motusbank are not listed.

3.) Your bank: The big banks rarely rank among the rate leaders, but they do offer unusually good bonus rates on GICs and temporary savings promotions. For some people, the convenience of dealing with their usual bank makes up for not getting the best rate.

High rates do not add risk to savings accounts and GICs if you are covered by deposit insurance. Banks should be members of the Canada Deposit Insurance Corporation, while credit unions offer their own provincial deposit insurance plans.

Of course, I checked Saven. It is a division of FirstOntario Credit Union, which is insured by the Financial Services Regulatory Authority of Ontario. Under this plan, non-registered deposits are covered up to $250,000, while coverage for registered deposits like RRSPs and TFSAs is unlimited.


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Rob’s Personal Finance Reading List

Three clever ideas for your HELOC

Good old-fashioned advice on your home equity line of credit in light of rising rates. Use it for a home renovation? No – guess again.

Autopilot ETFs for retirement investing

A look at a new exchange-traded fund option for people accumulating their investments for retirement – ​​target date funds that automatically adjust their asset mix to become more conservative as you age.

Dealing with the cost of having children

An interesting discussion on Reddit sparked by this question: “How much did the finances of having kids influence your decision to have them or not?” For my wife and me, the answer is not at all. We bought our first house and started a family in the mid-1990s. Back then, children and homes were routine for young adults at the start of their careers. Now, not so much.

The cheapest house in the Toronto area has sold

OK, it’s a remodeled caboose, not a house, and it’s not hooked up to water or sewer lines. But what did you expect for a sale price of $45,000?


Questions and answers

Q: Is it best to wait until age 70 to start taking CPP?

A: Here are some of the latest stories we have aired on this much-discussed topic:

Should retirees struggling with runaway inflation further delay taking CPP until age 70?

Few Canadian seniors are deferring their retirement benefits, when it could mean tens of thousands of extra dollars

The case for deferring your CPP benefits is stronger than ever

Do you have a question for me? Send me. Sorry I can’t answer each one personally. Questions and answers are edited for length and clarity.


Today’s financial tool

A series of videos for novice investors on basic concepts like risk, diversification, fees and more. From the British Columbia Securities Commission.


The cashless zone

I just listened to the Chambers Brothers 1966 album The time has come today for this first time… and the second and the third. 60s soul fans, this is all good. This is the Chambers’ signature song, The time has come today.


what i wrote about

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