One of the biggest obstacles facing financially responsible folks today is the lack of yield on savings vehicles. It’s hard to get ahead when your bank pays you 50 cents annually for every hundred dollars invested.
Savers who do a little shopping around can do much better than the rates offered by Canada’s biggest banks. Various upstarts offer yields of more than 2% with full deposit insurance coverage. You’ll never have to worry about losing a penny of your principal.
Here are three ways regular folks can really supercharge their savings.
Oaken Financial
Oaken Financial is a division of Home Capital Group (TSX:HCG), Canada’s largest subprime lender. It offers some of the highest GIC yields in Canada because it needs funding sources for its mortgage products.
All GICs longer than one year invested with Oaken pay more than 2% annually. Five-year GICs pay as much as 2.75%. Minimum deposits are $1,000.
EQ Bank
EQ Bank--which is a division of Equitable Group Inc. (TSX:EQB)--offers 2.25% on their high interest savings account. This account also offers no monthly fees, unlimited transactions, and five free Interac e-transfers per month. EQ Bank has no minimum account size either.
Hubert
Hubert is an online-only bank owned by Sunova Credit Union in Manitoba, and all deposits are guaranteed by the Government of Manitoba.
Hubert pays 1.7% on its high interest savings account, a respectable rate. But it really shines with its GIC offerings, paying 2% annually on a two-year term. Rates go as high as 2.3% over five years. Minimum GIC deposits are $1,000.
