Best Online Savings Account Interest Rate

Best Online Savings account Interest Rate

The latest spawn of the internet seems to be the proliferation of virtual banking and robo advisers. This has seriously disrupted the personal finance world. Major old world banking institutions everywhere are closing branches and laying off staff. It reminds me of the early days of video stores and how all the big box retail video chains sought to lower rental prices to extreme levels to put all the Mom and Pop operations out of business. As soon as they couldn’t afford to compete on price they were gone. When that happened the majors raised prices immediately and cornered the market.

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Could the same thing happen in reverse with virtual online banking. Those banks that exist in limited brick and mortar form so they can afford those very enticing savings interest rates. Could they really force banks to raise the savings rates they offer consumers? The banks will certainly lose market share for this service and don’t even come close to what these online banks have to offer.

I’m not concerned with what products and services these online/virtuals have to offer. I always say if you bank in a grocery store you can’t expect great service but they do have great rates.

I’m just concerned about MONEY. How much do they offer you for parking your money with them. These seemed to be the best I could find.

These are the posted rates as of 10 December 2016.

Tangerine – 2.4 % Any new client.

PC Financial – Promotional rate of 2.25%

Zag Bank – Current Rate 1.65%

Equity Bank – Current Rate 2.0%

Oaken Financial – Current Rate 1.5%

Hubert Financial – Current Rate 1.7%

Canadian Financial Direct – Current Rate 1.5%

Implicity Financial –  Current Rate 1.7%

Outlook Financial- Current Rate 1.7%

Achieva Financial –  Current Rate 1.7%

And the winner is Tangerine with a Strong Runner Up finish to PC FinancialTangerine is #1 Daily Interest Savings Rate

I will always keep this post updated with the new rates on offer so check back often. Savers have been crushed for the last 20 years but the worm is starting to turn back into our favour. Rates are going up for borrowing, everyone including the new president-elect is calling for it. That means savings rates will also start to climb. It’s about time.

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14 thoughts on “Best Online Savings Account Interest Rate

  1. I agree with you on that Peter. The past so many years have been really bad for savers and I think it is high time that the tide turns in our favor. I am sure that as lending rates go up so will interest on savings. Banks will have to be more competitive if they want to survive. And virtual banks are sure giving them very tight competition.

    By the way I clicked on your link and I think it creating an online business is the way to go these days. Great stuff.

    • I agree Kathy. It’s kind of a double edge sword with interest rates and borrowing costs going up. I think it will be more healthy for the whole economy if rates go up. Thanks for dropping by:)

  2. They should in fact provide better interest rates. many persons have been saving with banks for years and don’t make a good interest on their savings. However if you should borrow a loan the interest rate would be high. I will definitely follow this website for the updates

  3. I remember when that happened with Video stores. One day they were around and the next thing you know they were gone. The same could be coming for banks as well. Everyone likes the convenience of online banking. And now with better savings rates it makes it more enticing.

    • It will take another 10 years but I think traditional brick and mortar banks will be a thing of the past. Thanks for your comment Erin.

  4. It is very timely that I visited your site at this time. I have been trying to find a better alternative to your regular savings and loan. I haven’t researched this but maybe I have to. Do theses online institutions offer checking accounts Great info, and to hear that it is updated regularly is a plus.

    • Most do offer chequing also. There still is a wide disparity on what they are willing to give you for your savings. Thanks for your comment and question Maurice.

  5. Hi Peter,
    Your graphic at the top of the page (“Who Needs Banks? Banks) made me chuckle. Sad but true.
    I’m very familiar with PC Financial. I moved to it from TD Canada Trust years ago after realize I was paying TD every month just for the privilege of having an account. So I moved it, and have never had any issues.
    Keep up the great work.

    • Thanks for the kind words Kevin. I also love PC Financial and their MasterCard for grocery points. Shopping around for the best rates is the prudent thing to do.

  6. The list of banks you posted with their rates is very helpful. Almost everyone likes the accessibility of online banking nowadays with good rates and easy access via the world wide web. I clicked on your link and somehow it is true the online business is the best way to start these days. It’s just like finding a suitable business you’re planning to start. It’s been easier to find an online business nowadays unlike the way you start the old days. I will follow this website for the updates. Great work.

    • Thanks Charred I hope you do. I think rates will stay the same into the new year and as the Fed raises borrowing rates we all hope savers too will be rewarded. Thanks for stopping by and leaving a comment.

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