Best savings account?

[wolverine]

I've been working on my tax return tonight, and it looks like I'm going to get back a few grand! Being a pooner, it's tempting to go and blow it all on SPs. But I think I'd rather stick it into a high-interest savings account. But which one?

ING and President's Choice look tempting with their 3% rates. Despite the annoying Dutchman in their TV ads, ING appears to be less restrictive than the other. But are they for real, or have people encountered any problems with them?

Most of the Big 5 offer fuck-all, but that is to be expected. I think Scotia offers something close to an ING-type rate, but will need to investigate further.

ATB Financial, CWB: somewhere between the Big 5 and the INGs.

Any other financial institutions I'm overlooking?

 

[chiefwiggum]

**Hand in my pocket, hand in my pocket, hand in my pock-et....**

 

[smackyo]

i'm with ing and they are great. they offer lots of other things too besides a good savings account. i try to as much banking through them as possible. the only reason i keep my cibc account is for the convenience of instant tellers.

with ing you really do see your money growing (sorry to cliche the commercial).

 

[Smother]

Ya..I've had Petro canada stock for about 10 months now and it's done wonders for me.....i mean awesome....
I had another canadian energy stock just before Petro...held it for just over 2 years....symbol.....CNQ..wicked!!
Energy has done wonders for me in the last 3 - 4 years!!

but seriously... wolverine ...I've had this fund for 1.5 years now...33% return so far...
Take a look at CIBC monthly income fund......it's a good one....medium risk...and reinvests the monthly payouts....
Check it out...I think you'll like it...as long as you have at least a 2 year horizon..... let me know what you think..

Cheers.

 

[Big Trapper]

Despite the annoying Dutchman in their TV ads, ING appears to be less restrictive than the other. But are they for real, or have people encountered any problems with them?

International Netherlands Group Bank (ING Bank) is the second largest bank in Holland. They're for real all right!

 

[gravitas]

wolvie,

check the cdic site as it has a lot of links to the various banks and has some good content.....as for where you park your money about the best advice I can give is to get yourself informed about the different choices and find something you're comfortable with

for myself...most of my personal banking canadian western and they've always treated me very well.....good mix of products and decent rates

http://www.cdic.ca/?id=5

 

[asf_post]

Recycle

Whichever savings/bonds/mutual fund you choose, if you can part with your refund (ie. don't need the $ to be liquid), put it in RRSP. You'll get more return next year. Of course, this depends on whether you can still contribute if you have enough room.

 

[Scarlett]

I have an ING account and I loves it.

The customer service is fantastic, and the interest rate is not bad at all.

If you open with ING, get a referral, because then you get a $13 bonus. $13 is better than $0, right?

 

[Damien Jones]

Another option

Hi Wolvy

Altamira, now owned by National Bank, also offers a High Intereset Saving Account called CashPerformer which offers 3.25%. This is also RRSP eligible. They also offer a Global Blue Chip Note which has its principal guranteed at maturity. However the time horizon is 8 years.

http://www.altamira.com/altamira_en/funds/categories/linked+notes/altamira+global+blue+chip+note.htm

D

 

[threepeat]

Lots of good advice from the other posters, but let me just add a couple of other options:
* CIBC (and I'm sure the other chartered banks) have a flexible GIC where you can pull out your money any time. If you invest it for at least 30 days, you will get the full annual interest rate pro-rated for the length of time you had the money invested. I think the current rate for the Flexible GIC is 2.35%. Not a lot, but it's within striking distance of the ING account.
* For conservative-yet-still-high-returns, check out the Monthly Income Mutal Fund by Royal Bank: http://www.rbcfunds.com/pdf/information/rmfmi.pdf
I have money in this fund and I'm really happy with it. I think it's noteworthy that the 5 year average annual return was a decent 11.3%, and still managed positive returns during the bear years of 2001 and 2002.

 

[wolverine]

I should point out that I want that money to be accessible whenever I need it. That's why I'm primarily looking at savings accounts. I've already got enough coin going into RSPs and mutual funds hence the big refund I'm getting (but thanks anyway). The term deposits and GICs are a good idea though.

 

[Damien Jones]

Thanks Threepeat

With a MER of 1.17 and its performance over the last few years the Monthly Income Fund is not bad at all. Thanks Threepeat, I should take a look...

D

 

[gravitas]

The tax implications are not favourable either.

Just curious and not trying to piss on your idea but how does a interest bearing savings account have negative impact on your taxes. At worst you'll have to declare negligible interest income on your T1. Wolvie has already indicated he's not looking for an investment just a place to park his cash.

 

[Rod Steel]

The best one I've found so far is ING's Investmnt Savings account.

 

[wolverine]

Just curious and not trying to piss on your idea but how does a interest bearing savings account have negative impact on your taxes. At worst you'll have to declare negligible interest income on your T1. Wolvie has already indicated he's not looking for an investment just a place to park his cash.

Exactly.
In the past I have squirrelled my money away into Canada Savings Bonds via payroll deductions. At 2% it's not a great investment but it is another solid savings mechanism that you can use as an emergency stash and can withdraw from anytime (although there's a 3-day turnaround). But the interest income from CSBs have had minimal impact on my tax return refunds.

 

[wolverine]

Update:
After reviewing the responses here and talking to some other people, I have decided to sign up for ING's Investment Savings Account. And I may even decide to put my tax refund into their Short and Sweet GIC.

Thanks all for your feedback.

 

[LonelyGhost]

Update:
After reviewing the responses here and talking to some other people, I have decided to sign up for ING's Investment Savings Account. And I may even decide to put my tax refund into their Short and Sweet GIC.

Thanks all for your feedback.

http://www.coastcapitalsavings.com/Personal/Banking/Chequing/FreeChequingAndMoreAccount

I went from ING to these guys ... ING was fine for savings, but few bank machines, had to transfer every time i wanted the money and the piddly interest was eaten by service charges at OTHER banks ...

this one at least lets me do all my banking for free ... and that's worth a piddy 2% savings rate!

 

[ironchef]

hey, ING has their $13 referral bonus for the person that refers and the person opening the new account......helps the pooning cost

 

[Maury Beniowski]

One problem with savings accounts is they don't keep up with the inflation rate, and the tax on the resultant yields. So you end up losing money, or worse, pay the bank for parking your money there. Another problem is the amount wolverine wants to place is not going to raise eyebrows in the investment community, so he's caught between a rock and a hard place. If he's willing to put in some time researching the markets, he may find something that can help him achieve his goal. If he wants short term, high yields/losses, he might consider a "highly" risky placement in a mining stock, or like some have suggested, an energy stock, but I don't sense a mad streak in him, and with the small amount he has coming, he might just as well put it in a flex-rate GIC available at most banks or credit unions.

 

[gravitas]

ING has their $13 referral bonus for the person that refers and the person opening the new account......helps the pooning cost

ya, and that's only helpful for hitrack