We have had several clients inquire about the best short-term savings options for cash on-hand.

There are multiple investment vehicles available, such as basic savings, savings accounts via our advisor channel, and guaranteed investment certificates (GICs). Here are some of the top rates depending on the specific savings vehicle. All rates effective as of the date of this posting.


Basic Savings Accounts (Physical/Virtual Banks)

Basic savings accounts are best used in situations where you expect to require funds in the immediate term (<6 months) or for strategies such as emergency savings, where you may require funds quickly.

Here is a sampling of the top rates from Canadian physical & virtual banks.

Equitable Bank: Equitable Bank offers a high interest savings account with a 1.70% rate. There is no minimum deposit, and the maximum deposit is $200,000.

Oaken Financial: Oaken Financial offers a high interest savings account with a 1.50% rate.

Alterna Bank: Alterna Bank offers a high interest savings account with a 1.40% rate.

Manulife Bank: Manulife offers their Manulife Advantage account, and it currently pays 0.25%.


Promotional Savings Account Rates (Physical/Virtual Banks)

Tangerine Bank: Tangerine has a promotional rate of 2.50% for five months for NEW accounts. There is no minimum deposit and the maximum deposit is $1,000,000.


Investment Savings Accounts (You First Advisor Channel)

These are some of the options we have available through the advisor channel. Purchasing into these ISAs would be done through You First. We can set these accounts up with a simple signature from you.

Dynamic Funds: Dynamic’s Tiered Investment Savings account currently pays 0.40% (no minimum or maximum deposit restrictions). USD savings available.

National Bank: National Bank’s Altamira Cash Performer account currently pays 0.50%. Minimum deposit amount is $1,000. USD savings available.


Guaranteed Investment Certificates (GICs)

GICs are best used when you know you’ll need a specific amount on a specific date and are willing to lock your money in for a specific time period. Usually, you receive a rate premium versus basic savings in exchange for reduced flexibility. The following are the top non-redeemable rates available, depending on the term length you are seeking. Note also that GIC rates are updated daily.

3-Month – 0.40%

6-Month – 0.60%

1-Year – 1.05%

2-Year – 1.50%

3-Year – 1.75%

4-Year – 1.80%

5-Year – 2.00%



As mentioned above, usually one would expect to receive a higher rate on a GIC because they are locking in money (sacrificing flexibility). However, at present the best permanent rate available on a savings account is unmatched by GICs until you enter the 3-year timeframe. Even in to the 3 – 5 year timeframe, the rate premium achieved via a GIC versus the top current savings account is not large enough to warrant the flexibility sacrificed.

Maintaining flexibility while earning comparatively high interest is the best of both worlds.

If you want to explore short-term savings options such as the above, please contact us. We can assess your situation and advise you accordingly.


Sources: iA Wealth, Equitable Bank, Tangerine Bank, Manulife Bank, Dynamic Funds

This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.