High Interest Online Bank Accounts
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  1. #1
    Registered User Array bandito's Avatar
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    High Interest Online Bank Accounts

    Hi,

    Anyone here opened accounts with places like EQ bank or Zagbank?

    From my reading and checking, they are CDIC insured... and the rates are very attractable compared to other banks.

    When your local one is paying under 1%, and you can get 2.5% to 3% that's pretty good.

    Just curious if anyone has any experience dealing with either of these, or similar. The best rate at a retail brick and mortar that I can find is 1.75% at CIBC.
    Long Live Shervin Of The North!

  2. #2
    Moderator Array CoolDaddyGroove's Avatar
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    You have to buy one of their special computers that lets you insert and withdraw cash. So any advantage in interest rates gets eaten up by your capital investment. Total sham.
    DON'T STUFF THE CAGERS!

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    We tried PC Financial a couple years ago for their high interest deal. What a waste of time that was and they ended up costing us more because of their incompetency. We had also opened a regular banking account. It was no end of hassle and they will nick you every chance.

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    Registered User Array cvrle1's Avatar
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    If you have some time to read, long thread on RFD about these banks:

    Zag Bank: http://forums.redflagdeals.com/zag-b...016-a-1821903/
    EQ Bank: http://forums.redflagdeals.com/eq-ba...hread-1916839/

    Scanning through them from time to time I did not see any mention of special computers. They require cheques to make a deposit, but like I said, i was scanning these threads. I could have missed computer part in there somewhere.

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    Registered User Array Steve G.'s Avatar
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    Quote Originally Posted by bandito View Post
    Hi,

    Anyone here opened accounts with places like EQ bank or Zagbank?

    From my reading and checking, they are CDIC insured... and the rates are very attractable compared to other banks.

    When your local one is paying under 1%, and you can get 2.5% to 3% that's pretty good.

    Just curious if anyone has any experience dealing with either of these, or similar. The best rate at a retail brick and mortar that I can find is 1.75% at CIBC.
    I just buy the shares of the big banks, and collect the dividends at 1/2 tax. When RBC says they made 1.2 Billion, I smile.

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    Registered User Array bandito's Avatar
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    Quote Originally Posted by Steve G. View Post
    I just buy the shares of the big banks, and collect the dividends at 1/2 tax. When RBC says they made 1.2 Billion, I smile.
    I'm into holding dividend equities as well, but if you want a balanced portfolio some fixed income is good... and if you can get 2.5 to 3% in a bank account at one of these "high interest" boutique e-banks, hell... that's a pretty good deal. Compare that to tbills, gics, and bonds... it's pretty attractive.

    But, the reading I have done shows it to be a bit of a hassle. I like to sleep at night, not worry about some bank that's difficult to deal with and move money around. No thanks.
    Long Live Shervin Of The North!

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    Registered User Array filterwrench's Avatar
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    Its not really a hassle to deal with the internet banks its actually less hassle than standing in line. moving money around is quite simple and there are enough of them now that if you pay attention you can get 2.5% most all the time just by moving your coin to which ever one is giving the best rate at the time.

  8. #8
    Registered User Array bandito's Avatar
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    Quote Originally Posted by filterwrench View Post
    Its not really a hassle to deal with the internet banks its actually less hassle than standing in line. moving money around is quite simple and there are enough of them now that if you pay attention you can get 2.5% most all the time just by moving your coin to which ever one is giving the best rate at the time.
    I don't have much confidence in a bank that I apply for an account, and it takes them 4 days to get back to me. That's not confidence inspiring at all when talking about dealing with a
    financial institution.
    Long Live Shervin Of The North!

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    Registered User Array bandito's Avatar
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    One thing I do note though, is the bank that was ING, now Tangerine and owned by Scotia Bank. It offers .80% on their "savings account", but there is a promotion going on
    where for the first 6 months you will receive triple interest, so 2.4%

    That's pretty good offer, and a bank that is CDIC insured and seems to have been around long enough that their isn't a bunch of customer services nonsense happening.
    Long Live Shervin Of The North!

  10. #10
    Registered User Array filterwrench's Avatar
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    ING was good for a long time but i think Scotia bank Tangerine screwed it up the deals are not as good now ...Zag Bank is now offering 2.5 on 2 year term RRSP.... thats the best I could find this year.I think Zag bank is swamped right now with a lot of new customers

  11. #11
    +1 Array schmii's Avatar
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    I have moved my tfsa and savings to various banks. Electronic movement may require a week or two and it's another log-in that isn't closely monitored. Canadian banks are all fairly secure and insured.

    https://www.highinterestsavings.ca/chart/

    That website's forum offers sound options for moving money around. It's a shame interest rates have tanked these last couple years.

    ... watch for fees.
    Last edited by schmii; 02-24-2016 at 01:20 PM.
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  12. #12
    Registered User Array bandito's Avatar
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    Quote Originally Posted by filterwrench View Post
    ING was good for a long time but i think Scotia bank Tangerine screwed it up the deals are not as good now ...Zag Bank is now offering 2.5 on 2 year term RRSP.... thats the best I could find this year.I think Zag bank is swamped right now with a lot of new customers
    Yeah, I looked at Tangerine, Zag and EQ. 2.4% for 6 months, 2.5% for 3 months and 3% indefinitely but subject to change.

    At any rate, better than leaving it at a brick and mortar and getting .55 or .60

    CIBC is offering 1.75% to the end of this month, not sure going forward.

    At any rate, it sounds like peanuts - and it is... but when a $1,000,000 money market through a broker is paying you 1.1% PLUS commission, you can see why people take advantage. Those are great rates if you want capital security and income.
    Long Live Shervin Of The North!

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    Registered User Array MrCheeky's Avatar
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    Quote Originally Posted by bandito View Post
    I like to sleep at night, not worry about some bank that's difficult to deal with and move money around. No thanks.
    Given that you don't like hassle, why bust a nut with all the shopping around? Using say a $50,000 deposit, 0.8% gets you $400 while 2.5% gets you $1,250, a $850 difference. The difference between the two rates with a $20,000 deposit is only $340. Also, it's interest so will be taxed at a higher rate (than say dividends). While we all need some cash for short term things, is it really worth the hassle to shop around?
    "There's probably no god. Now stop worrying and enjoy your life"

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    Registered User Array bandito's Avatar
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    Quote Originally Posted by MrCheeky View Post
    Given that you don't like hassle, why bust a nut with all the shopping around? Using say a $50,000 deposit, 0.8% gets you $400 while 2.5% gets you $1,250, a $850 difference. The difference between the two rates with a $20,000 deposit is only $340. Also, it's interest so will be taxed at a higher rate (than say dividends). While we all need some cash for short term things, is it really worth the hassle to shop around?
    It is if you consider fixed income part of a balanced portfolio.

    Why would you take 1.1% on money market when you can double that and a half? Money is money.

    Taxation of course needs to be considered.
    Long Live Shervin Of The North!

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    Insert User Title Here. Array TripleTime's Avatar
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    No expert here, but by the time you factor inflation, isn't +/- 1% actually probably putting you backwards on your money?

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