By Keph Senett on December 17, 2024
Estimated reading time: 7 minutes

How to save money in Canada: A new way that offers higher interest and more flexibility

By Keph Senett on December 17, 2024
Estimated reading time: 7 minutes

Move over, GICs and HISAs—Canada just got a new savings account that offers the best of both worlds. Meet the EQ Bank Notice Savings Account.

Two smiling young men check their accounts on their phones

Image by Freepik

If you’re saving up for a financial goal or large expense—whether it’s a vacation, future vet bills or just your rainy day fund—chances are you’re setting aside money in a regular chequing account, a high-interest savings account (HISA) or a guaranteed investment certificate (GIC). Maybe you’ve gone even further and invested in a money market fund (MMF) or an exchange-traded fund (ETF) that invests in low-risk government and corporate debt securities. Whatever your strategy, your choices as a Canadian saver have been limited to these options—until now.

Meet the Notice Savings Account (NSA) from EQ Bank. This new savings account lets Canadians access high regular interest rates while maintaining flexible access to their funds. Read on to learn how an NSA can help you reach your short-, medium- and long-term savings goals.

EQ Bank Notice Savings Account

go to site

Monthly fee: $0
Interest rates: 3.00% for 10-day notice, 3.05% for 30-day notice. Read full details on the EQ Bank website.
Minimum balance: n/a
Eligible for CDIC coverage: Yes

go to site

What is a notice savings account?

A notice savings account is an account designed to offer a healthy interest rate (like a GIC) while also allowing you to access your funds when needed (like a HISA). The key difference with an NSA is that you must provide a minimum amount of notice before you withdraw funds, hence the name.

If you’ve never heard of notice savings accounts, you’re not alone. Although these types of accounts are common in the United Kingdom and Australia, they’ve rarely been available to most Canadians—and they’re often restricted to business customers or aimed at high-net-worth individuals.

EQ Bank is changing all that. Its new Notice Savings Account is the first in the nation to offer NSA benefits to Canadians with no fees and no minimum deposit. Let’s take a closer look.

How does the EQ Bank Notice Savings Account work?

As its name suggests, an NSA is a savings account, meaning that you earn interest on funds you deposit. Typically, the more notice customers agree to give their bank before making a withdrawal, the better the rate they earn.

When you open an EQ Bank Notice Savings Account, you choose between two interest rates: 3.00% and 3.05%. You can earn 3.00% on your deposit by agreeing to give the bank 10 days’ notice before withdrawing money. If you want to earn 3.05%, the notice period is 30 days. (Read full details on the EQ Bank website.)

Ten or 30 days may seem like a long wait to withdraw money from a bank account, but keep in mind that an NSA is meant for longer-term savings—and it pays higher interest accordingly.

Once you deposit your money, you’ll earn interest daily. Plus, you can continue to make deposits to the account. The EQ Bank Notice Savings Account is not a registered account, so you don’t need to keep track of your contributions, and there’s no paperwork to take money out. Simply make a withdrawal request online or through EQ Bank’s mobile app. After 10 or 30 days, depending on which account you’ve chosen, your money will be deposited into your selected account.

How do NSAs compare to GICs, HISAs and MMFs?

Notice savings accounts can complement the use of other savings products, particularly HISAs used for short-term savings, and GICs and MMFs used for medium- or longer-term savings. Here’s a comparison of features.

	EQ Bank NSA	HISA	GIC	MMF
Interest rate or yield	3.00% or 3.05% interest	Interest rates typically range from 0.01% to 4.00%	Varies—generally, GICs with longer terms and less flexibility have higher interest rates. Current rates for 30-day GICs (the shortest term available) range from 2.8% to 4.3%.	Currently, you can find money market funds yielding 4% to 5%
Withdrawal terms	10 days or 30 days, depending on the account	Cash withdrawals are immediate; transfers may take a few days	At end of term only (unless it’s a cashable or redeemable GIC)	Usually takes a few days to withdraw
Minimum balance	No	No	Usually $500; only $100 minimum investment with EQ Bank	$100 to $5,000, depending on the fund
Maximum contribution	$200,000 for an individual account, $500,000 for a joint account	No	Non-registered accounts usually have either a very high maximum or no maximum amount. Registered accounts (RRSPs, TFSAs, etc.) have contribution limits.	No
Fees	None	Sometimes	None	Management fees of 1.5% to 2%
CDIC coverage (up to $100,000)	Yes	Yes	Yes	No

HISA and GIC annual interest rates and MMF trailing 12-month yields were sourced from a range of Canadian financial institutions in late May 2024. Rates and yields are provided for information purposes only and are subject to change at any time.

Why should I open an EQ Bank Notice Savings Account?

With its new Notice Savings Account, EQ Bank aims to fill a gap in the Canadian banking market. According to a recent EQ Bank survey, NSAs could help address some common consumer pain points. Let’s take a closer look at the findings.

How do Canadians save? For short-term and mid-term savings goals, Canadians are most likely to use regular chequing accounts (60%). With an EQ Bank Notice Savings Account, savers can take advantage of competitive rates and have the flexibility to access their money in as little as 10 days.
What are Canadians saving for? More than half (55%) of Canadians are saving for vacation or travel, and 49% are putting money into their emergency or rainy day fund. These are short- and mid-term savings goals, so savers will want the flexibility to withdraw their funds when they want it. You can access your money with EQ Bank’s Notice Savings Account in as little as 10 days.
Good interest rates for all: One in four Canadians prefers banks that give all customers the same interest rate. EQ Bank’s Notice Savings Account offer the same rate options to everyone, no matter how much they have to deposit.
No promos, please: Just 5% of Canadians prefer banks that offer periodic promotions exclusively to certain customers. Promotional interest rates are only good for a short time frame, typically a few months. With an NSA, you will always get a competitive rate.

Also good to know: An EQ Bank Notice Savings Account has no fees or minimum balance requirements. You can contribute as much as you want and make withdrawals with as little as 10 days’ notice. Plus, for additional peace of mind, the EQ Bank NSA is protected by up to $100,000 in CDIC deposit insurance per depositor.

How to open an EQ Bank Notice Savings Account

The new EQ Bank Notice Savings Account is available to EQ Bank customers. It takes just a few minutes to open the account via the EQ Bank website or mobile app.

The EQ Bank NSA: A welcome addition to Canadian savings tools

EQ Bank’s Notice Savings Account offers a secure, flexible, high-interest product with unlimited deposits and withdrawals with notice as short as 10 days. Available without minimum balances or promotional restrictions, EQ Bank’s Notice Savings Account offers Canadians a strong option for their short- to mid-term savings goals like vacation funds, large expenses or a rainy day fund. It is also an excellent option for those who have maxed out their registered accounts such as tax-free savings accounts (TFSAs) or registered retirement savings plans (RRSPs).

Once available only to high-net-worth individuals and corporations, these benefits are now accessible with no minimum deposit. Head over to the EQ Bank website or download the app to open your EQ Bank Notice Savings Account today.

Interest on the EQ Bank Notice Savings Account is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.

About the survey

These are the findings of a survey conducted by EQ Bank from April 24 to 26, 2024, among a representative sample of 1,504 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/-2.5 percentage points, 19 times out of 20.

This article is sponsored.

This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers.