High-Interest Savings Accounts vs Real Estate? How to navigate an inflating financial system

Last September we wrote a blog post questioning if “High Interest” savings accounts still exist in Canada” and the results were not great. 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%.

Now that 2022 has kicked off we thought we would revisit high-interest savings accounts from Canadian banks and compare that to the current rate of inflation as well as some of the past addy real estate investment opportunities.

Saving In A Bank Account

We looked at three of the big banks to see if their offers had changed. Here is what we found on their website for their high-interest savings account offerings;

We did find an outlier with EQ Bank offering a bit better of a rate for saving your cash. EQ Bank’s Savings Plus Account offers an interest rate of 1.25%.

Canada’s Inflation Rate

According to Statistics Canada, Canada’s inflation rate stays at an 18-year high of 4.7% for the month of November 2021. Meaning that if you have your money sitting in cash in your “high interest” savings account you are essentially losing money due to inflation.

Real Estate Investing

Investing in real estate offers you the potential to protect and grow your money through diversified real estate holdings across Canada.  Investment opportunities brought onto the addy platform range in projected timeline, returns and location. Here are some of the past investment opportunities that have been available on the addy platform and can act as a way to protect and grow your wealth:

Start Investing in Real Estate

Properties come onto the addy platform every month so that you can review the details of the opportunity, read the Offering Memorandum, watch the videos  and then make an informed investment decision.  addy members can invest $1 – $1500 per property.  The latest opportunities are listed here.

Protect Against Inflation:

 

 

5 thoughts on “High-Interest Savings Accounts vs Real Estate? How to navigate an inflating financial system

  1. Cameron says:

    High interest rate savings earning 0.00% is not a place to save up a down payment for a house. Investing in properties with Addy a little bit at a time, then when you have a property portfolio that matures, using that for a downpayment for a house – now that makes a lot more sense.

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