ING Direct, now Tangerine, made their name by being a virtual bank and offering high interest savings accounts to Canadians. Over the years, the term “high interest” has significantly changed with banks offering rates slightly above 0% to their customers.
Right now Tangerine is promoting a 2.5% promotional rate for their high interest savings account but that is only for 5 months, after that it drops to their current rate of 0.15%. Over the years their high interest rate has dropped from a high of 5% down to today’s 0.15%. You can see their historical rates on their website or in the graph below.
What is considered “high interest” for savings accounts in 2020?
Royal Bank of Canada (RBC) is offering a “High Interest eSavings” account at 0.050%
Toronto Dominion (TD) is offering a “TD High Interest Savings” account at a whopping 0.0% if you have less than $4999.99 in your account. If you have over $1,000,000 you will earn 0.05%.
Canadian Imperial Bank of Commerce (CIBC) “eAdvantage Savings Account” has a promo on for 1.50% for the first 120 days, then it drops down to 0.05%
Bank of Nova Scotia (Scotiabank) offers a “MomentumPLUS Savings Account” that has a base rate of 0.05% and what they call “Premium Period Interest” where it can go as high as 1.10% for 360 days.
Overall, from the major banks, the rate of 0.05% is pretty standard across the board with the exception of any temporary promotional period. Tangerine Bank, operating as Tangerine, a subsidiary of Scotiabank seems to offer the highest standard rate at 0.15%.